Security Bank posts lower profit as assets increase

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Listed Security Bank Corp. registered a lower year-on-year profit in 2013, earning only P5 billion compared to the record profit of P7.5 billion it recorded in 2012.

But the bank’s total resources in 2013 grew 34 percent to P348 billion versus the prior year.

Based on its unaudited statement of condition as of December 31, 2013, which was submitted to the Bangko Sentral ng Pilipinas (BSP), Security Bank earned a net income attributable to equity holders of P5 billion, while the return on shareholders’ equity was at 13 percent.

Both are lower than what the bank had in full-year 2012.


In 2012, Security Bank claimed that it delivered sustained financial results 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.

Higher total resources
Security Bank’s total resources in 2013, on the other hand, grew 34 percent to P348 billion versus the prior year.

Loans of the bank also grew by 38 percent to P165 billion, while investment securities grew by 30 percent to P83 billion by year-end.

Also, asset quality of the bank remained healthy with A nonperforming loans (NPL) ratio of 0.08 percent and NPL cover of 195 percent (based on new definitions) as of December 2013.

“Our core business remains strong and continues to grow alongside the buoyant Philippine economy. We have made substantial investments in developing our Retail Bank and Asset Management business,” said Alberto Villarosa, Security Bank president and chief executive officer.

Total deposits of Security Bank increased by 45 percent year-on-year to P206 billion, supported by the opening of 36 new branches in 2013, 34 of which are Security Bank branches and two branches were thrift bank subsidiary Security Bank Savings (SBS).

“Our intent is to develop our retail business to become a meaningful pillar to complement our financial markets and wholesale businesses, as well as improve our ability to provide products and services that respond to our clients’ needs,” Villarosa further said.

The Security Bank group had a total of 244 branches by the end of 2013, 204 branches and 40 SBS branches. Over the past five years, the number of branches had more than doubled.

Meanwhile, Security Bank Chief Financial Officer Joselito Mape said that capital attributable to equity holders of the bank grew by 11 percent to P40.8 billion.

“Our capital adequacy ratio [CAR] is at 15.5 percent after redeeming our Tier 2 Notes in December 2013 while Tier 1 CAR is at 15.1 percent, both above the BSP’s [Bangko Sentral ng Pilipinas] minimum requirements. We continue to maintain strong capital ratios and a solid balance sheet,” he specified.

During the first nine months of 2013, Security Bank reported a net income attributable to equity holders of P4.2 billion. The return on shareholders’ equity was 14.5 percent.

Loans of the bank also grew by 34 percent during the 2013 nine-month period to P145 billion after it funded projects in various industries such as power, utilities, tollways and ports, as well as wholesale and retail trade, food and agriculture, consumer goods, and other vital sectors of the economy.

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