Security Bank bags half billion in earnings

Security Bank Corp. (Security Bank) registered a robust 24 percent improvement in net income last year.

Its deposit base grew 11.1 percent while loan volumes increased by 7.24 percent in the wake of increased loan origination and more active participation in term financing syndications for top-tier corporations.

Operating income, buoyed by trading gains and syndication-related fees, boosted other income sources by 35 percent to P1.58 billion from P1.17 billion last year.

Also making a strong contribution to the improvement in bottom line was a reduction in operating expenses of P100 million, 4.4 percent down from the 2001 level.

After provisions and taxes, Security Bank posted a net income figure of P528 million from P427 million the year before. Total resources totaled P68.8 billion.

By end 2002, net loans hit the P34.9 billion mark, with bank placements and investment securities amounting to P21.9 billion. Deposit liabilities amounted to P44.88 billion, while the consistent income performance sustained growth in capital funds, which now totals P9.55 billion.

It maintained non-performing loan ratio levels well below the industry average, while sustaining its loan loss provisioning activity in the fourth quarter.

Continuing to capitalize on investments made in acquiring top-rate talent and leading-edge technology over the past few years, Security Bank was able to come to market quickly with innovative e-services in 2002 and open doors to new markets and customers among large corporations.

On the retail side, focus on acquiring and retaining more profitable customers created strong growth in fee and commission income. Institutionalization of workplace efficiency improvement programs increased workforce productivity and paved the way for significant and sustainable reductions in the bank’s level of operating expenses.

"Our continued efforts at strengthening bank to better respond to challenges constantly arising in the Philippine economy have helped us sustain the improvement in our bottom line," Security Bank president Rafael F. Simpao Jr. remarked. "With new initiatives started in 2002 based on better execution of proven business models and key strategic alliances, we are committing ourselves to being consistent and improving on this success even further this year."