The Board of Directors of Security Bank Corporation (PSE: SECB) approved on September 24, 2013 the declaration of a regular semestral cash dividend of P0.50 per share and a special cash dividend of P0.50 per share on the outstanding capital stock of the Bank for a total cash dividend of P1 per share for the semester, subject to approval of the Bangko sentral ng Pilipinas (BSP). The record date and payment date will be determined after receipt of BSP approval on the cash dividend declaration. This will bring the total cash dividend for the year to P2 per share.
The Bank’s Board also approved the exercise of the call option on and redemption of the Lower Tier 2 subordinated notes with face value of P3 billion. The notes were issued on December 10, 2008 with coupon rate of 8.625% and maturity date in December 10, 2018. As of June 30, 2013, the Bank’s total Capital Adequacy Ratio (CAR) was 18% and Tier 1 CAR was 16.2%.
Security Bank’s Board of Directors called for a special stockholders’ meeting on November 26, 2013 to seek hareholders’ approval for the creation of one billion preferred shares with par value of ten centavos (P0.10) per share. The preferred shares will be voting, non-cumulative, non-participating and non-convertible. The preferred shares are part of the Bank’s capital program which will provide incremental equity and improve the trading dynamics of the Bank’s common stockholders.
The Bank plans to issue 602.83 million preferred shares to holders of common stock through a one-for-one rights ffering, after the distribution of the 20% common stock dividend this year. Upon receipt of regulatory approvals, the referred shares will be offered to eligible common stock holders, with each eligible stockholder entitled to subscribe o one voting preferred share for every one common stock held as of the record date. The record date will be detenrmined after the receipt of regulatory approvals. The timetable for the issuance of the preferred shares will be dependent on he approval of regulators Bangko Sentral ng Pilipinas and Securities and Exchange Commission.
Security Bank continues to pursue growth with quality. As of June 30, 2013, its total assets increased by 25% year-on-ear to P294 billion, deposits grew by 37% to P179 billion, and loans grew by 21% to P133 billion. Loans went to power, utilities, infrastructure, wholesale and retail trade, food and agriculture, consumer goods and other key sectors of he economy. Security Bank group’s branch network increased by 82 branches from 136 branches at the beginning of 2012 to a total of 218 branches as of June 30, 2013. The universal bank has 180 branches and thrift bank subsidiary Security Bank avings has 38 branches. The Bank’s gross non-performing loan (NPL) ratio of 0.59% as of June 30, 2013 continues to be among the lowest in the Philippine banking industry while its NPL reserve cover ratio of 266% continues to be among the highest in the industry.
Security Bank was awarded by Asiamoney as the “Best Domestic Bank in the Philippines in 2013” last June 2013, and by he Asian Banker of Singapore as the “Best Managed Bank in the Philippines” in April 2013. Security Bank President and chief Executive Officer Mr. Alberto S. Villarosa was awarded as the “Best CEO for the Philippines” in The Asian Banker EO Leadership Award for the Period 2011-2013 last April in Jakarta, Indonesia. In 2012, The Banker of the Financial times of London awarded Security Bank as the “Bank of the Year” in the Philippines.