Security Bank Corp., the seventh-largest lender in terms of assets, said Wednesday it successfully raised P2.07 billion from its offering of long-term negotiable certificates of deposit on the back of strong demand from investors.
The bank said in a disclosure to the stock exchange Wednesday the amount exceeded the original offer of P1 billion. The offering followed the P2.31-billion tranche issued in December 2019.
“The P2.07 billion drawdown marks the third tranche of SECB’s P20 billion approval from the Bangko Sentral ng Pilipinas. The issue date is set to today, Feb. 5, 2020, with Aug. 5, 2025 as maturity date,” it said.
“The LTNCD issuance is part of the bank’s efforts to diversify its funding sources and support business expansion plans,” it said.
Multinational Investment Bancorporation acted as the sole lead arranger and selling agent, assisted by Security Bank.
LTNCD is a bank product issued by local banks and offered to investors looking for a relatively safe investment asset. Compared to a regular savings account or short-term time deposit, the LTNCD offers much higher interest rate.
Security Bank is one of the largest banks in the country in terms of assets, loans, deposits and branch network.
The bank booked a net income of P2.74 billion in the third quarter of 2019, up 22 percent from P2.246 billion a year ago on the sustained strength of loans and deposits.
The figure brought net income in the first nine months to P7.695 billion, up 18 percent from P6.539 billion in the same period in 2018.
Return on assets was at 1.33 percent, while return on equity stood at 8.14 percent.
Net interest income from customer loans and deposits climbed 49 percent year-on-year to P5.9 billion, fueled by the growth in retail loans, low-cost deposits, and pricing in wholesale loans.
Total loans rose 11 percent to P444 billion as of September, while total deposits climbed 4 percent to P487 billion.
The bank’s NPL reserve cover stood at 110 percent as of September, with provisions for credit losses in the first nine months of the year at P1.75 billion.
Total assets stood at P807 billion as of September, up from P766.66 billion as of end-2018.
Common equity Tier 1 ratio stood at 17.1 percent, up from 16.8 percent in the second quarter, while capital adequacy ratio was 18 percent compared to 19.2 percent a quarter ago.
