SECURITY Bank Corp. has closed the offer period on its seven-year long-term negotiable certificates of deposits (LTNCDs) earlier than the original Feb. 10, 2012 closing date due to oversubscription.
Raul Pedro, Security Bank’s Treasurer, said, “This offering is unprecedented in the Philippine banking history as it is the first ever seven-year LTNCD to be offered in the country. We thank our clients for their strong reception for our LTNCDs. We undertook this endeavor because we believe that there is a strong demand in the market for alternative investment instruments that could deliver higher yields. Clearly, the market’s appetite for our LTNCDs confirmed that and their response was encouraging.”
LTNCDs are negotiable certificates of deposit indicating an amount of indebtedness of a bank with a designated maturity. The LTNCDs form part of a bank’s deposits, are insured with the Philippine Deposit Insurance Corp., and rank senior to all unsecured and subordinated debts and all classes of equity securities. The issue date for the LTNCDs is on Feb. 17, 2012.
Deutsche Bank, AG Manila Branch and Standard Chartered Bank acted as joint lead arrangers and selling agents for the transaction. Multinational Investment Bancorporation also acted as a selling agent.
Security Bank this week reported an unaudited net income of P6.7 billion and a return on equity (ROE) at 25 percent for the full year 2011.
The bank reported that its total assets expanded by 30 percent to P215 billion. It attributed its loan portfolio improving 24 percent to P92 billion to strong credit demand in the top corporate and middle market segments.
With the asset growth from loans and investments, net interest income also grew 24 percent to P7.5 billion.
This translated to a net interest margin (NIM) of 4.1 percent. This strong core revenue performance was complemented by service charges and foreign exchange income growing by P171.3 million or 11 percent which compensated for lower trading gains.
Security Bank President and Chief Executive Officer Alberto Villarosa said, “The success of our LTNCD offering is credited to the strong support of our clients and it is a testament to our willingness to develop the kind of products that cater to the needs of the market. We are encouraged even further as it comes on the heels of a year during which we clearly surpassed our targets. We thank our astute customers and discerning business partners for their continued trust, support and confidence in the bank. We assure them that we would reciprocate with our enduring commitment and dedication.”
Security Bank’s asset quality numbers remain healthy with non-performing loan ratio of less than one percent and a reserve cover of 308 percent. The bank’s capital adequacy ratio of 20.3 percent demonstrates a capital base capable of supporting further expansion and growth.
