Security Bank Corporation posted net income of P6.9 billion in 2021 as the passage of the CREATE law triggered a one-time P1.2 billion charge for deferred tax assets.
Profit before tax was P10.3 billion, up 141 percent from the same period last year.
Net interest income was P27.5 billion, down 10 percent from year-ago level. Net interest margin for the full year was 4.43 percent, down by 27 basis points year-on-year. Total non-interest income was P9.4 billion, down 53 percent as 2020 was buoyed from extraordinary securities trading gains.
Service charges, fees and commissions increased 25 percent to P4.5 billion, with fee income sources increasing from their year-ago levels. Other non-interest income excluding securities trading gains and fee income grew 34 percent to P3.7 billion.
Operating expense was up by 8 percent from the same period last year, driven by investments in technology and manpower to improve customer experience. The cost-to-income ratio was 57.8 percent.
Pre-provision operating profit (PPOP) was P15.5 billion. The Bank set aside Php 5.3 billion as provisions for credit losses in 2021, a significant decrease versus year-ago level of Php 26.4 billion.
Gross non-performing loan ratio was 3.94 percent. NPL reserve cover was 93 percent.
Return on shareholders’ equity was 5.57 percent.
For the period October 1 to December 31, 2021, net income was P2.1 billion, up 21 percent versus quarter-ago level and up 171 percent versus year-ago level.
“Our fourth quarter results benefitted from the easing of mobility restrictions and the resulting uplift of the economy. We are optimistic about economic activity in 2022, despite the Omicron impact in January. The Bank’s retail and wholesale teams are fully engaged to support our clients as the economy continues to reopen.” — Security Bank President & CEO, Sanjiv Vohra.
On a sequential quarter-on-quarter basis, total revenues increased 2 percent to P9.3 billion. Net interest income grew 1 percent to P7.0 billion. Net interest margin in Q4-2021 was 4.37 percent, up 5 basis points quarter-on-quarter and down 51 basis points year-on-year. Total non-interest income increased 7 percent to Php 2.4 billion. Service charges, fees and commissions increased 24 percent to Php 1.3 billion.
Operating expense in Q4-2021 was higher by 3 percent versus quarter-ago.
In Q4-2021, the bank set aside P1.2 billion as provisions for credit losses. Pre-provision operating profit was P3.8 billion, 2 percent higher than quarter-ago level.
Low-cost savings and demand deposits grew 19 percent and increased to 61 percent of total deposits. High-cost deposits increased 18 percent. Total deposits increased 19 percent year-on-year to P524 billion.
Gross loans stood at P467 billion, up 1 percent versus year-ago. Retail loans were down 9 percent year-on-year. Retail loans are 23 percent of total loans versus 25 percent a year ago. Wholesale loans increased 5 percent year-on-year.
On a quarter-on-quarter basis, gross loans grew 4 percent with wholesale loans up 6 percent and retail loans at the same level as previous quarter, while low-cost savings and demand deposits increased by 6 percent versus quarter-ago level.
Security Bank continues to be among the country’s best capitalized private domestic universal banks. Common Equity Tier 1 Ratio was 19.1 percent and Total Capital Adequacy Ratio (CAR) was 19.8 percent.Total assets stood at P700 billion, up 7 percent year-on-year.
Shareholders’ capital was at P125 billion, up 1 percent.
