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Security Bank Corporation (PSE: SECB) released its consolidated statement of condition for 2007, revealing yet another landmark year for the universal bank as loans grew an astounding 55% to PhP 52.01 billion at year-end from last year’s PhP 33.6 billion. This milestone marks a significant shift in the bank’s balance sheet expansion as loans now account for 41% of its P 128.3 billion in resources versus 28% a year earlier. Meanwhile, deposits grew 7% in 2007 to PhP 94.7 billion from the prior year’s PhP 88.8 billion as the bank focused on creating value and improving service for the mass-affluent market.
Security Bank President and Chief Executive Officer Alberto S. Villarosa heralded these cogent details and stated: “The senior management is pleased with the sterling growth of the bank’s loan portfolio and improved asset allocation as Security Bank continues to focus on profitability amidst an industry teeming with increased competition for customer share.” Mr. Villarosa delves further by explaining that while loan growth resulted from demand arising primarily from large local companies focusing on expansion, an estimated 15% of new loans are supporting small-to-medium sized enterprises and consumer spending.
The continued buildup and improved balance sheet profile underscores the company’s commitment to improving stockholder’s equity as the bank’s annualized return on average equity is 22% for 2007, an increase from last year’s 17%. This number forges Security Bank’s place as the top ROE bank among peers in the industry. Alongside its ROE, the bank also continues its improving trend in asset quality showing a 2007 yearend NPL ratio of 2.54%, an improvement from 2006’s 4.12%.
SECB will continue to leverage on the positive results of last year and will capitalize on even greater opportunities to improve the balance sheet mix in 2008. New products and services will be launched as the year rolls on along with consistent expansion of the auto finance program and consumer lending-related initiatives for the rest of the year.
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