Security Bank posts net profit of $61.35m in H1

Net interest income and non-interest income both fell compared to H1 2020.

Security Bank Corporation posted a net profit of $61.35m (PHP3.1b) in the first half of 2021, the bank revealed in an announcement. 

Net interest income was about $269.14m (PHP13.6b), down 14% compared to the first six months of 2020. Non-interest income was halved to $95m (PHP4.8b) compared to last year, or 52% lower than 2020’s net-interest income, only buoyed by extraordinary securities trading gains. 

Whilst profit before tax was $108.88m (PHP5.5b), up 20% from the same period in 2020, charges and expenses rose during the first half of 2021.

Also Read: Security Bank CEO Sanjiv Vohra on future-proofing a bank amidst a time of upheaval

Operating expense in the first half (H1) was slightly up 0.9% from the same period last year, driven by investments in technology and manpower to improve customer experience, the bank said. The cost-to-income ratio was 56.4%.

Security Bank also set aside more than $47.4m (PHP2.4b) as provisions for credit losses in the first six months of the year, a significant decrease versus PHP11b in H1 2020. 

Service charges, fees and commissions increased 28% to $41.55m (PHP2.1b), with fee income sources increasing from their year-ago levels, Security Bank said.

The gross non-performing loan ratio was 3.93%. NPL reserve cover was 103%.

($1 = Php 50.53)