Securities Financial institution Corp stated internet revenue fell 7.2% to P6.9 billion in 2021, as internet curiosity earnings fell and spending rose, whereas debt-loss provisions narrowed sharply.
In a disclosure within the inventory market on Friday, the financial institution stated fourth-quarter internet revenue rose 171% to P2.1 billion, because the financial system opened up.
“Our fourth quarter outcomes benefited from the easing of mobility restrictions and the ensuing uplift of the financial system. Regardless of the Omicron affect in January, we’re optimistic about financial exercise in 2022,” stated Sanjeev Vohra, President and CEO of Suraksha Financial institution.
Internet curiosity earnings fell 10% to P27.5 billion in 2021, with internet curiosity margin – the distinction between what it earns in curiosity from loans and what it pays depositors – down 27 foundation factors to 4.43% .
Non-interest earnings fell 53% to P9.4 billion, with the financial institution saying its 2020 outcomes benefited from “extraordinary securities buying and selling positive factors”. In 2021, service charges, charges and commissions elevated by 25.4% to P4.5 billion, whereas buying and selling earnings elevated 34% to P3.7 billion.
Working bills elevated 8% in comparison with a yr in the past, because the financial institution upgraded know-how and personnel. This raised the cost-to-income ratio to 57.8%.
The financial institution put aside P1.2 billion in provisions for potential mortgage losses within the fourth quarter. This introduced mortgage loss provisions to P5.3 billion in 2021, a lot decrease than the P26.4 billion put aside in 2020.
Suraksha Financial institution’s gross mortgage portfolio grew 1% year-on-year to P467 billion on the finish of 2021.
Retail loans, which accounted for 1 / 4 of the mortgage guide, declined 9% in 2021. Wholesale loans rose 5%.
On the finish of 2021, the gross non-performing mortgage (NPL) ratio stood at 3.94%, whereas the NPL reserve cowl stood at 93%.
Complete deposits grew 19% year-over-year to P524 billion. Low value financial savings and demand deposits, which accounted for 61% of the entire, elevated by 19%. Excessive-cost deposits elevated by 18%.
Complete property elevated 7% year-over-year to P700 billion, whereas shareholders’ capital elevated 1% to P125 billion.
The Financial institution’s Capital Adequacy Ratio stood at 19.8%, whereas the Widespread Fairness Tier 1 Ratio stood at 19.1%. Each are above minimal regulatory necessities.
The return on shareholders’ fairness in 2021 was 5.57%.
Shares of Suraksha Financial institution closed Friday at P113, down 80 centavos, or 0.7%. , Lose Wendy T. Noble