FROM accounting for five-percent of revenues, publicly-listed Security Bank Corp is targeting to grow retail banking to make up about 30 percent of the company’s earnings in 2017.
That was according to its president and chief executive officer Alberto S. Villarosa during the inauguration of the five Security Bank branches in Cebu held at the Waterfront Cebu City Hotel and Casino.
“Retail bank is contributing only five percent of the bank’s (Security Bank) earnings. By 2017, we expect to grow it to one-third and we are optimistic that that can be achieved,” Villarosa said.
In a recent disclosure, Security Bank recorded P7.2 billion in net income last year, representing a 43 percent year-on-year increase. This amounted to a 16.3 percent return on shareholders’ equity (ROE).
In addition, total assets increased by 14 percent to P397 billion at the end of 2014 as deposits climbed by 20 percent to P247 billion and loans rose by 17 percent to P194 billion.
For 2015, the official said that it is targeting to double the growth of its consumer loans, with housing covering the bulk of the loans. At present, the bank’s income is primarily generated by wholesale and corporate loans.
Amount booked for consumer loans for this year, however, was not disclosed by the official.
To support the growth of retail banking, Villarosa said the company is eyeing to open 10 to 15 new branches scatted nationwide within the year. At present, Security Bank has 258 branches all over the country.
In Cebu, it has eight. The inaugurated branches last week have been long operating but these were soft launched only and were not inaugurated, explained Villarosa.
The official also said there will possible expansions in the South Road Properties and Talisay City, but no definite plans were placed yet.
“Our expansion plan in Security Bank is opportunistic. We first see to it that there is a good market to serve and a good space available,” Villarosa said.
The branches they inaugurated in Cebu include Security Bank Osmena Capitol, AS Fortuna, Lapu Lapu, Uptown Osmena, and Mandaue North Road.