SECURITY BANK Corp.’s net income rose by 53% to P10.6 billion in 2022, driven by growth in its core businesses.

In the fourth quarter alone, its net income was at P2 billion, the bank said in a disclosure to the local bourse on Wednesday

Return on shareholders’ equity rose to 8.42% from 5.57% a year ago, while return on assets improved to 1.37% from 1.02%.

The bank’s financial statement was not available as of press time.

“We are encouraged by the underlying growth of the economy as it reopens and rebuilds. Our strong performance for 2022 reflects the fact that Security Bank is fully engaged to support our retail, wholesale, and small- and medium-sized enterprise clients,” Security Bank President and Chief Executive Officer Sanjiv Vohra said in a statement.

“We will sustain that intensity for 2023 as we help clients navigate the current inflationary environment and geopolitical uncertainties,” Mr. Vohra said.

The bank’s net interest income rose 7% to P29.2 billion. It booked a net interest margin of 4.23%, down from 4.43% in the previous year.

Net loans grew 12% to P503 billion, driven by both wholesale loans and retail loans, which grew by 10% and 16%, respectively. Retail loans made up 24% of the total.

“The growth in retail loans was driven by home loans, which grew 21%, and credit cards, which rose 34%. On a sequential quarter-on-quarter basis, net loans increased by 4%, with retail loans up 5% and wholesale loans up 4%,” Security Bank said.

The bank’s gross nonperforming loan (NPL) ratio declined to 2.95% in 2022 from 3.94% in the previous year. Its NPL reserve cover ratio climbed to 101% from 93% previously.

It said it set aside P2.8 billion as provisions for credit and impairment losses last year, lower by 46% from the P5.3 billion recorded in 2021.

On the funding side, total deposits grew 16% to P606 billion. Time deposits went up 34%, while low-cost savings and demand deposits increased 10% year on year and account for 58% of total deposits.

Meanwhile, total revenues grew 8% to P39.6 billion.

Total non-interest income increased 11% to P10.4 billion.

Service charges, fees and commissions grew 17% to P5.3 billion amid an increase in earnings from credit card, deposit and capital markets fees.

Other non-interest income excluding securities trading gains and fee income rose 40% to P5.1 billion, driven mainly by foreign exchange income, recovery on charged-off assets and profits from assets sold.

Meanwhile, operating expenses were 8% higher, driven by investments in manpower and technology.

Cost-to-income ratio was at 57.8%.

Security Bank’s capital adequacy ratio was 16.6%, while its common equity Tier 1 ratio was at 16.1%.

Total assets increased to P842 billion last year, up 20% from a year earlier.

The bank has 316 branches and 596 automated teller machines in the country to date.

Security Bank shares dropped by 3.70% or P3.80 to close at P99 apiece on Wednesday. — L.M.J.C. Jocson