Amid pandemic, Security Bank sees healthy capital

SECURITY Bank Corp. has maintained robust capitalization amid the Luzon-wide enhanced community quarantine (ECQ) due to coronavirus disease 2019 (Covid-19) pandemic, discounting fund-raising capital activities in the meantime.

“Our bank is well capitalized and liquid,” Security Bank President Sanjiv Vohra told the Businessmirror.

When asked if the bank was sketching fund-raising plans via equity or bond market, Vohra responded: “Not at this time. Security Bank continues to be among the country’s best capitalized private domestic universal banks.”

“Once markets stabilize, we can reconsider our options,” he added.

As of end-december 2019,

Security Bank’s common equity tier 1 ratio stood at 16.9 percent, which was better than its position at 16.4 percent in 2018. Total capital adequacy ratio (CAR), meanwhile, registered at 17.9 percent for the same period, lower from year-earlier 18.7 percent.

Common equity tier 1 ratio measures a bank’s core equity while CAR indicates capital sufficiency to protect depositors’ money.

Vohra said that it’s still “too early” to evaluate the financial impact of the lockdown and pandemic given the uncertainties. The Luzon-wide lock down was ordered by the government mid-march and will be lifted by April 30.

“The best we can do is put together all our resources to vigilantly monitor the rapidly changing environments and constantly reassess as government protocols are updated,” he said.

The listed bank has activated its business continuity plan since, adjusting operations to meet client needs amid pandemic.

Recently, the bank’s board of directors approved the issuance of up to P50-billion worth of long-term negotiable certificates of deposit. It has yet to receive monetary authority approval.

Security Bank saw its net income surge by 17 percent to P10.1 billion last year on the back of robust revenue growth driven by core business earnings.

The bank has encouraged customers to transact through its fully integrated e-banking service amid the pandemic. Among the digital platform’s offered services are buying mobile load credits, bill payment and fund transfers.

Security Bank also said that customers could set up esecure Online Savings account with a minimum amount of P500 and maintaining balance of P5,000 to begin earning interest.

“Amid the restrictions in movement to mitigate the risk of Covid-19, Security Bank is here to provide your banking needs, ensuring you a better banking experience during this tough time,” the bank said. Tyrone Jasper C. Piad