Security Bank declares ROE of 31%-A A +A
Wednesday, August 15, 2012
SECURITY Bank Corp. reported a net income of P5 billion in the first half of the year, reflecting an increase of 107 percent over the previous year’s P2.4 billion.
It credited the expansion of its core businesses and securities trading gains for the positive results, which translate to an annualized return on equity (ROE) of 31 percent.
President and Chief Executive Officer Alberto S. Villarosa, in a press statement, said the bank’s momentum shows the “expansive confidence of both international and domestic investors” on the Philippine economy.
“Although our first semester results were exceptionally strong, we benefited from a one-time gain from the disposal of investment securities. Our net interest margins reflect continued stiff competition for deposits and loans,” he also said.
The bank said its deposits grew by 26 percent to P130.7 billion as of June 30, 2012, while its loans grew 29 percent to P110.3 billion.
Net interest income grew to P4.0 billion, a P500-million or 14 percent increase over the first half of 2011, the bank said.
Chief Financial Officer Joselito Mape said the bank is in the initial stages of an investment phase with the expansion in its branch network and the acquisition of Security Bank Savings.
Operating expenses, excluding provisions for credit and impairment losses, amounted to P2.9 billion, 40 percent higher than the comparable period in 2011. The bank said this was mainly due to the increase in gross receipts tax as a result of higher revenue, the consolidation of expenses of Security Bank Savings (formerly known as Premiere Development Bank), which Security Bank acquired in February 2012, as well as the opening of 10 out of the 50 new restricted-area branches.
Security Bank’s non-performing loans ratio of 1.1 percent for the period remains among the best in the industry, with related NPL cover at 219 percent. Its capital adequacy ratio stood at 18.2 percent for the period. (PR)
Published in the Sun.Star Cebu newspaper on August 16, 2012.