SECURITY BANK Corp. booked a higher net income in the second quarter following the expansion of its core businesses.

The bank said in its quarterly report released Wednesday that it booked a P2.57 billion net profit last quarter, up 31.79% from the P1.95 billion posted in the same period last year. This brought its first-half net earnings to P4.95 billion, up 15.38% from last year’s P4.29 billion.

Return on assets was at 1.3% , while return on equity stood at P8.83%.

Total revenues stood at P7.9 billion in the second quarter, up 32% year-on-year.

Net interest income went up 22% to P6.12 billion from P5 billion in the same quarter last year, driven by the expansion of its retail loans and low costs deposits, as well as increases in service charges, fees and commissions and trading gains, among others.

Retail loan growth was at 54%, with the business now accounting for 25% of the bank’s total loans versus the 18% share last year. Low-cost deposits rose 11%.

The bank said total loans climbed 11% to P427 billion, while deposits stood at P449 billion.

“Asset quality remained healthy, with gross non-performing loan (NPL) ratio at 1.1% versus 0.75% a quarter ago, and lower than industry’s 1.7% as of May 2019,” the bank said in a statement.

NPL cover was at 127.22% at end-June, up from 110.90% as of December 2018. It said it set aside P639 million in provisions for credit losses in the first half.

Service charges, fees and commissions also grew 70% to P1 billion, driven by loan fees, credit cards, deposit charges and bancassurance. Securities trading gains stood at P376 million.

Overall, Security Bank’s net interest margin rose to 3.59% in the second quarter, up 42 basis points year-on-year.

Meanwhile, the bank’s non-interest income also increased by 81% year-on-year to P1.7 billion.

The bank’s earnings increased even as its total operating expenses climbed to P4.57 billion last quarter from P3.45 billion in the same period in 2018.

Overall, Security Bank’s total assets increased 8% to P776.78 billion at end-June from P766.86 billion as of December 2018.

Its common equity Tier 1 ratio was at 16.8% at end-June, while its capital adequacy ratio stood at 19.2%.

Security Bank shares closed at P182.40 apiece on Wednesday, up P9.10 or 5.25%.