Security Bank rakes P1.72B in September

Amid the turbulent global financial markets, one of the country’s large universal banks, Security Bank (SECB) reported a 19.3 percent return of equity result as of September 2008.                                                                                                               

In the bank's official third quarter report, it announced that SECB sustained exemplary shareholder value with its September year-to-date results registering a net income of P1.72 billion, a six percent lower than the comparative period last year.

"This has certainly been a very challenging period for businesses across the board. We are nevertheless pleased that the efforts we exerted in building core revenues and other income streams have helped in softening the adverse impact on securities markets brought about the global financial turmoil that began in the US and Europe," said SECB president and chief executive officer (CEO) Alberto S. Villarosa.

Security Bank's year balance sheet at end September 2008 stood at P144.1 billion, 12 percent higher than the P128.6 billion recorded at end December 2007.

"Our balance sheet growth was largely driven by a noteworthy 18 percent growth in our loan portfolio to close the period at P61.6 billion despite the current economic environment," said SECB chief financial officer (CFO) Carlos Borromeo, explaining the bank's balance sheet against the backdrop of its net income performance.

The growth in the balance sheet along with the increased allocation towards lending, which now accounts for 43 percent of the bank's total assets, was accomplished while further improving asset quality as its non-performing loans ratio is pegged at 1.3 percent from the 2007 year-end level of 2.6 percent.

Non-performing loans (NPL) likewise grew even stronger at 266 percent versus the 181 percent reflected at the end of last year. Security Bank's capital adequacy remains quite strong at 13.7 percent providing a healthy cushion over the regulatory minimum of 10 percent.

Most banks in the country are disclosing healthy performances, including SECB despite the recent fall out of the United States’ investment banking giant Lehman Brothers.—Ehda M. Dagooc