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Security Bank sees strong and balanced financial performance to continue

Security Bank Corporation (PSE: SECB), during its annual stockholders' meeting on Tuesday, May 29, 2012, informed its shareholders that it sustained its financial performance in 2011 with a strong 29% expansion of its balance sheet anchored on a hefty 23% growth in the loan portfolio, a net income of P6.7 billion, and a return on equity (ROE) of 24.6% for which Security Bank continues to have the best ROE in the Philippine commercial banking industry in the past several years.
Security Bank President and Chief Executive Officer Mr. Alberto Villarosa cited focused execution of the Bank's growth targets hand-in-hand with the unwavering commitment to maintaining superior returns and maximizing shareholder value as fundamental to the successful results in 2011.

In Mr. Villarosa's management report, he said that the Bank's total resources increased to P215 billion and the loan portfolio to P92 billion at year-end, bolstered by a positive investment climate and strong credit demand in the top corporate and middle market segments. Asset quality remained strong as the non-performing loans ratio was steady at 0.9%. As such, net interest income increased by 24% to P7.5 billion. Total operating income was P11.7 billion with strong contribution from the Bank's trading businesses which contributed P2.5 billion and other income which contributed which contributed P1.6 billion. The Bank maintained its cost discipline with a reduction of its total operating expenses, net of provisions and impairment by 8.6% from 2010 level. Its cost-to-income ratio was 36.9%, which is half that of the banking industry.

Mr. Villarosa likewise reported key highlights for the year with branch expansion being pursued in the restricted areas in Metro Manila, the acquisition and integration of Premiere Development Bank, which will be renamed Security Bank Savings; the joint venture with Marubeni for the set-up of a leasing business, and the successful offering of Long-term Negotiable Certificated of Deposits (LTNCD) last February 2012 which raised P5 billion.

The President emphasized that during this period, Security Bank will remain cognizant of growing the franchise without compromising the discipline imposed on costs as well as asset quality and credit criteria.

At the end of the First Quarter 2012, Security Bank reported a 20% increase in its loan portfolio to P99 billion and a 22% increase in its net interest income to P2 billion compared with the same period last year, reflecting the Bank's focus on driving growth through its core businesses. The Bank reported a healthy increase of 12% in its total operating income of P2.3 billion from the same period last year, and net income of P1.1 billion resulting to a 14.0% return on equity (ROE).

Queried further on the prospects for the remainder of the year, Mr. Villarosa reiterated that the Bank is squarely focused on providing superior shareholder value and consistent profitability.

In its meeting last March 2012, the Board of Directors of Security Bank approved a regular cash dividend of P0.50 per share and a special cash dividend of P0.50 per share for the first semester of 2012 with May 11, 2012 as record date and June 6, 2012 as payment date.

During the stockholders' meeting and the ensuing organizational board meeting, the following were elected to the Board of Directors: Frederick Y. Dy as Chairman, Paul Y. Ung as Vice Chairman, and Diana P. Aguilar, Anastasia Y. Dy, Jose R. Facundo, Eduardo I. Plana, Rafael F. Simpao, Jr., Alberto S. Villarosa as directors, and Philip T. Ang, Jame JK Hung, and Joseph R. Higdon as independent directors.

In 2011, Security Bank was cited as the "Best Banking Group in the Philippines at the World Finance Awards and was rated the best bank by Asian Banker for achieving the highest return on assets in Asia, as well the third strongest bank in the Philippines. Just recently, Security Bank received the prestigious "Cesar EA Virata Award" from the Philippine Dealing System Group as the country's Best Securities House for the Seventh consecutive year. In 2012, FinanceAsia has named the bank as the country's "Best Mid-Cap Company".
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"Security Bank sees strong and balanced financial performance to continue" was written by Mary under the Banking category. It has been read 2185 times and generated 0 comments. The article was created on and updated on 29 May 2012.
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