Security Bank sees narrower profit
this year

SECURITY Bank Corp. is expecting to post a 15-percent improvement in net profit this year on the back of stronger prospects in consumer lending.
       “A 15-percent year-on-year growth is quite achievable,” said Security Bank chief financial officer Carlos Borromeo.
       In 2005, the bank registered last year a net income of P1.16 billion, representing a 50 percent increase over the previous year’s profit. It was also the second year that the bank posted a growth of at least 50 percent.
       Revenues increased by over P1.2 billion or 25.7 percent to P6 billion, outpacing the industry’s 15-percent growth.
       Security Bank chairman Frederick Dy said the company is committed to building a sustainable base of core earnings without compromising its asset quality.
       In line with this, the bank said it is open to acquiring other lenders, as long as the new acquisitions do not impair shareholders’ value. However, Security Bank has not found an attractive buy at the moment.
       “Unfortunately, all available investments are in bad shape. But we are studying our options. Our intent is to not reduce shareholders’ value,” said Dy.
       Security Bank’s share price as of end-March closed at P43.50 per share, reflecting a broader base of investor interest in the bank, said Dy.
       On Tuesday, Security Bank shares fell 1.01 percent to P49.
       “The aggressive tact we have taken in addressing impairment issues clearly placed us among the very best of the industry in terms of asset quality. The foresight with which improving dividend yield to 4.4 percent,” added Dy. Lenie Lectura