Security Bank named Bank of the Year

MANILA, Philippines - The Banker, one of the world’s most respected banking magazines published by the Financial Times of London, has bestowed on Security Bank Corp. (SBC) one of the world’s most prominent and sought-after accolades, the “2012 Bank of the Year Award for the Philippines.”

The Bank of the Year Awards is an annual event that promotes industry-wide excellence in the global banking community by recognizing the top financial institutions in the world. Judges select only one bank from each country, making it the most sought-after award across the globe. Being named “Bank of the Year” by The Banker Magazine is a testament to the strong management, sound business model and prudent risk approach of each chosen institution. 

“We are honored to have been bestowed this prestigious award as it now places us among the world’s most elite financial institutions. The Bank has always focused on its core strengths that have allowed us to sustain a track record of strong financial and business performance. One most recent example was our third quarter financial results which show the bank generated a net income of P6.2 billion representing an increase of 55 percent year on year, plus our return on equity (ROE) consistently remains one of the highest, if not the highest, in the country,” said Alberto Villarosa, president and CEO of Security Bank.

For the last three years, the bank has been consistently improving its financial indicators. Security Bank earned P6.7 billion in 2011 with a return on equity (ROE) of 25 percent outpacing the industry average of 12.14 percent. Return on Asset (ROA) was at 3.5 percent versus average of 1.46 percent among the universal and commercial banking industry in the country.

This strong performance was sustained during the latest third quarter performance report of 2012 with a net income at P6.2 billion representing a 55 percent year on year increase while return on equity (ROE) at 25 percent is one of the highest in the industry which averages around 12 percent. The bank has been consistent over the last three years wherein its ROE has been within the 25 percent to 30 percent range.

In bestowing the award to Security Bank, The Banker cites that, in the past year, Security Bank has emerged as a competitive player in the local banking and finance industry, following its acquisition of consumer and savings specialist Premiere Development Bank and a loan growth of 24 percent as the bank focused on its corporate and small-medium enterprise customers and the loans went to the infrastructure, energy, retail, real estate and mining sectors. The bank is operating in a market that is entering a phase of infrastructure development and it is seeking to keep pace with these investments in the Philippines.

The Banker further cited that Security Bank also took a leading position in the equity and debt capital markets and was involved in a number of landmark big-ticket deals in the country such as the government’s P323 billion bond swap and the P16 billion secondary offerings of San Miguel Corp.

 The bank was also involved in a $220 million 12-year mezzanine loan facility for Team Energy, as well as P11.5 billion and P11 billion corporate notes, respectively, of MTD Manila Expressways and South Luzon Tollways Corp. 

Aside from having an active involvement in the capital markets in the Philippines, Security Bank also focused on other areas like rolling out new treasury hedge products to address the heightened market volatility, as well as a range of foreign exchange products.