Grupo Security Profit Up 7.8% in 2018 to CH $80,548 Million
The Group's CEO, Renato Peñafiel, highlighted its results, which were driven by the Bank's earnings of CH $72,653 million, with growth of 15.3% over the prior year.
Grupo Security reported profit of CH $80,548 million for 2018, which represents an increase of 7.8% over the previous year. Grupo Security's stock reported a return of 8.0% in 2018, outperforming the S&P/ CLX CLX IPSA, which posted a return of -8.3%, based on the financial statements filed today with the Financial Market Commission (CMF).
The CEO of Grupo Security, Renato Peñafiel, commented, "These results were driven by the Bank's earnings, reporting profit of CH $72,653 million and reflecting growth of 15.3%, thanks to strong performances from the commercial banking (CH $42,883 million, +13.8%) and retail banking (CH $8,253 million, +28.8%) divisions."
Banco Security had total loans of CH $5,346,071 million, up 10.6% with respect to the prior year, giving it market share of 3.3%. The Bank reported particularly strong growth in commercial loans, which increased 12%, with market share in its target segment of medium and large companies of 6.5% as of December 2018.
Highlights in 2018 included Security Internacional’s acquisition of Vida Security’s entire interest in Inversiones Security Perú S.A.C, the parent of Protecta Security, for S./ 100 million. This transaction generated a one-time gain of CH $12,157 million for Vida Security, which was fully reversed at group level. This drove earnings at Vida Security to CH $30,159 million for the year ended December 2018.
In addition, in November 2018, Grupo Security’s stock was included on the MSCI Chile Small Cap Index, favoring the stock's liquidity and helping attract new local and foreign shareholders into the Group's shareholder base.
Regarding its prospects for this year, Peñafiel said “our projections for this year call for continued returns for our shareholders, looking to maintain annual earnings growth of at least 10%, through sustained expansion of our businesses in Chile and Peru, with conservative risk management and the seal of excellence that has characterized Grupo Security since its formation."
For the eighteenth consecutive year, Grupo Security was recognized among the best companies to work for in Chile, attaining third place in the Great Place to Work ranking. Grupo Security has focused on maximizing the internal customer experience by understanding and anticipating needs and directly impacting wellbeing, which shows the success of its corporate culture and makes it a model for work-family-life balance in Chile.