Security Bank earns record income in 2012

0

Security Bank Corp. claims that it has delivered sustained financial results in 2012 with an all-time high net income of P7.5 billion, and industry-best return on shareholders’ equity of 22 percent and return on assets of 3.3 percent.

The bank also delivered on its growth objectives, highlighted by the 30-percent increase in its loan portfolio to P 119.7 billion, outpacing the banking industry’s 16-percent growth for the year. In support of economic development, the Security Bank’s loans went to critical sectors of the economy such as power, utilities, infrastructure, wholesale and retail trade, food, agriculture and consumer goods.

Supported by the expansion in the bank’s branch network, its deposits grew by 19 percent to P142.4 billion, faster than the banking industry’s 7-percent growth rate. The growth in business volumes resulted in the 21-percent growth of the Security Bank’s total assets to P 259.30 billion.

In his management report, Alberto Villarosa, Security Bank president and chief executive officer, highlighted the unprecedented 72-branch expansion of the Security Bank group in 2012, consisting of 34 new Security Bank branches and 38 branches of Security Bank Savings, the former Premiere Development Bank which it acquired in February this year.

The total branch network of the Security Bank group at 2012 year-end was 208, up from 136 branches in 2011 year-end.

Villarosa said in his report, “We are strengthening and expanding our retail banking segment to make it another major business of the bank in the medium term. On its first year of operation, Security Bank Savings, our thrift bank subsidiary, aligned its standards with those of parent Security Bank.”

He also reported that despite the faster-than-industry growth rates of loans and deposits and the unprecedented branch network expansion, Security Bank’s financial soundness remained strong. Asset quality as reflected in the nonperforming loans (NPL) ratio further improved to 0.7 percent from 0.9 percent of 2011, lower than the banking industry average NPL ratio of 1.87 percent as of December 2012. The bank’s NPL reserve cover of 256 percent continued to be higher than the industry average.

Security Bank’s cost-to-income ratio increased to 42.9 percent in 2012 from 36.9 percent in 2011, because of the branch expansion, but this ratio continued to be among the best in the industry. The bank’s capital adequacy ratios (CAR) remained strong with total CAR of 16.3 percent and Tier 1 CAR of 14.7 percent.

In the first quarter of 2013, Security Bank reported a year-on-year profit growth of 11 percent to P1.2 billion. This compares favorably with the 8-percent year-on-year profit growth the bank reported in the first quarter of 2012, and the 12-percent profit growth for the full year of 2012.

A key highlight in Security Bank’s first quarter 2013 results was the 31-percent year-on-year growth in its total operating income, driven by its fee and other income-generating core activities. Its net interest income was steady at P2 billion despite the net interest margin squeeze to 3.6 percent from 4 percent a year ago.

Share.
loading...
Loading...

Comments are closed.