Grupo Security reports 51% increase in profit for 2023
February 22, 2024 at 4.00 PM EST
According to information filed today with the Financial Market Commission (CMF), Grupo Security reported profit of MCH$196,562 for the year ended 2023, which represents an increase of 51% over the previous year. Accordingly, as of the end of the fourth quarter of 2023, the Company had achieved earnings per share of CH$49.1.
These positive results are explained by a strong performance from the lending area and good results in its other business lines, among other factors. In the case of Banco Security, it achieved profit of MCH$176,670 million, equivalent to an increase of 24.1% with respect to the previous year, as a result of a larger net interest margin in the commercial areas and strong treasury results. Meanwhile, the asset management area’s profit reached MCH$10,388.
The chairman of Grupo Security, Renato Peñafiel, pointed out that "these positive results are in response to our vision and business strategy, which is based on projecting our leadership, addressing the permanent challenges that the financial industry demands of us and meeting the needs of our customers. This has positioned us as a market benchmark with a robust growth strategy.
The CEO of Grupo Security, Fernando Salinas, highlighted the Company's performance during 2023 and the work of its teams, which is aligned behind the purpose of "creating value by developing new, innovative and digitalized products, always putting our customers first and maintaining the quality service and excellence that set us apart."
Vida Security recorded a result of MCH$40,099 at the end of 2023, with gross written premiums of MCH$489,758 as of December 2023, equivalent to an increase of 8.5% over the previous year and market share of 6.4% in total premiums and 6.3% in annuities as of September.
In addition, Factoring Security achieved profit of MCH$14,302, with 9.6% growth over 2022. This Grupo Security subsidiary was listed as a "fintech" company by the publication Radar Finnovista 2023, due to its Autofactoring platform with a 100% digital process for customers. In addition, the subsidiary Travel Security reported a net result of MCH$5,905, equivalent to an increase of 36.3%, explained by a recovery in sales levels.
In January of this year, Grupo Security and BICECORP informed the Financial Market Commission (CMF) that they had signed an agreement to merge their businesses and subsidiaries. The deal, which must be approved by the CMF, the National Economic Prosecutor's Office (FNE) and both parties following a reciprocal due diligence process, would take place through a takeover bid to be launched jointly by Forestal O'Higgins and BICECORP, and the subsequent merger by incorporation of Grupo Security into BICECORP. If the conditions precedent are met and the merger is completed, it will result in the creation of a financial group with an estimated economic value of US$ 3.13 billion, total assets of US$ 37 billion, more than 2.4 million customers, 6,250 employees and 83 branches in the country.