2023 Integrated Report
Message from the Interim Chairman
Dear Shareholders, Clients,
and Partners,
The year 2023 was a challenging yet rewarding one for Security Bank. We faced unprecedented global and local headwinds: the ongoing Ukraine War, Hamas-Israel conflict, COVID-19 recovery, climate and energy crises, inflationary pressures, and a more competitive Philippine banking landscape. Despite these difficulties, we remained resilient and agile, delivering solid financial results and achieving strategic milestones.
The Philippine economy and the local banking industry rebounded from the recession, posting favorable growth rates and improving indicators. We capitalized on the favorable macroeconomic conditions and the robust domestic demand, increasing our loans and deposits and improving our asset quality and capital adequacy. We also supported the national development agenda, participating in various infrastructure projects, social programs, and environmental initiatives. We contributed to the financial inclusion and literacy of the underserved sectors, providing them access to affordable and convenient banking services.
The Philippine economy and the local banking industry rebounded from the recession, posting favorable growth rates and improving indicators. We capitalized on the favorable macroeconomic conditions and the robust domestic demand, increasing our loans and deposits and improving our asset quality and capital adequacy. We also supported the national development agenda, participating in various infrastructure projects, social programs, and environmental initiatives. We contributed to the financial inclusion and literacy of the underserved sectors, providing them access to affordable and convenient banking services.
As a result of our efforts, we achieved a net income of PHP9.11 billion, a return on equity of 6.95%, and a net interest margin of 4.49%. We also maintained a healthy balance sheet, with total assets of PHP871.51 billion, total capital of PHP136.13 billion, and a total capital adequacy ratio of 16.19%. We received several accolades and recognitions from reputable local and international organizations, including the 4 Golden Arrow Recognition for Excellence in Corporate Governance from the Institute of Corporate Directors (ICD). This prestigious recognition proves our commitment to ethical governance practices, which have been a cornerstone of our operations.
We also acknowledge the changes and challenges ahead as we celebrate our achievements. We are committed to pursuing our transformation journey, guided by our mission of enriching lives, empowering businesses, and building communities sustainably.
We also supported the national development agenda, participating in various infrastructure projects, social programs, and environmental initiatives. We contributed to the financial inclusion and literacy of the underserved sectors, providing them access to affordable and convenient banking services.”
I am grateful to my fellow members on the Board of Directors, who provide us with strategic direction and oversight over all our activities.?We welcome two new directors from MUFG, namely,?Juichi Umeno and Nobuya Kawasaki,?as well as the appointment of Maria?Cristina Tingson as a new director of our Bank,?which?is a testament?to our recognition of homegrown talent and leadership potential. We also appreciate the contributions of our?new?Executive Committee and Senior Credit Committee,?which? have been instrumental in steering our business and risk decisions.
Last year, we lost our beloved Chairman, Alberto “Abet” S. Villarosa. A well-known and respected giant in the industry, Abet was a diligent and visionary leader who shaped Security Bank into the financial institution that it is today. I am humbled to have worked alongside Abet and call him my friend and mentor. We will continue Abet’s legacy by living out the Security Bank spirit—our love for our Bank and our respect and care for one another—and upholding his vision of transforming Security Bank into a world-class bank that serves the Filipino people.
On behalf of the Board of Directors, I thank our shareholders, clients, and partners for your continued trust and support. I would also like to thank our management and staff for your dedication and hard work. Together, we will overcome the challenges and seize the future opportunities. Together, we will make a better impact, fulfill our promise of BetterBanking, and build a better tomorrow for our stakeholders and nation.
Cirilo P. Noel
Interim Chairman
2023 Integrated Report
BetterBanking for better impact
