Security Bank Corp. booked lower net income in the first half of the year on the back of lower trading gains and increase in provision for income tax.
In a regulatory filing on Tuesday, the listed lender said its net profit in the six months ending June stood at P4.3 billion, down 18% or P951 million from the P5.3 billion recorded in the same period last year.
Security Bank said it logged lower net income in the said period primarily due to the decrease in trading gains by 59% or P655 million from the first semester last year.
The bank meanwhile saw an increase in provision for income tax by 55% or P424 million in a comparable year-ago period.
Despite this, the bank’s net interest income climbed 8% to P10 billion from the P9.3 billion a year ago.
Net interest income from customer loans and deposits was at P7.4 billion, a 34% increase from last year’s P5.6 billion.
Total loans reached P383 billion as of end-June, 12% higher from the P340 billion recorded a year ago.
Consumer loans jumped 50% as it accounts for 18% of Security Bank’s total loan portfolio. Wholesale loans likewise grew 7%.
Security Bank’s non-performing loans (NPL) ratio was at 0.6% from last year’s 0.7%, while NPL reserve cover stood at 261%, which the bank said is the highest in the country. — Karl Angelo N. Vidal