Security Bank Corporation has launched a public offer of its Basel III Tier 2 notes amounting to P10 billion.
Tier 2 notes are investment instruments that offer returns higher than most other instruments in the market.
The notes have a term of 10 years, (with an issuer’s call option after five years) and may be purchased in minimum denominations of P500,000 and in increments of P100,000. The interest on the notes will be paid quarterly.
Security Bank is issuing the notes to further support the continuing growth of the bank’s financial assets.
And scanning the bank’s performance over the past few years, these notes are, as they say, a sure investment bet
After all, Security Bank is the only one among the country’s largest banks to register higher profits in the first quarter of 2014 compared to the same period last year,
Prior to 2013, from 2007 to 2012, it ranked first in return on shareholders’ equity, return on assets, return on shareholders’ equity, cost to income ratio, asset quality having the lowest non-performing loans ratio, and also leads in terms of NPL reserve cover ratio.
In the last two years, the bank invested in the expansion of its branch network and retail banking business to drive future revenues.
Underlining its value to the Philippine market, Security Bank is an independent bank with core franchises in corporate and investment banking, commercial and retail banking, and financial markets, with a solid niche among the affluent Filipino-Chinese community.
Security Bank grew faster than the Philippine universal banking industry in the last five years
It had a annual growth rate of 24 percent for its total assets and loan portfolio, versus 15-and 14-percent, respectively, for the industry.
Deposits grew at a compounded annual growth rate of 17 percent versus industry’s 15 percent.
Capital grew by a compounded annual growth rate of 23 percent versus industry’s 16 percent on account of strong earnings.
It also had a stable, well-diversified funding base anchored on a deposit base of P206 billion as of year-end 2013, capital of P41 billion.
Low-cost CASA deposits amounted to P130 billion, accounting for 37 percent of the bank’s funding. The bank is known for its capital strength, operating at capital adequacy ratios that are comfortably above the minimum requirements of the Bangko Sentral Ng Pilipinas.
Also, Security Bank is known in the market for its superior asset quality.
NPL ratio and non-performing assets ratios are consistently lower than industry average, reflecting the bank’s conservative credit culture.
Security Bank is a highly awarded and well-recognized brand. It takes pride in the fact that its strategy, execution and results over the years have been recognized by reputable organizations and publications around the world.
The bank’s strategy for sustainable growth is simple, and that is, to stick to, and further build on its strengths and disciplines that have made it the strong, sound and well-managed bank that it is today.
Security Bank continues to play a unique role as an independent bank that is fully focused on the customers’ financial well-being.
With a focused strategy, disciplined execution and superior results, Security Bank has through the years built a reputation as a strong, sound, well-managed bank that will be there for customers through generations.
On becoming a serious player
Philippine Veterans Bank chairman Roberto de Ocampo has very huge aspirations for the private commercial bank owned by some 400,000 World War II veterans and their heirs.
When he assumed the post less than a year ago, he said his term marked “a fresh new beginning for PVB, with the aim of revitalizing the medium-sized commercial bank to be an active major player in the banking industry, not just locally but globally as well.”
So what has happened since then?
Well, De Ocampo and the board have reorganized the bank from top to bottom. A new president was named, veteran banker Joey Bermudez, who aims to transform this commercial bank into a “game-changer.”
De Ocampo said that Bermudez will have a crucial role in turning the bank into a major player in the industry with the introduction of innovations in consumer finance and commercial lending.
PVB is currently the only commercial bank that can service government accounts. In fact, government funds still account for a huge chunk of bank deposits.
According to De Ocampo, one of the areas that they will be developing is in the area of mortgage loans and consumer lending.
And of course, the goal is to transform bank later on into a universal bank which Ocampo said, would require an additional half a billion in capitalization.
He admits that right now, it would be difficult to compete head on with the bigger banks, admitting that a lot still needs to be done in order for Veterans Bank to be considered a serious player in the highly competitive banking sector even if it already made some profit last year, and though its NPL and NPA ratios are still manageable.
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