Security Bank net profit drops to P5-B in 2013

Posted at 02/04/14 2:56 PM

MANILA, Philippines - Security Bank said its net income fell 33% to P5 billion in 2013 from P7.5 billion a year ago.

In a statement, Security Bank said its return on shareholders’ equity stood at 13% in 2013, lower than the 22% in 2012. The figures were based on the unaudited statement of condition as of December 31, 2013 submitted to the Bangko Sentral ng Pilipinas (BSP).

"Our core business remains strong and continues to grow alongside the buoyant Philippine economy. We have made substantial investments in developing our Retail Bank and Asset Management business. Our intent is to develop our retail business to become a meaningful pillar to complement our financial markets and wholesale businesses," said Security Bank President and Chief Executive Officer Alberto S. Villarosa in a statement.

Security Bank said its total resources went up 34% to P348 billion at the end of 2013 versus year-ago figures. The bank's loans also grew 38% to P165 billion while investment securities rose by 30% to P83 billion by year-end.

As of end December 2013, Security Bank said its non-performing loans (NPL) ratio stood at 0.08% and NPL cover at 195% (based on new definitions).

Total deposits jumped 45% to P206 billion, as 36 new branches opened in 2013. This brought the Security Bank group's branch network to 244 as of end 2013, including 204 Security Bank branches and 40 Security Bank Savings branches.

"Capital attributable to equity holders has grown by 11% to P40.8 billion. Our capital adequacy ratio (CAR) is at 15.5% after redeeming our Tier 2 Notes in December 2013 while Tier 1 CAR is at 15.1%, both above the BSP’s minimum requirements. We continue to maintain strong capital ratios and a solid balance sheet," said Security Bank Chief Financial Officer Mr. Joselito E. Mape.