12 May 2023, Makati City, Philippines – Security Bank Corporation (PSE: SECB) posted net profit of PHP2.4 billion in Q1-2023, driven by growth in core businesses.

On a sequential quarter-on-quarter basis, net profit increased 18%. Net interest margin increased to 4.06%, up by 14 basis points versus previous quarter. Net interest income likewise increased 3% quarteron-quarter.

On a year-on-year basis, total revenues grew 6% to PHP9.8 billion. Net interest income increased 7% to PHP7.5 billion. Total non-interest income was at PHP2.3 billion, up 2% year-on-year. Non-interest income was driven by service charges, fees and commissions, which was up 2% year-on-year.

Operating expense was 12% higher versus year-ago level, driven by investments in manpower and technology.

Pre-provision operating profit was PHP3.7 billion. The Bank set aside PHP616 million as provisions for credit losses in Q1-2023. Gross non-performing loan ratio was at 3.12%, down from 3.65% a year ago.

Gross non-performing loans were also lower versus previous quarter by 1%. NPL reserve cover was at 99%, up from 90% a year ago.

Return on shareholders’ equity was 7.42%. Return on assets was 1.15%.