FOR INQUIRIES, PLEASE CONTACT:

ROPI F. DANGAZO, Investor Relations Head

T: +632-888-7175; E: RDangazo@securitybank.com.ph

RICA F. BAELLO, Corporate Communications Head
T: +632-888-7650 ; E: RBaello@securitybank.com.ph






Security Bank 1H-2014 Net Income Up 115% to Php 3.614 Billion for 17.2% ROE
12 August 2014, Makati, Philippines Security Bank Corporation (PSE: SECB) earned Php 3.614 billion in
net income in the first half of 2014, representing 115% year-on-year growth and 17.2% return on
shareholders equity (ROE).
This result was driven by sustained growth in the Banks core businesses, with loan portfolio increasing
by 30% year-on-year to Php 173 billion, investment securities expanding by 106% to Php 111 billion, and
deposits growing by 22% to Php 218 billion, which fuelled a 31% year-on-year increase in Security Banks
total assets to Php 385 billion. The loan-to-deposit ratio was 79%. The return on assets (ROA) was 1.9%.
Net interest income increased by 46% year-on-year to Php 5.8 billion in 1H-2014. Net interest margin
was sustained at 3.5% in 1H-2014, same level as in 2013. Core revenues which consist of net interest
income, fee-based income, and trading gains attributable to customer flows increased by 31% year-on-
year to Php 7 billion in 1H-2014. Fee-based income inclusive of asset management was Php 850 million.
Over-all trading gains contributed Php 1.66 billion.
Security Bank's total operating income increased by 59% year-on-year to Php 8.4 billion while operating
cost (excluding provisions for credit losses and impairments) grew by 11.8%. Ten new Security Bank
branches were opened in the second quarter of 2014. The Security Bank group has a network of 253
branches and 444 ATMs as of June 30, 2014.
After almost doubling its branch network in a span of less than three years, Security Bank in 2014 is
implementing BetterBanking, a comprehensive re-branding and retail bank transformation aimed at
making banking easier and better for clients. Clients currently enjoy enhancements in services that
include transaction alerts every time they use their cards, no charges for transacting at other banks
ATMs, faster and paper-less transactions in the branches, faster approvals for home mortgage and
consumer loan applications, among others.
Security Bank continues to sustain superior asset quality with gross NPL ratio at 0.57% as of June 2014
compared to 0.59% a year ago. Notwithstanding this, the Bank made Php 700 million in credit provisions
in 1H-2014, further increasing the reserve cover to 297% as of June 30, 2014 from 266% a year ago. Pre-
provision operating profit (PPOP) was at Php 4.3 billion, representing 143% year-on-year increase.




After the Php 1.00 per share in semestral cash dividends to stockholders in June 2014, the Banks capital
attributable to shareholders grew by 15% year-on-year to Php 43.7 billion. In July 2014, Security Bank
successfully issued Php 10 billion in Basel III compliant Tier 2 Notes to further increase its total capital
adequacy ratio to support the continuing growth in its earning assets.
Security Bank President and Chief Executive Officer Mr. Alberto S. Villarosa said, "All of our business
segments strongly contributed to the results, thanks to the healthy economy and our strong customer
focus and business discipline."
Security Bank Chief Financial Officer Mr. Joselito E. Mape said, "Our cost efficiency continues to
improve, with cost-to-income ratio at 44% in 1H-2014. Our capital adequacy ratios under Basel III are
sustained at healthy levels, with Common Equity Tier 1 (CET 1) at 13.2% and Total CAR at 14% as of June
30, 2014."
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About Security Bank
Security Bank is the 8th largest private domestic universal bank in the country with total assets of Php
385 billion, 7th largest in loans with loan portfolio of Php 173 billion, and 8th largest in total capital at
Php 45 billion as of June 30, 2014.
Security Bank has been a recipient of numerous awards, among which, in 2013, Security Bank was Best
Managed Bank in the Philippines by The Asian Banker of Singapore, and in 2012, Security Bank was
Bank of the Year in the Philippines by The Banker of London, and the Strongest Bank in the Philippines
by The Asian Banker. The Bank has been operating for 63 years since it was established in 1951.
More information is available on our website: www.securitybank.com.