Security Bank Corporation (PSE: SECB) achieves record earnings as it reported a
net income of P 3.06 billion for 2009. The bank likewise maintains its
leadership among private domestic universal banks in providing shareholders the
highest return on equity with an average return on equity of 20.9%, up from the
19.2 % recorded a year earlier.
Mr. Alberto S. Villarosa, President and Chief Executive Officer, disclosed: “Our
continuing commitment to our shareholders is to maintain superior returns as we
continue to build the business. We are focused first and foremost on shareholder
value.”
The continued growth pace recorded by the bank was spurred by a 19.9% increase
in revenues over the same period last year to P 7.9 billion. The revenue growth
was achieved on two fronts. A 22.2% improvement in non-interest income arose
from growth in foreign exchange gains. Meanwhile net interest income grew by
19.2%, driven primarily by a healthy improvement in net interest margins which
stood at 4.5% at year-end versus the 4.0% achieved the prior year and a modest
growth in the balance sheet to 146.8 billion.
Security Bank continues to exhibit industry best asset quality indices as its
non-performing loans (NPL) ratio for the period was at 1.25% while its NPL cover
remains unparalleled at 292% at the end of December 2009. In view of the
earnings registered for the year coupled with the additional equity raised, the
Bank boasts of a fundamentally solid balance sheet as its Capital Adequacy Ratio
was at 18.4% at year-end.
Mr. Carlos M. Borromeo, Chief Financial Officer of the bank stated: “We have
dealt with the significant decline in interest rates quite admirably. Our net
margins improved; managed through a combination of a improvements in the mix of
earning assets and funded by a corresponding growth in lower cost deposits. “
The combined performance of revenue and operating expense components enabled a
robust increase in net income of P 3.06 billion net of minority interest in
consolidated subsidiaries. This equates to an annualized earnings per share of P
8.18, higher by P 1.17 or 16.7% than that recorded at year-end 2008.
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