Security Bank Corporation (PSE: SECB) disclosed an annualized return on equity of 21% versus the 19% registered a year earlier.  This was achieved on the back of a year-to-date net income performance of PhP 2.2 billion and sustains the company’s record of industry high returns to shareholders.

The Bank’s balance sheet stood at PhP 137.7 billion relatively flat to year-end 2008 levels.  Loans stood at PhP 66.0 billion and accounted for 48% of assets deployed on the balance sheet, at equal footing with its securities portfolio.  The balance sheet profile has helped to drive 20.7% growth in net interest earnings.

Security Bank Corporation President and Chief Executive Officer, Mr. Alberto S. Villarosa explained: “One of the Bank’s objectives was to move towards a more balanced revenue profile.  We are pleased that we are showing excellent improvements in both the net interest income and other income revenue sources from our core businesses.  Moreover, this has been achieved while ensuring we maintain superior asset quality indices.”

Alongside the outstanding shareholder return achieved this year, the Bank further improved its average return on assets to 2.1% versus the 1.8% reported in end-of-year 2008.  The combined results translate to earnings per share (EPS) for the period of Php 6.65 per share versus Php 5.22 per share from the prior year.  The expanded revenue base has led to further enhancements in the Bank’s cost to income ratio which stood at 51% down from the 54% a year earlier.

More importantly, Security Bank’s non-performing loans (NPL) ratio of 1.6% for the period remains among the best in the industry.  In addition, NPL cover remains unparalleled at 271% at the end of September 2009.  The Bank’s fundamentally sound capital base is reflected in a Capital Adequacy Ratio of 15.5%.