Security Bank holds Annual Stockholders Meeting following announcements of record ROE results

Security Bank Corporation (PSE: SECB) lead by the Bank’s board of directors announced record results for 2009 last Tuesday, May 25, 2010 during their annual stockholders’ meeting. President and Chief Executive Officer Alberto S. Villarosa announced the Bank’s impressive Return on Equity of 20.9%, a result backed up by a 32.6% year-on-year growth in net income to finish the year 2009 at P3.1 billion.

The continued growth recorded by the bank was spurred by a 19.5% increase in revenues over the same period last year to P7.9 billion. The positive momentum was achieved in two fronts. A 20.3% improvement in non-interest income arose from growth in Foreign Exchange gains. On the other hand, net interest income grew by 19.3% driven by a healthy net interest margin which stood at 4.5% at year-end versus the 4.0% achieved the prior year and a modest growth in the balance sheet at P146.3 billion.

Mr. Villarosa, President and Chief Executive Officer, cited proper execution of the Bank’s growth targets hand-in-hand with the unwavering commitment to maintaining superior returns and maximum shareholder value as fundamental to 2009’s successful results.

In Mr. Villarosa’s management report, he emphasized the bank’s commitment to maintain industry-best asset quality levels as manifested in the Bank’s steady Non-performing loans (NPL) ratio of 1.3% while its NPL cover remains unparalleled at 296% at the end of December 2009. Excellent asset quality of the balance sheet that sustained organic growth over the last few years significantly strengthened the bank’s capital base with a year-end 2009 Capital Adequacy Ratio (CAR) of 18.4%.

At the end of the First Quarter 2010, Security Bank reported an annualized ROE of 20.1% for the period. Successful results enabled SECB to maintain strong dividend payments. The board has 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 2010 with May 26, 2010 as record date and June 22, 2010 as payment date.

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: ?Notwithstanding continued concerns over the global economy, we are optimistic that the Philippine economy and the banking industry will continue the upward trajectory in 2010. The bank along with the board and officers’ combined positive efforts have paved way to what is seen to be another positive year based on our performance in the first quarter. We are confident in attaining our targets for the year 2010.?