THE Security Bank Corp. (SBC), a private domestic local bank, posted a net income of P657 million for the second quarter of this year, a year-on-year improvement of 40 percent or P187 million.
Bullish growth in the banking sector has allowed SBC deposits to reach P100 billion, particularly an P8-billion increase in net loans to P41.6 billion.
In a statement furnished to Sun.Star Cebu by SBC, the bank’s net interest income for the quarter rose 34.7 percent to P1.22 billion over the comparative period in 2006.
Income generated from fees, service charges, commissions and miscellaneous grew a combined P214.4 million or 92 percent to P448.6 million.
Foreign exchange gains registered P104 million, up by 156 percent over the second quarter of 2006.
Slowdown
The SBC document stated that the company’s favorable performance more than offset a slowdown in securities trading gains, which registered only P4.3 million versus the P108.8 million recorded a year earlier.
Meanwhile, operating profits registered a growth in underlying profitability versus the second quarter of 2006 of P325 million or 60% to P870.5 million.
This translates to an underlying profit per share for the quarter of P2.64 versus P1.66 the year before.
Earnings per share stood at P1.99 for the second quarter of 2007.
SBC chief financial officer Carlos Borromeo attributed the increase in revenues to strong corporate and consumer banking and the significant expansion of the bank’s deposit and investor base.
“We were cognizant that with the further reduction in interest rates experienced this year versus last, trading gains were expected to slow down.
Hence, we placed increasing focus on building both the net margin and other income components of our revenue base” Borromeo said in the statement.
In an earlier interview, Cebu Bankers Club president John Wayne Lopez said the counry’s upbeat banking industry has paved the way for more banks to constantly improve their portfolio aside from baring expansion plans.
With the indicators of economic growth, such as the strengthening of the peso, low interest rates and foreign investors’ confidence, Lopez said “now is the good time to borrow money and invest.”
SBC has three branches in Cebu and is planning open an additional branch in the northern part of the province, said bank president and chief executive officer Alberto Villarosa earlier. (MMM)
