PSE Circular for Brokers No. 013-98

February 2, 1998 PSE CIRCULAR FOR BROKERS NO. 013-98 PRESS STATEMENT : Security Bank Corporation ended the year 1997 with P59 billion in resources and a consolidated net income of P807 million after setting aside significant provisions for nonperforming loans. The 1997 net income represents a modest 10% growth from the 1996 recurring income because the Bank decided to set aside P880 million in provisions to enable it to comply with the Bangko Sentral ng Pilipinas' regulations on provisions for probable loan losses, well in advance of the October 1998 deadline. As at year-end, the Bank's consolidated allowance for nonperforming loans amounted to over P1 billion, representing 3.2% of the gross loan portfolio and over 115% coverage of nonperforming loans. Net loan portfolio of the Bank stood at P31 billion. Total deposits amounted to P37 billion. Capital funds stood at P6.8 billion. cdasaia During these times of volatility in the Asian markets, Security Bank will continue to exercise prudent management. The Bank is committed to maintaining the highest quality portfolio and ensuring that it has one of the strongest balance sheet in the industry. It is for this reason that the Bank has accelerated its provisioning. Authorized Signature (SGD.) JOSELITO E. MAPE Vice President January 30, 1998 THE PHILIPPINE STOCK EXCHANGE, INC. Philippine Stock Exchange Centre Exchange Road, Ortigas Center, Pasig City Attention : COMPLIANCE & SURVEILLANCE DEPT. Gentlemen : Security Bank Corporation (SBC) hereby notifies the Exchange that today it has made an additional investment in Security Diners International Corporation (SDIC) by subscribing to one million three hundred fifty thousand (1,350,000) shares of the capital stock of SDIC at P100.00 per share for a total of P135.0 Million. SDIC is 100% owned by SBC. cdasaia Very truly yours, (SGD.) LOURDES L. CRISOSTOMO Assistant Corporate Secretary