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Grupo Security's Q1 profit jumps 36.2% as banking unit provisions plunge

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Grupo Security's Q1 profit jumps 36.2% as banking unit provisions plunge

Chile's Grupo Security SA posted a 36.2% year-over-year jump in its first-quarter net income as profits from its main banking unit, Banco Security SA, soared 70.5% annually.

The financial group showed net income of about 23.57 billion Chilean pesos for the three-month period, up from 17.31 billion pesos earned a year earlier. Earnings before interest, taxes, depreciation and amortization increased 26.6% from a year ago to 36.20 billion pesos.

Quarterly profit at Banco Security grew to 20.89 billion pesos from 12.25 billion pesos year over year, as the company grew its loan disbursements by 8.6% in the last 12 months.

Net interest income at the bank, meanwhile, rose to 40.46 billion pesos from about 36.00 billion pesos in the first quarter of 2017, and net commission income ticked 20.1% higher to 17.36 billion pesos. At the same time, operating expenses fell 2.1% to 32.16 billion pesos while net provision expenses plunged 37.8% to 6.45 billion pesos.

Net income from Grupo Security's factoring business, meanwhile, improved 9.2% year over year to 2.03 billion pesos.

The banking and factoring results helped offset a 15.5% drop in profits at the group's insurance division, where Seguros Vida Security Previsión SA posted 6.41 billion pesos in net income.

In the investments division, the company's Valores Security unit saw quarterly profits rise to 489 million pesos from 431 million pesos a year earlier, while AGF Security's net profit grew to 1.44 billion pesos from 1.27 billion pesos.

Grupo Security's return on average equity grew to 12.35% from 10.38% a year earlier, while return on average assets increased to 0.84% from 0.68%.

As of May 25, US$1 was equivalent to 625.40 Chilean pesos.