Security Bank Corp. (PSE: SECB) posted net profit of PhP3.1 billion in the first half of 2021. Profit before tax was PhP5.5 billion, up 20% from the same period last year.
Net interest income was PhP13.6 billion, down 14% from year-ago level. Non-interest income was PhP4.8 billion, down 52% as 2020 was buoyed from extraordinary securities trading gains. Service charges, fees and commissions increased 28% to PhP2.1 billion, with fee income sources increasing from their year-ago levels.
Operating expense in 1H 2021 was slightly up 0.9% from the same period last year, driven by investments in technology and manpower to improve customer experience. The cost-to-income ratio was 56.4%.
Pre-provision operating profit (PPOP) was PhP8 billion. The bank set aside PhP2.4 billion as provisions for credit losses in 1H 2021, a significant decrease versus PhP11 billion in 1H 2020.
Gross non-performing loan ratio was 3.93%. NPL reserve cover was 103%. Return on shareholders’ equity was 5.05%.
For the April 1 to June 30, 2021 period, net income was PhP1.5 billion. On a sequential quarter-on-quarter basis, total revenues increased 9% to PhP9.6 billion. Net interest income grew 4% to PhP6.9 billion. Net interest margin in 2Q 2021 was 4.29%, up 7 basis points quarter-on-quarter and down 35 basis points year-on-year. Non-interest income increased 23% to PhP2.6 billion.
Operating expense in 2Q 2021 was higher by 4% versus quarter-ago.
Pre-provision operating profit in 2Q 2021 was PhP4.3 billion, 15% higher than quarter-ago level. In 2Q 2021, the Bank set aside PhP2 billion as provisions for credit losses.
Low-cost savings and demand deposits increased 16% from year-ago level, and account for 55% of total deposits, up from 48% a year ago. High-cost deposits decreased 11%. Total deposits increased 2% to PhP522 billion.
Gross loans stood at PhP438 billion, down 4% from year-ago level. Gross retail loans decreased 12% year-on-year, and account for 26% of total loans, while wholesale loans decreased 1%.
Security Bank continues to be among the country’s best capitalized private domestic universal banks. Common Equity Tier 1 Ratio was 19.8%, up from 18.8% a year ago. Total Capital Adequacy Ratio was 20.4%, up from 19.7% a year ago. Total assets stood at PhP704 billion. Shareholders’ capital was at PhP124 billion, up 2% quarter-on-quarter.
Security Bank was recently awarded Philippines’ Best Bank by Euromoney, Best for HNWs (High Net Worth Clients) in the Philippines by Asiamoney, and Best Retail Bank in the Philippines by Alpha Southeast Asia.
“Our second quarter results reflect continued quarter-on-quarter improvement from the fourth quarter of 2020 despite the challenging pandemic backdrop. Our team is grateful for the recognition of the Bank’s unrelenting commitment on delivering BetterBanking to address our clients’ needs,” said Security Bank President and CEO Sanjiv Vohra.