Security Bank Corp. plans to raise up to P20 billion in fresh capital through the issuance of long-term negotiable certificates of deposit.
Security Bank said in a disclosure tho the Philippine Stock Exchange its board approved the issuance subject to regulatory approval.
Security Bank in April last year received P36.5 billion from Bank of Tokyo-Mitsubishi UFJ Ltd. as payment for the acquisition of a 20 percent stake in the local bank.
BTMU is now the second largest shareholder of Security Bank, while Security Bank is now an equity affiliate of BTMU. The Dy Group remains the biggest shareholder of Security Bank with majority voting control.
As a result of BTMU’s investment, Security Bank’s shareholder capital increased to P90.2 billion pro-forma as of April 1, 2016 from P53.2 billion as of Dec. 31, 2015.
Security Bank earlier reported a net income of P5.2 billon in the first half of the year, up 8 percent from a year ago, driven by a double-digit increase in net interest income.
The performance was driven by a 26-percent or P1.9-billion increase in net interest income to P9.3 billion. Non-interest income including trading gains stood at P2.9 billion, down 15 percent or P0.5 billion.