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Friday, April 11, 2014

BSP approves Security Bank's preferred share sale

MANILA - Security Bank Corporation has bagged Bangko Sentral ng Pilipinas (BSP) approval of a plan to sell preferred shares.

In a disclosure to the Philippine Stock Exchange, Security Bank said it will create a billion voting preferred shares of stock with a par value of P0.10 each. The issuance is approximately 602.83 million of such preferred shares.

The BSP also approved the bank’s increase of authorized capital stock to P10.1 billion from P10 billion, broken down to P10 billion of common shares and 100 million of preferred shares.

A sinking fund for the redemption of preferred shares will be created upon the issuance. The preferred shares are redeemable at the sole option of the board of directors at the issue price.

Security Bank is boosting its consumer lending business by targeting the mass affluent market.

Albert Villarosa, Security Bank president, had said the lender plans to double last year's 10 percent growth of its retail banking, particularly its home, car, and personal loan portfolios.

The bank's loans grew by 38 percent year-on-year to P165 billion in 2013, while investment securities increased 30 percent to P83 billion.

Villarosa said profit growth could slow from last year, as interest rates increase in the second half of the year due to the US Federal Reserve tapering.

Security Bank's net income slid 33.3 percent to P5 billion last year from P7.5 billion in 2012.


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