Japan Credit Rating Agency affirms Security Bank’s A- credit rating

Japan Credit Rating Agency Ltd. (JCR) has affirmed its A- investment grade credit rating with stable outlook on Security Bank Corp. of the Dy family, citing the lender’s robust domestic business base, high profitability and solid capital base.

“Security Bank’s financial durability stays strong as indicated by its high loanloss provision coverage ratio and capital adequacy ratio in addition to its high profitability ensured by a high net interest margin”. The Bank kept its provision coverage ratio high at 115% at the end of 2020,” JCR said.

In upholding the rating, JCR also considered Security Bank’s alliance with MUFG Bank as well as the bank’s NPL ratio which remained at a manageable level.

“Furthermore, the bank had kept its higher credit costs at a level that can be fully absorbed by its profitability. Security Bank’s consolidated common equity Tier 1 ratio stood at 19.2% at the end of 2020, one of the highest among major Philippine banks.

The bank’s equity ratio got a boost due partly to a strengthened capital base rendered by MUFG Bank’s equity investment in 2016 and due partly to net income in 2020 and a reduction of risk assets through tighter lending and sale of securities. “JCR said.

Security Bank president Snjiv Vohra said JCR’s affirmation of the bank’s credit rating ” is a testament to our strength as we continue to provide our customers with BetterBanking services in these trying times.”

Vohra said the bank would deploy the needed investments to support its clients’ pandemic recovery efforts, employee health & safety initiatives, and systems and technology upgrade.

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