Security Bank set to launch 2nd tranche of P10-B LTNCD

MANILA, Philippines - Security Banking Corp. will launch the second tranche of its P10-billion long-term negotiable certificates of deposit (LTNCD) within the next few months, the bank’s top executive said.

Security Bank president and chief executive officer Alberto S. Villarosa said they are timing the issuance as the attention of the market is focused on bond, debt or share offers.

 “We do not desperately need the funds, but our approved application from the Bangko Sentral ng Pilipinas (BSP) was to launch the offer within 2012,” Villarosa said.

The bank official added that the launch of the second tranche amounting to P5 billion would likely occur when the excitement of the other offers would have subsided.

The amount raised will help fund the bank’s lending activities for the rest of the year, Villarosa said.

“We have enough (capital) based on the initial reports of the BSP,” Villarosa added.

At the end of the first quarter this year, its capital adequacy ratio (CAR) was over 18 percent, and a return on equity of 14 percent. At the end of 2011, its ROE stood at 25 percent, while CAR was registered at 20.3 percent.

Security Bank is targeting this year a loan growth of between 15 to 20 percent, driven by borrowings from the middle market and corporate; and deposit growth of 15 percent.

The bank is targeting to grow its branch network to 253 by 2014. It presently has 181 branches and 255 automated teller machines (ATMs).

Meanwhile, Villarosa said the former Premiere Development Bank will soon change its corporate name to Security Bank Savings. Security Bank acquired the development bank from the Reyes clan last year. It operates 38 branches, 14 of which are presently in Metro Manila.

Villarosa explained that the thrift bank would assume most of the consumer banking activities presently handled by the universal bank.