Security Bank sees modest income growth

The Security Bank Corp. is looking at a modest growth in net income this year as it continues to improve its internal capabilities in preparation for a more robust economy.

In line with this, the bank has set aside a capital expenditure (capex ) budget of P275 million this year, up from P200 million last year.

"Since 1999, we decided to achieve organic growth first to make sure that every peso we put into the balance sheet is of the right quality. It will continue up to 2002 under our strategic plan," Security Bank president Rafael F. Simpao Jr. said in an interview.

Next month, Security Bank will launch its mobile and phone banking capabilities.

Loan growth is seen to increase by 10 percent this year while the level of non-performing loans (NPLs) is projected to remain at 10.4 percent, well below the industry average.

Simpao said they are not in any acquisition mode and neither are they increasing the bank’s capital base this year.

The owners of Security Bank include Frederick Dy who has a 44-percent stake while several Taiwan-based investors have a combined 12-percent equity.

"Our stockholders want to increase the authorized capital to P10 billion from the present P8.7 billion but we decided against it for the meantime," he said during the press launch of Security Bank’s Internet banking facility called the Digibanker.

Among the bank’s plans for the year is the full integration and automation of all its operational systems including loans, trade and the ATM.

Security Bank will also launch its new credit card with MasterCard while it continues to market its Diners Club brand.

It has a total of 128 branches nationwide and is ranked ninth among the country’s commercial banking sector.