|
Security Bank Corporation (PSE: SECB) held its annual stockholders’ meeting last Tuesday, May 27, 2008. During the meeting, President and Chief Executive Officer Alberto S. Villarosa announced stellar results for 2007 as the bank recorded a net income of PhP 2.7 billion, a 42.5% or Php 807.3 million growth over last year’s numbers. Consequently, the bank’s return on equity (ROE) gained 5 percentage points from 2006’s 17% to year-end 2007’s 22% to propel the bank to the top of universal bank rankings in this important industry figure. These positive numbers were anchored on the remarkable 55% growth in its loan portfolio totaling PhP 52.0 billion vis-à-vis the PhP 33.6 billion recorded in 2006. The increased asset allocation to loans helped propel SECB’s net interest income to PhP 4.6 billion or 11.6% higher year-on-year. Meanwhile, an anticipated slow down in trading gains was offset by hefty increases in the bank’s other income which surged PhP 739 million or 29% year-on-year to Php 3.28 billion.
The past year’s results are the outcome of the proper execution of our corporate strategy. Mr. Villarosa further attributed the bank’s performance to the objective of steadily growing the portfolio and deepening relationships cultivated with established clients over the years. The shift in both the balance sheet profile and the earnings composition is aimed at growth in the core earnings.
In Mr. Villarosa’s management report, he emphasized the bank’s commitment to improve asset quality as manifested in the decline of the Non-performing loans (NPL) ratio to 2.6% from the previous year’s 4.2% along with improvement in the NPL cover to 185%, an increase from 155%. Excellent asset quality of the balance sheet that sustained organic growth over the last few years significantly strengthened the bank’s capital base as it gets ready for the implementation of Basel II with year-end 2007 Capital Adequacy Ratio (CAR) of 14.5%.
As of the end of the first quarter in 2008, Security Bank reported an annualized ROE of 26.6% for the period, higher than the 22% ROE registered at year-end 2007. The bank also maintains its positive bottom-line growth as net income grew 10.3% year-on-year to PhP 835.7 million.
Successful results enabled SECB to steadily increase its dividend payments. The board approved a regular cash dividend of PhP0.25 per share and a special cash dividend of PhP 0.75 per share for the first semester of 2008 with record date set on June 11 and payment date on July 7, 2008. SECB’s efforts at addressing shareholder value have not escaped international attention as the bank was cited as one of the companies that exhibited solid commitment to strong dividend payments.
During the stockholders’ meeting and the ensuing organizational board meeting, the following were re-elected to the Board of Directors: Frederick Y. Dy as Chairman, Paul Y. Ung as Vice Chairman, and Philip T. Ang, Anastasia Y. Dy, Jose R. Facundo, James JK Hung, Jose Perpetuo M. Lotilla, Fe T. Palileo, Eduardo I. Plana, Rafael F. Simpao, Jr. and Alberto S. Villarosa.
Queried further on the prospects for the remainder of the year, Mr. Villarosa stated: “Oil price increases and global food supply concerns have tempered the outlook for the Philippine economy with GDP projections for 2008 of 6.0% versus last year’s 30-year-high of 7.3%. This will therefore be a more challenging year for Philippine companies. However, Security Bank remains committed to its target of exemplary returns to its shareholders.”
|
