The net income of SECURITY BANK Inc. reversed the decline in the previous three months due to the rise in consumer loans and deposits in the third quarter.
In the July-September period, the Bank recorded a net income of P2.25 billion, up 5% compared to the same quarter of the previous year and 15% higher than its second quarter profit.
In A key factor for earnings growth was the constant expansion of bank consumer loans and low-cost deposits. Consumer loans increased 48% year-on-year and low-cost deposits increased 18%.
The Bank's total loans reached P401 billion, which is 8% higher than the P370 billion recorded in the third quarter of 2017. However, the year-on-year record in 2017 was slower than the credit growth of 38%.
The lender said that the growth of wholesale loans fell from 36% to 2% in the third quarter, but it would be 9% if the short-term corporate bridge loan from July to September last year was excluded. It could increase the bank's total credit growth by 15%.
Consumer loans were larger than the 14% share in the same period of the previous year, accounting for 19% of total loans in the quarter.
On the other hand, total deposits increased by 9% from P468 billion in the third quarter of last year to P468 billion. High deposits also grew by 3%.
Net interest income for customer loans and deposits also increased by 23% compared to the previous year.
The net interest rate was 4,43% in the third quarter, 11 basis points compared to the previous year (bp) and 16 basis points compared to the previous quarter.
Bank's service fees, fees and commissions increased by 38% due to bank insurance, credit card, deposit fees and credit fees.
Operating expenses for the third quarter increased by 13% compared to the previous year, excluding credit and impairment losses.
On the other hand, income tax provisions increased by 118% due to the bankacılık increase in income from regular banking unit Öte.
Net interest margin was 3.3% higher in the third quarter, seven basis points compared to the previous year and 11 basis points compared to the previous quarter.
In the first nine months of the year, the Security Bank posted a P6.5 billion net income of 11% lower than the previous year. I In essence, the decline in trade earnings stood at 57% or P627 million. 73% for income tax or P769 million. "
In the January-September period, total net interest income increased by 7% year-on-year to P15.3 billion.
Bank's net interest income from loans and deposits increased by 30% to EUR 3.3 billion. On the other hand, interest income from financial investments decreased by 13% due to the low securities portfolio, which decreased by 18% compared to the same period of the previous year.
With the exception of provisions related to credit and impairment provisions, operating expenses increased by 13% compared to the previous year and the ratio of income expenses was determined as 54%.
The listed lender stated that the asset quality is T healthy üt and that the gross non-performing loan (NPL) ratio of 0.6% as of June is 0.7%. Loan loss provisions were realized as P227 million in January-September period, while NPL ratio was 120%.
The Bank's capital adequacy ratio remained stable at 18.6% at the end of September and at 18.5% last year. In this period, the common capital coefficient was 1% and last year it was 16.2%.
Shareholders 'equity rose by 8.1%, while shareholders' equity increased by 6% YoY to P919 billion.
As of the end of September, the Bank's total assets were P733 billion.
Security Bank shares closed on Monday at P146.10, climbing to P1.70 or 1.18% on the previous closing. – Elijah Joseph C. Tubayan