Security Bank’s net profit fell in 21

A branch of the Security Bank in San Pedro, Laguna. PHOTO BY AARON RONQUILLO

LISTED Security Bank Corp. announced a drop in its annual net profit in 2021 due to deferred tax assets.

The lender said in a statement on Friday that it generated 6.9 billion pesos last year, down 6.75% from its reported net income of 7.4 billion pesos in 2020.

This despite Security Bank reporting a higher net profit of 2.1 billion pesos in the fourth quarter of last year, up 21% from the previous quarter and 171% from a year ago. one year old.

“The passage of the Create (Corporate Recovery and Tax Incentives for Enterprises) law triggered a one-time charge of 1.2 billion pesos for deferred tax assets,” he said, explaining the drop in profits net of 2021.

According to the breakdown of the bank’s net profit in 2021, its net interest income was 27.5 billion pula, down 10% from the level of the previous year. Net interest margin for the full year was 4.43%, down 27 basis points from 2020.

Total non-interest income was 9.4 billion pesos, down 53% from a year earlier as 2020 was driven by gains on securities transactions. Service charges, commissions and fees increased by 25% to reach 4.5 billion pesos, as revenue streams from fees increased from the previous year.

Other non-interest income increased 34% to 3.7 billion pesos, excluding securities trading gains and commission income.

Security Bank reported an 8% increase in operating expenses over the same period last year, due to spending on technology and staff to improve customer service.

Its operating profit before provisioning was 15.5 billion pesos. The lender said it set aside 5.3 billion pesos as provisions for credit losses in 2021, compared to 26.4 billion pesos the previous year.

The gross non-performing loan (NPL) ratio was 3.94% while the NPL reserve coverage was 93%.

With a Tier 1 Tier 1 capital ratio of 19.1% and a total capital adequacy ratio of 19.8%, Security Bank said it remained one of the top domestic private universal banks. capitalized in the country.

It has a total asset value of 700 billion pesos in 2021, up 7% from the previous year.

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