Mid-sized lender Security Bank Corp. on Thursday said it is targeting to return to the benchmark Philippine Stock Exchange index (PSEi) at least in the next three years.
Victor Lee Meng Teck, the company’s president and CEO, said the bank will have to grow its returns consistently over the three-year period.
Lee, who was hired early this year, said the bank’s main goal is to fortify its financials, which will help its share price rise.
‘Today, admittedly, our price to book is probably running at about 0.3 times. Some of the lowest amounts of our peer banks,’ he said.
‘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.’
Security Bank’s share price was being traded at P64.35 apiece. It has a market capitalization of P48.37 billion.
One of the criteria for inclusion in the PSEi is that companies should be at the top of market capitalization or volume-weighted average price multiplied by total shares.
The last time the lender was part of the PSEi was back 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.
He said the lender’s loan mix may not materially change this year, with retail consisting of 30 percent, while 70 percent goes to wholesale.
‘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.’
The bank has financed some P500 billion over the last few years.
‘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.