Security Bank earns record P7.5B

SECURITY Bank Corp. released its unaudited 2012 full year results which show an all-time high net income of P7.5 billion and a return on equity of 22 percent.

Customer loans grew by 30 percent to P119.6 billion, while deposits increased by 19 percent to P142.4 billion. This translated to an eight percent increase in net interest income despite the adverse interest rate pressure coming from prevailing low interest rate, the monetary easing by the Bangko Sentral ng Pilipinas, the removal of interest paid on reserve requirements, and sale of securities by the bank, the company said in a press statement.

As a result, the net interest margin in 2012 was 3.94 percent, slightly lower than the 4.08 percent in 2011.

Non-interest income increased by 44 percent mainly due to higher trading gains on securities as well as fee-based income. The cost-to-income ratio was 43.2 percent, higher than the 36.9 percent reported in 2011 as the bank embarked on branch expansion.

The bank ended the year with total assets of P259.5 billion for a 21 percent growth rate on the back of strong macroeconomic fundamentals. The return on assets was 3.3 percent.

Earnings per share increased by 11 percent to P14.84 while the book value per share increased by 21 percent to P73.28 as of year-end 2012.

Security Bank president and chief executive officer Alberto Villarosa said, “We are pleased to achieve our financial and business results amidst increased competition even while we are investing to increase our branch network and customer coverage capabilities during this period of economic growth.”

The bank opened 34 new branches and ended 2012 with a network of 208 branches for both Security Bank and Security Bank Savings, the former Premiere Development Bank that Security Bank acquired in February 2012.

Security Bank chief financial officer Joselito Mape said, “Our non-performing loan (NPL) ratio remained low at one percent while reserve cover was 213 percent. Our capital adequacy ratio (CAR) of 16.3 percent and tier 1 CAR of 14.7 percent reflect the higher loans and short-term treasury portfolio as of yearend 2012.”

Prestigious international financial publication The Banker of the Financial Times of London awarded Security Bank with the “Bank of the Year” of the Philippines in 2012 in awards ceremonies in November 2012 in London. In October 2012, The Asian Banker named Security Bank as the “Strongest Bank in the Philippines” in 2012. (PR)