Security Bank confident of surpassing 2014 results

MANILA, Philippines - With its consumer loan portfolio expanding 90 percent, Security Banking Corp. is confident it will outdo 2014 in terms of net earnings and loan growth.

Security Bank president and chief executive officer Alfonso L. Salcedo Jr. said the bank’s core business has been strong despite the poor contribution of trading and securities gain to the bottom line.

“So far, retail banking of Security Bank is growing well at roughly 60 percent, with deposits up nearly 20 percent and lending grew 90 percent in the first semester,” Salcedo said.

Mortgage loans accounts for 70 percent of portfolio, yet auto loans grew by over 50 percent and cards business slightly 50 percent.

“Auto has surprised us; in fact, the demand has outstripped our capacity,” he added.

Retail lending accounts for 10 percent of total portolio, but it is the fastest growing at a rate of over 50 percent. And commercial or middle market lending is growing faster than corporate lending, which still leads in terms of value.

“Growth is coming from the right segments,” Salcedo stressed.

Security Bank is looking to grow its loan books either by an annual average of 20 percent, or modestly double it within five years.

Total loan portfolio stood at over P220 billion in the third quarter, and it is forecast to hit P240 billion end of December.

With strong growth from deposits and lending, the bank is confident that it would outperform the 2014 income of P7.2 billion.

Last year, net income grew by 43 percent from P5 billion to P7.2 billion, resulting on a 16.3-percent return on shareholders’ equity (ROE).

In the first six months of the year, the bank posted P4.657 billion in net income, representing 29-percent year-on-year growth and a 19 percent return on ROE.