Asiamoney names Security Bank Best Domestic Bank

MANILA, Philippines - Security Bank Corp. was named “2013 Best Domestic Bank in the Philippines” during Asiamoney’s Annual Best Domestic Bank Awards.

Security Bank is following its own growth plan by building a bigger deposit base, which started in 2011 when the acquisition of Premiere Development Bank boosted its branch network to 208 by year-end of 2012, and growing its commercial loans business to take advantage of the booming economy.

The award-giving publication describes their criteria as comprehensive and thorough. “To make its decisions, Asiamoney holds discussions with fund managers, analysts and market participants, together with conducting extensive internal research. It considers the following criteria when deciding on the winners of best domestic bank awards: balance sheet strength and profitability; industry leadership and product innovation; brand recognition; successful implementation of new services and products; ability to outperform competition amid challenging financial markets;  corporate and customer satisfaction with services provided; corporate governance, transparency and integrity.”

Following this criteria, SBC posted stellar and “better-than-industry” numbers in 2012. With a P 7.5 billion net income, up 12 percent on the previous year, customer loans grew 30 percent to P119.6 billion and its cost-to-income ratio was 43 percent. The highlight is its return-on-equity with a whopping 22 percent.

“All of Security Bank’s key financial indicators are better than the industry; it has a high ROE, a good cost-to-income ratio of around 50 percent and a strong capital base,” says Jody Santiago, head of equity research for the Philippines at the Union Bank of Switzerland. It also had a capital adequacy ratio of 16.3 percent as of the end of 2012.

Likewise, SBC was also recognized for its continued impressive capabilities in the bond market. An eighth time winner of this award, the “Best Domestic Debt House in the Philippines” proves the sustained focus of the bank on its strengths amidst new accomplishments outside of bond distribution and trading and capital markets services.

“Security Bank has positioned itself as a mover in local markets by actively pursuing profitable opportunities in different areas and not just sticking to one focus. So far, the bank posted P1.2 billion in net income for the first quarter of 2013, up 11 percent year-on-year, while total assets grew 20 percent to P258.9 billion and deposits grew 22 percent to P141.8 billion,” cited by Asiamoney.

A leading regional financial publication, Asiamoney holds the Annual Editorial Awards every year to recognize domestic banks, equity brokerages and debt houses that stand out for excellent performance. In the past years, Security Bank has consistently figured in the awards for overall profitability.