Security Bank to open more branches this year

CEBU, Philippines - With the robust growth achieved by the bank in 2011, Security Bank Corporation announced to open up more branches this year, adding up to its total network of 180 branches across the country, including the outlets of Security Bank Savings.

Security Bank president Alberto Villarosa said that the banking industry in the country provides promising outlook with strong financial fundamentals in place, and the upswing economic condition.

In a recent press conference in Cebu, he said that by end of 2013, the bank’s network is expected to hit a total of 250 large part of the expansion will be on the universal bank operation.

 The bank during its recent stockholders meeting, informed its shareholders that it sustained its financial performance in 2011 with a strong 29 percent expansion of its balance sheet anchored on a hefty 23 percent growth in the loan portfolio, a net income of P 6.7 billion, and a return on equity (ROE) of 24.6 percent for which Security Bank continues to have the best ROE in the Philippine commercial banking industry in the past several years.

Villarosa cited focused execution of the Bank’s growth targets hand-in-hand with the unwavering commitment to maintaining superior returns and maximizing shareholder value as fundamental to the successful results in 2011.

In his management report, he said that the bank’s total resources increased to P 215 billion and the loan portfolio to P 92 billion at year-end, bolstered by a positive investment climate and strong credit demand in the top corporate and middle market segments.

Asset quality remained strong as the non-performing loans ratio was steady at 0.9 percent. As such, net interest income increased by 24 percent to P 7.5 billion. Total operating income was P 11.7 billion with strong contribution from the bank’s trading businesses which contributed P 2.5 billion and other income which contributed P 1.6 billion.

The bank maintained its cost discipline with a reduction of its total operating expenses, net of provisions and impairment by 8.6 percent from 2010 level. Its cost-to-income ratio was 36.9 percent, which is half that of the banking industry.

Likewise, he reported key highlights for the year with branch expansion being pursued in the restricted areas in Metro Manila, the acquisition and integration of Premiere Development Bank, which will be renamed Security Bank Savings; the joint venture with Marubeni for the set-up of a leasing business, and the successful offering of Long-term Negotiable Certificates of Deposits (LTNCD) last February 2012 which raised P 5 billion.

Villarosa emphasized that during this period, Security Bank will remain cognizant of growing the franchise without compromising the discipline imposed on costs as well as asset quality and credit criteria.

At the end of the First Quarter 2012, Security Bank reported a 20 percent increase in its loan portfolio to P 99 billion and a 22 percent increase in its net interest income to P 2 billion compared with the same period last year, reflecting the Bank’s focus on driving growth through its core businesses.

The bank reported a healthy increase of 12 percent in its total operating income of P 2.3 billion from the same period last year, and a net income of P 1.1 billion resulting to a 14.0 percent return on equity (ROE). - THE FREEMAN