Grupo Security reports robust recovery in earnings
Based on financial statements (FECU format) filed with CMF today:
GRUPO SECURITY REPORTS ROBUST RECOVERY IN EARNINGS
In addition to a strong performance from its businesses, another contributing factor was the favorable effects of the savings plan being implemented by the group.
Grupo Security reported profit of MCH$24,352 for the first quarter of this year, well above the 1Q20 figure of MCH$6,500. Mobile LTM profit was MCH$82,998, in line with pre-crisis levels from 2019. This bottom line was driven by the favorable effect of the companies’ savings plan.
The Group's CEO, Renato Peñafiel, commented, “We are very pleased. These figures are equivalent to earnings per share of CH$20.5, up 25% from CH$16.8 as of year-end 2020 and 17% above March of last year.” He added that “Grupo Security's price-to-earnings ratio is 6.8 and its market to book ratio is 0.6, both historic lows. This could be partly explained by the impact of local political uncertainty on the domestic stock market. Meanwhile, the Group's dividend yield is 6.3%, among the highest figures in recent years,” explained Peñafiel.
These results can be attributed to favorable performances from the Group's subsidiaries, especially the Bank, which reported profit of MCH$16,892. This figure represents 6.1% growth over March 2020 and accounts for 48.1% of profit from the Group's related companies. The Bank's asset management subsidiaries posted profit of MCH$2,885, a significant rise thanks to growth in assets under management in a challenging setting, savings in total expenses and robust returns on its proprietary trading portfolio because of market conditions.
Thanks to strong returns from financial investments, Vida Security performed well with profit of MCH$15,322 for 1Q21. Inmobiliaria Security, in turn, reported profit of MCH$1,401 and Factoring Security’s results were on par with expected growth.
Regarding forecasts for the rest of the year, Grupo Security anticipates continued recovery. “We believe that the active vaccination process underway in our country will positively impact the second half of the year and reactivate the local economy. Together with improved international economic conditions, we should reach GDP growth rates of around 6%, with the resulting effects on the financial sector where Grupo Security does business,” expressed Renato Peñafiel.