Security Bank Leads Industry ROE

Security Bank and its Subsidiaries and Affiliates (PSE: SECB) recently published its Statement of Condition for the year ending December 31, 2009, reflecting an improvement in average return on equity to 20.9% from last year”s 19.2%, maintaining its leadership among private domestic universal banks in terms of returns to shareholders. 

These results were achieved on the back of an asset base of P146.3 billion, a growth of P8.1 billion or 5.8% from the same period last year.  The bank continued to focus on its lending activities with Loans comprising 51.3% of total assets as the bank continues to diversify its commercial and corporate banking portfolio. The growth in assets was funded primarily from deposits which were up 4.3% or P4.5 billion.  More significantly, the bank registered a P11.4 billion or 15.5% jump in its demand and savings deposits, vis-?-vis December 2008. Capital funds stood at P17.8 billion, up by almost P5.1 billion. This included the proceeds raised from its successful Stock Rights Offering concluded in November 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.

Security Bank Corporation President and Chief Executive Officer, Mr. Alberto S. Villarosa explained: “Our goal of focusing on growing our core business alongside prudent management of risks has been successful as seen in our sound balance sheet. This gives us better leverage to explore the opportunities as they arise.”

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.