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Bacolod City, PhilippinesThursday, February 2, 2012
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Security Bank gets 25% ROE

Security Bank Corporation released its unaudited 2011 full year results showing a net income of P6.7 billion and a return on equity of 25.0 percent, exceeding its targets for the year, a press release from the firm said.

The bank’s total assets expanded by 30 percent to P215 billion, with the loan portfolio reflecting a 24 percent increase to P92.0 billion as of year-end, spurred by strong credit demand in the top corporate and middle market segments, the press release said.

With the asset growth from loans and investments, net interest income likewise grew 24 percent to P7.5 billion this translated to a healthy net interest margin of 4.1 percent.

This strong core revenue performance was complemented by service charges and foreign exchange income growing by PhP 171.3 million or 11 percent, which compensated for lower trading gains.

Security Bank president and chief executive officer Alberto Villarosa saidd: “We clearly surpassed our targets for the year aided by a bullishness that is evident in the renewed investor confidence in the country with unprecedented loan growth not only for our bank but also for the rest of the industry. Our full year performance was likewise enhanced by a favorable emerging bond market as it benefited our efforts at managing the interest rate and duration profile of our investment portfolio. We attribute our outstanding accomplishments to the continued trust, support and confidence of our customers and business partners and to the commitment, dedication and execution skills of our management and staff,” he added, in the press release.

The bank’s continued emphasis on cost efficiency is reflected in its cost to income ratio of 37.4 percent for 2011, based on operating expenses, excluding provisions and impairment losses, amounting to PhP 4.4 billion.

Security Bank’s asset quality numbers remain healthy with non-performing loan (NPL) ratio of less than 1m percent and a reserve cover of 308 percent. The bank’s capital adequacy ratio (CAR) of 20.3 percent demonstrates a capital base capable of supporting further expansion and growth.

Recently, Security Bank was cited Best Banking Group in the Philippines at the World Finance Banking Awards and ranked by Asian Banker as the best for achieving the highest return on assets in all of Asia, as well as the third strongest bank in the Philippines, the press release added.*

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