29 April 2014, Makati, Philippines. During the annual stockholders’ meeting of Security Bank Corporation (PSE: SECB) on Tuesday, April 29, 2014, Security Bank President and Chief Executive Officer Mr. Alberto S. Villarosa highlighted the robust growth in the Bank’s core business and balance sheet in 2013. Total resources grew by 34% to reach an all-time high of Php 347.5 billion at year-end 2013. Loan portfolio growth was 38% as retail, commercial, and corporate loan demand was strong. Asset quality remained superior with the non-performing loans (NPL) ratio at 0.11%, while the NPL reserve cover remained among the highest in the industry at 195%. 36 new branches were opened during the year, bringing the Bank’s network to 244 branches at year-end 2013. Deposits grew by a record 45% driven by investments in the sales force and branch network. 2013 saw the execution of key retail bank initiatives with the goal of establishing the retail segment as one of the Bank’s major business pillars. Amidst this business expansion, the Bank earned Php 5 billion in net income, with return on shareholders’ equity of 13%.
In the first quarter of 2014, Security Bank reported net income of Php 1.43 billion, representing 17% year-on-year increase, driven by 42% growth in net interest income. The return on shareholders’ equity was at 13.8% for the first quarter of 2014.
In response to reporters’ queries, Mr. Villarosa said, “We continue to grow our core business and expand our balance sheet profitably. To complement our strengths in the corporate, commercial and financial market businesses, we have accelerated the journey towards comprehensive retail bank transformation which we started in 2012 to make banking easier and better for our customers. Superior customer experience is the anchor of our value proposition to our target retail markets.”
Security Bank’s total resources grew to Php 377 billion as of March 31, 2014 representing 46% year-on-year growth. Loan portfolio was Php 166 billion for a 39% year-on-year growth. Deposits increased to Php 211 billion, 49% year-on-year growth. Capital grew by 11% year-on-year to Php 42 billion as of March 31, 2014.
Security Bank recently received Bangko Sentral Ng Pilipinas (BSP) approval of the regular semestral cash dividend of Php 0.50 per share and a special cash dividend of Php 0.50 per share earlier declared by the Bank’s Board on March 25, 2014. The record date for the Php 1.00 per share cash dividend is May 7, 2014 and the payment date is June 2, 2014.
During the stockholders’ meeting and the ensuing organizational board meeting, the following were elected to the Board of Directors: Frederick Y. Dy as Chairman, Paul Y. Ung as Vice Chairman, and Diana P. Aguilar, Anastasia Y. Dy, Jose R. Facundo, Eduardo I. Plana, Rafael F. Simpao, Jr., Alberto S. Villarosa as directors, and Philip T. Ang, James JK Hung, and Joseph R. Higdon as independent directors.
In 2014, Security Bank was the recipient of awards such as “Best Cash Management Solution” and “Best Service Provider and eSolutions Partner Bank” in the Philippines by The Asset; “Excellence in Payment Innovation” by The Retail Banker International; “Best Investor Relations Company” and “Best CEO (Investor Relations)” by Corporate Governance Asia of Hong Kong; and cited as “Best Investor Relations Company” by FinanceAsia. In 2013, the Bank was recipient of key awards such as “Best Managed Bank in the Philippines” by The Asian Banker; “Best Domestic Bank”, “Best Domestic Debt House”, and “Best Overall Domestic Provider of FX Services” in the Philippines by Asiamoney; and “Best e-Banking Implementation Solution in the Philippines for Cebu Pacific Air” and “Best Service Provider and eSolutions Partner Bank in the Philippines” by The Asset.