CEBU, Philippines - Security Bank Corporation (PSE: SECB), during its annual stockholders’ meeting on Tuesday, May 29, 2012, informed its shareholders that it sustained its financial performance in 2011 with a strong 29% expansion of its balance sheet anchored on a hefty 23% growth in the loan portfolio, a net income of P 6.7 billion, and a return on equity (ROE) of 24.6% for which Security Bank continues to have the best ROE in the Philippine commercial banking industry in the past several years.
Security Bank President and Chief Executive Officer Mr. Alberto Villarosa cited focused execution of the Bank’s growth targets hand-in-hand with the unwavering commitment to maintaining superior returns and maximizing shareholder value as fundamental to the successful results in 2011.
In Mr. Villarosa’s management report, he said that the Bank’s total resources increased to P 215 billion and the loan portfolio to P 92 billion at year-end, bolstered by a positive investment climate and strong credit demand in the top corporate and middle market segments. Asset quality remained strong as the non-performing loans ratio was steady at 0.9%. As such, net interest income increased by 24% to P 7.5 billion.
Total operating income was P 11.7 billion with strong contribution from the Bank’s trading businesses which contributed P 2.5 billion and other income which contributed P 1.6 billion. The Bank maintained its cost discipline with a reduction of its total operating expenses, net of provisions and impairment by 8.6% from 2010 level. Its cost-to-income ratio was 36.9%, which is half that of the banking industry.
Mr. Villarosa likewise reported key highlights for the year with branch expansion being pursued in the restricted areas in Metro Manila, the acquisition and integration of Premiere Development Bank, which will be renamed Security Bank Savings; the joint venture with Marubeni for the set-up of a leasing business, and the successful offering of Long-term Negotiable Certificates of Deposits (LTNCD) last February 2012 which raised P 5 billion.