11 August 2023, Makati City, Philippines – Quarterly Results: Security Bank Corporation’s (PSE: SECB) Q2- 2023 results improved across the board on a sequential quarter-on-quarter basis. Q2-2023 net profit was PHP2.6 billion, up 8% quarter-on-quarter. Pre-provision operating profit was PHP4.5 billion, 23% higher than quarter-ago level due to higher revenue growth of 10% compared to operating expense growth of 3%.

Q2-2023 net interest income grew 11% over the quarter to PHP8.3 billion. Net interest margin in Q2- 2023 increased to 4.58%, up 53 basis points quarter-on-quarter and up 22 basis points year-on-year.

Total non-interest income likewise increased 8% to PHP2.5 billion. Service charges, fees and commissions grew 13% to PHP1.5 billion. In Q2-2023, the Bank set aside PHP983 million as provisions for credit losses.

First Half Results: In the first half of 2023 (H1-2023), the Bank posted net profit of PHP4.9 billion, driven by growth in core businesses, increase in quarterly net interest margin, and normalized credit provisions. H1-2023 net interest income increased 9% year-on-year to PHP15.7 billion. Total non-interest income was at PHP4.9 billion, up 2%. Service charges, fees and commissions grew 7% to PHP2.8 billion.

H1-2023 operating expense was 16% higher, driven by investments in manpower and technology. Costto income ratio was 60.4% compared to 55.9% a year ago.

Pre-provision operating profit was PHP8.2 billion. The Bank set aside PHP1.6 billion as provisions for credit losses in H1-2023, an increase versus year-ago level of PHP408 million. Gross non-performing loan ratio decreased to 3.06% from 3.28% a year ago. NPL reserve cover increased to 100% from 92% a year ago.

Return on shareholders’ equity was 7.67%. Return on assets was 1.20%.