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The financial institution said these financial results were achieved on the back of an expansion in the bank's core businesses, as reflected in the vibrant 20.9 per cent growth of its loan portfolio to P66.4 billion (US$1.4 billion) and the 27.6 per cent increase in its deposit base to P105 billion over the first half of 2008.
Consequently, the growth in its balance sheet was accompanied by a 24-percent year-on-year increase in net interest income to P2.9 billion against the previous years P2.4 billion.
Security Bank also reported that total operating income for the first semester of 2009 grew by P434.8 million or 12.4 per cent to P3.9 billion over the prior year driven primarily by net interest income, albeit tempered by an 11.5 per cent decrease in other income which stood at P1.0 billion.
With the reduction in interest rate volatility, trading and securities gains reflected a 12-percent year-on-year growth which was offset by a 21-percent reduction in foreign exchange gains and service charges.
Operating expenses for the period amounted to P2.0 billion.
The combined results of its revenue and expense performance resulted in a net income for the first half of P1.4 billion, producing a respectable eight-percent growth from the same period last year.
"Our focus on building our core business while prudently managing risks in our earnings stream have been successful. Our sound balance sheet gives us the leverage to explore different opportunities. While signs of a global economic recovery still appear tentative, we maintain our guarded optimism for the country and the bank," said Security Bank president and chief executive officer Alberto S. Villarosa on their first half results.
Security Bank's non-performing loans ratio of 1.4 per cent for the period remains among the best in the industry.
The bank likewise set aside provisions of 306 per cent cover for these non-performing loans.
The bank's fundamentally sound capital base is reflected in its capital adequacy ratio (CAR) of 14.5 per cent, even after having called P3.0 billion of its outstanding Lower Tier 2 Capital in the first quarter of 2009
Security Bank chief financial officer Carlos M. Borromeo said balance sheet health remains to be a top priority and can be seen in first half 2009 performance, showing off an increase in resources of 10 per cent to P140 billion from June 2008s P127.7 billion.
"The 21-percent increase in the loan portfolio shows the bank's steady shift in its balance sheet profile as loans now account for 47.4 per cent of total assets versus 43.0 per cent recorded a year ago. This result was achieved while improving asset quality indices and capital strength," he said.
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