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To our stockholders and friends:
This year marked a significant milestone for the
bank as it celebrated its 55th year anniversary.
Amidst a markedly different environment previously
unseen, characterized by a continued decline in
interest rates, an appreciating peso and industry
consolidation; the bank has delivered yet another
year of exceptional profits.
I am proud to report that in 2006, net income
reached P1.9 billion — 65% better than the
successive 50% growth rates in 2005 and 2004.
Return on equity was 17.3% versus 13.4% the
previous year, the highest among private domestic
universal banks in the industry.
These record achievements attained over the last
three years reflect the soundness of our business
model and the strategic plans we set forth in
2003. Our objective, then and as it is today,
remains the same: the
creation of value for all our stakeholders, in
good and bad times, founded on the cornerstone of
good corporate governance.
The focus on our customers, knowing and satisfying
their needs, has encouraged the patronage of an
increasing number of loyal clients. Our continuing
investments in human resources and technology are
bearing much fruit. We are proud of our management
team and staff. The effective execution of our
business plans is a tribute to the competence,
dedication and synergy of their collective
efforts.
Our stockholders now enjoy a share price of P78.00
from less than P11.00 four years ago. The improved
share price has resulted in a more than seven-fold
growth in the bank’s market capitalization from
P3.5 billion as of year-end 2002 to P26.0 billion
as of March 2007. We have also consistently
increased our bi-annual cash dividend pay-out.
These gains received public confirmation when
Security Bank’s shares were incorporated into the
Philippine Stock Exchange Composite Index.
In the face of these accomplishments, we share the
benefits of our success with the communities we
serve through our Security Bank Foundation, Inc.
and involvement in various community projects.
Having established a track record for value
creation and superior execution, we dare not rest.
The test we face today is to sustain in the years
ahead, the triumphs recorded in the past. This
proves a worthy challenge as past success has
substantially raised our bar
Mindful of this reality, members of the board and
senior management did an extensive review of our
accomplishments to date and reaffirmed the
directions and strategies that will guide us over
the next five years. A strong balance sheet,
competent management team and staff; and
ultimately, the support of all our stakeholders
are the assets that will ensure future success.
It is with this note of optimism that I wish to
thank all of you, our stakeholders, and look
forward to your continuing support as we deliver
superior results in the years ahead.
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