Security Bank sees flat earnings

The Security Bank Corp. is projecting a net income of P430 million this year, up by a mere two percent from its P422-million net income in 2000. The figure in 1999 was P412 million.

For the first half this year, the bank estimates its net profit to hit P235 million, a fraction better than the P227 million registered in the same period last year.

Bank president Rafael F. Simpao Jr. said the flat earnings reflect the sluggish economy, with the entire industry estimated to grow by a modest five percent this year.

Nevertheless, Simpao said he is happy with their performance.

"Remember that practically all of the country’s commercial banks reported a drop in net earnings last year, and the economy has not picked up yet," Simpao told newsmen during the formal launching yesterday of the Diners Club Premiere Credit Card.

Security Bank’s loan portfolio from January to June this year reached P33 billion while deposits hit P46 billion for a loan-to-deposit ratio of less than 80 percent. "That is almost flat to minimal compared to the same period in 2000," bank officials said.

The bank’s non-performing loans (NPLs) remained at a safe 10.4 percent while its non-performing assets (NPAs) reached 16 percent. It set an NPL cover of 55 percent in the first six months of the year and this will be increased to 60 percent in the second half.

Security Bank’s biggest stockholder is Frederick Dy who has a 44-percent stake while Taiwan-based investors have a combined 12-percent equity. – Ted Torres