Despite the unfolding health crisis and significantly higher provisioning for potential business losses, Security Bank Corp. remained profitable in the first semester.
Security Bank said on Thursday. Stock exchange filing that January-June net income reached P5.7 billion, up 14 percent from last year’s same era. This achieved a 68 percent boost in overall sales to 25.9 billion.
It has been attributed to a mixture of increases in net interest income and more opportunistic trade profits. Security Bank reported that revenues were still up 30 percent, even without profits from trading.
Security Bank said it set aside P11 billion as provisions in the midst of the economic downturn triggered by the COVID-19 pandemic, which will compensate for loan losses such as when lenders go bankrupt or renegotiate obligations. This, compared to the set aside P639 million in the same period of 2019.
“As we expect the impact of the pandemic on our loan portfolio will continue to unfold over the coming quarters, we have adopted a proactive stance on our provisions,” said Sanjiv Vohra, Security Bank president.
He added their balance sheet remained strong and that the company continued to make new investments despite the pandemic.
At the end of the semester, total deposits went up 14 percent to P511 billion. Low-cost savings and demand deposits grew 27 percent and increased to 48 percent of total deposits, up from 43 percent a year ago.
Total loans, excluding the lender’s finance portfolio, stood at P450 billion, up 7 percent year-on-year and down 2 percent quarter-on-quarter.
Retail loans rose by 25 percent year-on-year and represented 27 percent of total loans. Wholesale loans rose year-on-year by 4 percent.
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia
