Security Bank to pursue goals aggressively

Security Bank will more aggressively pursue its business objectives following the Monetary Board’s approval of its application to raise its capital by up to P3 billion through the issuance of unsecured subordinated notes.

Rafael F. Simpao, Jr., president and chief executive officer of Security Bank, said the Tier 2 capital increase will further strengthen the bank which as of now already has a capital adequacy ratio of 15 percent. The required minimum is 10 percent.

"With a bigger capital base, we are able to further strengthen our balance sheet and expand our business initiatives," he said. "The additional capital will make the bank more flexible in addressing opportunities and situations."

Security Bank expects to float its notes before the end of the year. ING Bank N.V. has been appointed lead arranger and market maker.

The bank, controlled by the family of chairman Frederick Y. Dy, is strategically poised for growth and is looking at steady growth in earnings in the coming years as it targets market share expansion through its customer-focused initiatives.

"Management has taken the critical steps to make the bank strong, efficient, competitive, and profitable, and raising our capital is an identified initiative that will further improve earnings and enhance value for our shareholders," he said.

"Security Bank," he said, ‘continues to invest in technology and in people to deliver differentiated quality service to its customers."

"A bank is as strong as its management, manpower, equipment and systems. Its service is the manifestation of all these. We are continuously looking for better ways to satisfy the needs and exceed the expectations of our clients," he said.

The bank earned a net income of P549 million for the first three quarters of the year, surpassing the 2002 net income of P508 million. Its January-September net income last year stood at P413 million.