Security Bank nets P7.4B in 2020

Security Bank Corporation saw its bottom line decline by over a fourth in 2020, taking into account the impact of the coronavirus disease 2019 (COVID-19) on business.

The lender on Tuesday reported its 2020 net income at P7.4 billion, reflecting a 26.7% decrease from the P10.1 billion it reported the previous year as the bank set aside P26.4 billion as provisions for credit losses.

Its gross non-performing loan ratio fell to 3.90% from 4.03% in the third quarter of 2020, while the non-performing loan reserve cover was 115%. Allowance for credit losses as a percent of total loans rose to 4.70% from 1.30% previously.

Total revenues rose 48% to P50.4 billion with the pre-provision operating profit (PPOP) up 85% to P30.7 billion, and total net interest income grew 14% to P30.6 billion.

"Our 2020 results reflect the fundamental strength of Security Bank amidst a very challenging pandemic-impacted environment. Our retail and wholesale teams maintained their steadfast support of our core clients," Security Bank president and chief executive officer Sanjiv Vohra said in an emailed statement.

"Our financial markets team nimbly navigated significant market movements. We supported our employees through the necessary operating model pivots as well as fortified the Bank's balance sheet with credit provisions," he added.

Security Bank ended 2020 with a total of 313 branches and 787 automated teller machines (ATMs). Shares in the company closed Tuesday at P133 apiece, up P3.00 or 2.31% from Monday's finish of P130.00 apiece. — Jon Viktor D. Cabuenas/BM, GMA News