Security Bank Posts PhP6.7B Net Income for 2011
Makati—(PHStocks)—Security Bank Corp. (PSE: SECB) released its unaudited 2011 full year results showing a net income of PhP6.7 billion and a return on equity (ROE) of 25%, exceeding its targets for the year. This accomplishment was achieved as Security Bank continued to uphold its commitment to deliver superior customer experience and shareholder value.
Total assets expanded by 30% to PhP215 billion, with the loan portfolio reflecting a 24% increase to PhP92 billion as of year-end, spurred by strong credit demand in the top corporate and middle market segments.
With the asset growth from loans and investments, net interest income grew by 24% to PhP7.5 billion. This translated to a healthy net interest margin (NIM) of 4.1%.
The strong core revenue performance was complemented by service charges and foreign exchange income growing by PhP171.3 million or 11%, which compensated for lower trading gains.
Security Bank President and Chief Executive Officer Alberto S. Villarosa remarked: “We clearly surpassed our targets for the year, aided by a bullishness that is evident in the renewed investor confidence in the country, with unprecedented loan growth not only for our bank but also for the rest of the industry. Our full year performance was likewise enhanced by a favorable emerging bond market at it benefited our efforts at managing the interest rate and duration profile of our investment portfolio. We attribute out outstanding accomplishments to the continued trust, support and confidence of our customers and business partners, and to the commitment, dedication and execution skills of our management and staff.”
The bank’s continued emphasis on cost efficiency is reflected in its cost to income ratio of 37.4% for 2011, based on operating expenses, excluding provisions and impairment losses, amounting to PhP4.4 billion.
Security Bank’s asset quality numbers remain healthy with non-performing loan (NPL) ratio of less than 1% and a reserve cover of 308%. The bank’s capital adequacy ratio (CAR) of 20.3% demonstrates a capital base capable of supporting further expansion and growth.
Chief Financial Officer Joselito E. Mape further commented: “The Bangko Sentral ng Pilipinas’ consent to our acquisition of Premiere Development Bank and the license to open 50 new branches within the Metro Manila restricted area will usher in an unparalleled growth phase for the bank. That said, SECB will remain cognizant of growing our franchise without compromising the discipline we have imposed on our costs as well as our asset quality and credit criteria.”
The bank is well positioned to participate in the current credit expansion. In anticipation of the continued credit demand over the near term, the bank has launched an offering of Long-Term Negotiable Certificates of Deposit (LTNCD) to its retail and institutional clients. The offering period is from January 30, 2012 to February 10, 2012.
Recently, Security Bank was cited Best Banking Group in the Philippines at the World Finance Banking Awards and ranked by Asian Banker as the best for achieving the highest return on assets in all of Asia, as well as the third strongest bank in the Philippines.
