Security Bank Grows Balance Sheet by 34%

Security Bank Corporation (PSE: SECB) reported 34% growth in total resources to P348 billion at the end of 2013 versus the prior year. Loans grew by 38% to P165 billion while investment securities grew by 30% to P83 billion by year-end. Asset quality remained healthy with non-performing loans (NPL) ratio of 0.08% and NPL cover of 195% (based on new definitions) as of December 2013.

Total deposits increased by 45% year-on-year to P206 billion, supported by the opening of 36 new branches in 2013, 34 of which were Security Bank branches and two branches were of thrift bank subsidiary Security Bank Savings (SBS). The Security Bank group had a total of 244 branches by year-end 2013, 204 SECB branches and 40 SBS branches. Over the past five years, the number of branches had more than doubled.

Security Bank President and Chief Executive Officer Mr. Alberto S. Villarosa said: “Our core business remains strong and continues to grow alongside the buoyant Philippine economy. We have made substantial investments in developing our Retail Bank and Asset Management business. Our intent is to develop our retail business to become a meaningful pillar to complement our financial markets and wholesale businesses, as well as improve our ability to provide products and services that respond to our clients’ needs.”

The Bank earned a net income attributable to equity holders of P5 billion and a return on shareholders’ equity of 13% in 2013 based on the unaudited statement of condition as of 31 December 2013 submitted to the Bangko Sentral ng Pilipinas (BSP).

Security Bank Chief Financial Officer Mr. Joselito E. Mape said, “Capital attributable to equity holders has grown by 11% to P40.8 billion. Our capital adequacy ratio (CAR) is at 15.5% after redeeming our Tier 2 Notes in December 2013 while Tier 1 CAR is at 15.1%, both above the BSP’s minimum requirements. We continue to maintain strong capital ratios and a solid balance sheet.”

Security Bank was recipient of key awards in 2013 such as “Best Domestic Bank”, “Best Domestic Debt House”, and “Best Overall Domestic Provider of FX Services” in the Philippines by Asiamoney; “Best Managed Bank in the Philippines” by The Asian Banker; Security DigiBanker, the Bank’s cash management system, as Best e-Banking Implementation Solution in the Philippines for Cebu Pacific Air and as Best Service Provider and eSolutions Partner Bank in the Philippines by The Asset.