Security Bank Corporation posted a 53 percent jump in net income to P10.6 billion in 2022, driven by growth in core businesses, lower credit provisions and normalized income tax provisions.
In a disclosure to the Philippine Stock Exchange, the bank said total revenues grew 8 percent year-on-year to P39.6 billion.
“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 SME clients,” said Security Bank President and CEO, Sanjiv Vohra.
He added that, “We will sustain that intensity for 2023 as we help clients navigate the current inflationary environment and geopolitical uncertainties.”
Net interest income increased 7 percent to P29.2 billion as net interest margin for the full year declined to 4.23 percent from 4.43 percent in 2021.
Total non-interest income increased 11 percent to P10.4 billion. Service charges, fees and commissions grew 17 percent to P5.3 billion, led by increase in fees from credit cards, deposits and capital markets.
Other non-interest income excluding securities trading gains and fee income rose 40 percent to P5.1 billion, driven mainly by foreign exchange income, recovery on charged-off assets and profits from assets sold.
Operating expense was 8 percent higher, driven by investments in manpower and technology. Cost-to-income ratio was 57.8 percent, same level as in 2021.
Pre-provision operating profit was P16.7 billion, up 8 percent year-on-year. The Bank set aside P2.8 billion as provisions for credit and impairment losses in 2022, a 46 percent decrease versus year-ago level of P5.3 billion.
Gross non-performing loan ratio decreased to 2.95 percent from 3.94 percent in previous year. NPL reserve cover increased to 101 percent from 93 percent in previous year.
Return on assets increased to 1.37 percent from 1.02 percent a year ago. Return on shareholders’ equity increased to 8.42 percent from 5.57 percent a year ago.
Low-cost savings and demand deposits grew 10 percent year-on-year and account for 58 percent of total deposits as time deposits grew 34 oercent. Total deposits grew 16 percent to P606 billion.
Net loans increased 12 percent year-on-year to P503 billion, driven by both wholesale loans which grew 10 percent and retail loans which accelerated to 16 percent growth.
The growth in retail loans was driven by home loans, which grew 21 percent, and credit cards, which rose 34 percent.
Security Bank continues to be among the country’s best capitalized private domestic universal banks. Common Equity Tier 1 Ratio was 16.1 perce t and Total Capital Adequacy Ratio (CAR) was 16.6 percent.
Total assets increased to P842 billion, up 20 percent year-on-year. Shareholders’ capital was at P126 billion.