The Security Banking Corp. (Security Bank) is one of the domestic commercial banks displaying an outstanding return-on-equity (ROE) performance.
In its nine-month financial performance report, it reflected practically a 20-percent ROE achieved on the back of a net income of P1.83 billion, up by P480 million vis-à-vis the P1.35 billion in the same period in 2006.
From cumulated data, Security Bank had the highest ROE among the banks listed at the Philippine Stock Exchnage (PSE).
Looking at the different statement of accounts, Security Bank reported a 19.96 percent ROE, better than the 16.42 percent of the Bank of the Philippine Islands (BPI), the 16.4 percent of the Development Bank of the Philippines (DBP), the 12.47 percent of the Rizal Commercial and Banking Corp. (RCBC), and the 12.24 percent of the Metropolitan Bank and Trust Co. (Metrobank).
Meanwhile, the 26-percent growth in loan portfolio to P42.3 billion propelled its year-to-date net interest income to P3.4 billion, or 25 percent better than the previous year.
“We have directed considerable focus and energy in shifting our business towards steadily building quality loan assets with an enhanced yield profile and leveraging on the customer relationships cultivated over the last few years to further improve the other income component of our business,” Security Bank president and chief executive officer Alberto S. Villarosa said in a earlier statement.
Other income performance likewise reflected substantial growth increasing 15 percent to P2.1 billion by the end of the third quarter 2007.
Security Bank chief financial officer Carlos M. Borromeo said the bank achieved a P217 million, for a 51-percent growth in service charges to P648 million.
“We have also reflected a 69-percent increase in miscellaneous income to P450 million with reduction in asset disposal losses that characterized the same nine month period the previous year,” Borromeo added.
The healthy growth in these other income components offset the 12 percent reduction in foreign exchange and trading gains to close the period at P959 million.
Operating expenses registered at P3.2 billion arising from a combination of investments in the bank’s workforce and one-time expenses.
Aside from the significant shareholder return achieved, it leveraged on its asset base, accomplishing an average return on assets of 1.8 percent.
The combined results translate to earnings per share for the nine-month period of P5.56 per share versus P4.11 per share in the prior year. The bank continues to register superior results which have resulted in a 16 percent increase in its share price from P65.50 per share end 2006 to the current level of P76. – Ted Torres