Security Bank clears P7.5B in 2012
Donnabelle L. Gatdula (The Philippine Star) - February 5, 2013 - 12:00am

MANILA, Philippines - Security Bank Corp. (SBC) posted a record P7.5 billion income in 2012, a 12-percent increase from P6.7 billion in 2011, on the  back of heightened loan activities and higher trading gains.

In a statement, SBC said customer loans grew 30 percent to P119.6 billion while deposits increased 19 percent to P142.4 billion as of end-2012.

This translated to an eight-percent increase in net interest income despite the prevailing low interest rate environment, the monetary easing by the Bangko Sentral ng Pilipinas (BSP), the removal of interest paid on reserve requirements, and sale of securities by the bank. 

As a result, the net interest margin in 2012 was at 3.94 percent, slightly lower than the 4.08 percent in 2011.

Non-interest income increased 44 percent mainly due to higher trading gains on securities as well as fee-based income.

The cost-to-income ratio was 43.2 percent, higher than the 36.9 percent reported in 2011 as the bank embarked  branch expansion.

The bank ended the year with total assets of P259.5 billion on the back of strong macroeconomic fundamentals.

“We are pleased to achieve our financial and business results amidst increased competition even while we are investing to increase our branch network and customer coverage capabilities during this period of economic growth,” SBC president and chief executive officer Alberto S. Villarosa said.

The bank opened 34 new branches and ended 2012 with a network of 208 branches for both SBC and Security Bank Savings (formerly Premiere Development Bank which Security Bank acquired in February 2012).

SBC chief financial fficer Joselito E. Mape, for his part, said: “Our non-performing loan (NPL) ratio remained low at one while reserve cover was 213 percent.”

“Our capital adequacy ratio (CAR) of 16.3 percent and Tier 1 CAR of 14.7 percent reflect the higher loans and short-term treasury portfolio as of year-end 2012,” Mape said.

Prestigious international financial publication The Banker of the Financial Times of London awarded SBC with the “Bank of the Year” for the Philippines in 2012.

Last October, The Asian Banker  also named SBC as the “Strongest Bank in the Philippines” in 2012.

ALBERTO S ASIAN BANKER BANGKO SENTRAL BANK BANK OF THE YEAR BANKER OF THE FINANCIAL TIMES OF LONDON JOSELITO E LAST OCTOBER MAPE
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