Mid-sized lender Security Bank Corp. is setting its sights on a return to the benchmark Philippine Stock Exchange index (PSEi) within the next three years.
Victor Lee Meng Teck, the bank’s president and CEO appointed earlier this year, said consistent return growth and solid financial fundamentals will be key to reaching that goal. Strong financial performance, he explained, would drive upward movement in the bank’s share price.
“Today, admittedly, our price to book is probably running at about 0.3 times. Some of the lowest amounts of our peer banks,” Lee noted.
“So for us, it’s imperative for us to deliver those double-digit returns moving into next year. And if we are able to do that, I think investor confidence will come back. At a price to book of 0.3 times plus, it’s about confidence more than it is about performance,” he added.
As of Thursday, Security Bank shares traded at P64.35 each, giving the bank a market capitalization of P48.37 billion. PSEi inclusion requires companies to rank among the highest in market capitalization or volume-weighted average price multiplied by total shares. Security Bank was last part of the index in 2022.
“And if our price to book just doubles from 0.3 to 0.6, then we are seeing our share price double. And that will give us a good chance to get back in. Because I think the last time when we were in the PSE index, we were probably opening at P120 pesos per share,” Lee said.
The bank’s core strategy centers on strengthening its foundations and aligning with market growth trends. Lee said the lender’s loan mix—30 percent retail and 70 percent wholesale—will likely remain steady through the end of the year.
“It’s still going to be a material piece of our upward growth. I’m a true believer in the flow. And what I mean by the flow is that we follow where the markets, where growth really lies,” Lee said.
Security Bank has extended roughly P500 billion in financing in recent years and sees major opportunities in the renewable energy sector.
“There’s so much renewables, whether it’s solar, wind, and we want to be part of that flow. And when you are part of that flow, you’re not swimming upstream,” Lee said.
