Security Bank Reports Profit of ₱1 Billion in Q3, a 63.9% Drop Year-on-Year

Security Bank reports a net profit of ₱1 billion for the third quarter of 2020, a 63.9% drop in profit year-on-year. This brings the total net profit to ₱6.7 billion for the January-September period of the year, a 12.9% drop year-on-year.

Sanjiv Vohra, Security Bank president and chief executive officer, said “While revenues, margins and capital are resilient, the bank has maintained proactive credit provisioning given economic challenges arising from the pandemic. We are prudently supporting our clients, continuing vigilance in managing risks, and investing in initiatives to fortify our services,”

The bank increased provisions for probable credit losses amid the prolonged pandemic, greatly affecting its net profit. In the third quarter Security Bank set aside ₱10 billion in additional loan loss buffer as compared to ₱1.1 billion for the same period last year.

Security Bank spent only ¢38.4 for ever ₱1 earned in the first nine months of 2020, as compared to the ¢53.3 it spent to earn every ₱1 last year.

Source: Inquirer