SBC declares cash dividends-A A +A
Wednesday, October 2, 2013
THE board of directors of Security Bank Corp. has approved 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 percent and maturity date on December 10, 2018. As of June 30, the Bank's total Capital Adequacy Ratio (CAR) was 18 percent and Tier 1 CAR was 16.2 percent.
Security Bank's board of directors called for a special stockholders' meeting on November 26 to seek shareholders' approval for the creation of one billion preferred shares with par value of 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 offering, after the distribution of the 20 percent common stock dividend this year.
Upon receipt of regulatory approvals, the preferred shares will be offered to eligible common stock holders, with each eligible stockholder entitled to subscribe to one voting preferred share for every one common stock held as of the record date.
The record date will be determined after the receipt of regulatory approvals. The timetable for the issuance of the preferred shares will be dependent on the approval of regulators Bangko Sentral ng Pilipinas and Securities and Exchange Commission.
Security Bank continues to pursue growth with quality. As of June 30, its total assets increased by 25 percent year-on-year to P294 billion, deposits grew by 37 percent to P179 billion, and loans grew by 21 percent to P133 billion. Loans went to power, utilities, infrastructure, wholesale and retail trade, food and agriculture, consumer goods and other key sectors of the economy.
Published in the Sun.Star Davao newspaper on October 02, 2013.