Security Bank Corp. (SBC) has gotten the green light of the Bangko Sentral ng Pilipinas (BSP) to boost its authorized capital stock to P10 billion.
“Security Bank Corp. received today [Friday] the approval of the BSP on the amendment of SBC’s articles of incorporation on the increase in authorized capital stock from P6 billion to P10 billion, divided into 1 billion common shares with a par value of P10 each,” the listed bank said in its disclosure to the Philippine Stock Exchange on Friday.
However, the bank specified that the amendments Articles of Incorporation, as cleared by the BSP, shall still be subject to the approval of the Securities and Exchange Commission (SEC).
“Upon the approval of the SEC of the amendment of the Articles of Incorporation authorizing the increase in capitalization, the bank can implement the payment of the 20-percent stock dividend, as approved by the BSP on July 11, 2013, with the settling of the record and payment dates,” SCB further said.
Upon securing board approval last month, SCB started to seek for regulatory and shareholders’ approval to beef up its capital and to issue P1-billion voting preferred shares.
In an earlier disclosure to the exchange, the board of directors of SCB approved the issuance of P1-billion shares of noncumulative, nonparticipating, nonconvertible voting preferred stock with a par value of 10 centavos each.
During the first half of the year, SCB saw a hefty decrease in its earnings due to branch expansion and lower gains. SCB’s profit for the period plummeted 66 percent to P1.7 billion this year from the P5 billion it earned in the same period last year.
The bank’s total assets amounting to P294 billion was up by a fourth from the P235 billion in 2012.