SECURITY Bank Corp., the country’s sixth largest lender, plans to surpass this year the P7.7-billion net income posted in 2015, especially after sealing in January a strategic partnership with Bank of Tokyo Mitsubishi UFG Ltd., Japan’s biggest bank.
Bank president and chief executive Alfonso Salcedo Jr. declined to give an income guidance this year but said the bank would eclipse the net profit registered a year ago based on the early performance.
“We are not giving an income target but we look at net income this year higher than last year’s. The [coming presidential] elections will not have an impact to the bank’s growth,” Salcedo said in a briefing after the annual stockholders’ meeting held in Makati City Tuesday.
Salcedo said the bank would leverage on the partnership with BTMU, with Japanese clients in the Philippines given an easy access to Security Bank products.
“This alliance will serve our clients better… Security Bank is now a stronger local bank with access to BTMU services,” Salcedo said.
He said to better corner a large portion of Japanese clients in the Philippines, Security Bank would embark on an aggressive branch expansion program inside economic zones and industrial estates in the Philippines, which is part of the 500 to 600 total branches nationwide planned by 2020.
Salcedo said Security Bank had just opened a branch inside the Carmelray 2 industrial park in Calamba, Laguna, the first to serve Japanese clients in in an economic zone.
Bank chairman Alberto Villarosa said the bank remained bullish regardless of whoever wins in the coming presidential elections.
“All of the candidates mean business and expected to execute their plans for the country. We are very bullish on the business prospects even after the elections,” Villarosa said.
Salcedo said Japanese companies would continue to be upbeat about the Philippines, taking advantage of the country’s English-speaking labor force.
“We also want to grow our personal and salary loans portfolio this year through the Japanese clients,” Salcedo said. “We are also targeting the small business loans,” he said.
Salcedo said of the 500 to 600 total branches planned by 2020, two-thirds would be located in the provinces while one-third would be in Metro Manila.
Salcedo said Security Bank remained upbeat on the first-quarter results, although not citing any figures.
Security Bank’s net income in 2015 climbed 7 percent year-on-year to a record P7.7 billion on sustained growth of loans and deposits. The profit translated into a 15.2-percent return on shareholders’ equity.
Its three core business—wholesale banking, retail banking and financial markets/treasury-all contributed to produce record net profits last year.
Loans increased 24 percent to P240 billion, while deposits grew 17 percent to P290 billion. Corporate and commercial loans increased 21 percent year-on-year. Key consumer loan portfolios composed of home and auto loans and credit card receivables rose 67 percent.
Total assets jumped 34 percent to P532 billion as of end-2015.