Security Bank sees15% income growth this year

After breaching the billion- peso net income level last year, Security Banking Corp. is confident of an "achievable" 15-percent profit growth this year, bank officials said.

During its annual stockholders’ meeting yesterday, Security Bank officials said growth would come from a three-pronged focus on corporate, consumer and investment markets, despite worries on the threats of continued increases in US interest rates.

"A 15-percent growth in net income is achievable despite a lethargic corporate lending environment," Security Bank chief financial officer Carlos M. Borromeo said.

Last year, the bank recorded net earnings of P1.156 billion from P768 million in 2004. The year before, income was reported at P506 million, and P385 million in 2002.

Likewise, assets grew progressively from P64 billion in 2001 to P726 billion in 2003. Last year, it ballooned to P105 billion.

Return on equity (ROE) improved from 3.2 percent in 2001 to 13.4 percent last year, again the first time in double-digit level. Conversely, its non-performing loan (NPL) ratio started with a double-digit 10.2 percent in 2001 to just 5.3 percent last year.

Investments expanded from P9.8 billion in 2003 to P38.4 billion last year although deposits registered a more modest growth to P66.2 billion last year from P54 billion the year before.

Meanwhile, Security Bank chairman Frederick Y. Dy said they remainopen to acquisitions of other commercial banks "with a substantial customer base." In fact, several banks had already underwent scrutiny but failed to met their grade of strategic significance.

Meanwhile, Borromeo sees signs of recovery with the potential of a significant growth in corporate lending in 2007, but consumer banking continues its forward thrust.

"We are sensing interest in corporate lending. There are signs of recovery especially in the property sector as the occupancy rates continue moving up," Boromeo said. "The growth of the call center or outsourcing sector is helping the property sector as well as remittances."

Another proof of growth is the noticeable acquisition of properties by overseas Filipino workers (OFWs) and migrant Filipinos. The potentials are so strong that property developers are even sending their sales representatives to the place of employment or residence of overseas Filipinos.