February 03, 2014

SECB grows assets by 34% YoY

In a disclosure to the Exchange, Security Bank (SECB,Buy) announced that it grew its assets by 34% YoY to P348b as of end-2013. This was driven by 38% YoY growth in loans (to P165b) and 30% rise in investment securities (to P83b). These were funded by the 45% growth in deposits to P206b. Aside from the migration of SDA funds to deposits, SECB's deposit growth was supported by the opening of 36 new branches in 2013, bringing its total branch network to 244.

Our take: SECB's asset and loan growth have exceeded our forecasts. The bank is apparently focusing on growing its leverage through asset growth in order to compensate for weaker trading gains and the expected rise in interest rates. Moving forward, the bank's expanded branch network comes handy in driving SECB’s market presence and sustaining its loan growth. - WealthSec