17 slides from Security Bank Corp. (philippines)'s earnings presentation, Aug 18, 2021
Slide 1: 2Q21 / 1H21 Results Highlights
2Q21 / 1H21 Results Highlights By: Sanjiv Vohra, President and CEO August 18, 2021
Slide 2: Total Revenues
Total Revenues Total Revenues Total Revenues (excluding Trading Gains) ₱18.3 Billion ₱17.2 Billion 25.9 -29% 18.7 -8% 17.2 -₱7.5 B 18.3 -₱1.4 B H1-2020 H1-2021 H1-2020 H1-2021 Profit Before Tax Net Income ₱5.5 Billion ₱3.1 Billion +20% 5.5 5.7 4.6 -45% +0.9 B -₱2.5 B 3.1 H1-2020 H1-2021 H1-2020 H1-2
Slide 3: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net Interest Income Net Interest Margin ₱13.6 Billion 4.36% 15.8 -14% 4.71% -35bps 13.6 4.36% -₱2.3 B H1-2020 H1-2021 H1-2020 H1-2021 3 Note: Numbers may not sum up due to rounding
Slide 4: Non-Interest Income
Non-Interest Income Total Non-Interest Income Securities Trading Gains ₱4.8 Billion ₱1.1 Billion -52% 7.2 10.0 -85% -₱5.3 B 1.7 -₱6.1 B 4.8 7.2 2.1 1.1 1.1 1.1 1.5 H1-2020 H1-2021 H1-2020 H1-2021 Service Charges, Fees & Commissions Non-Interest Income - Others ₱2.1 Billion 2.1 ₱1.5 Billion +28% 1.5
Slide 5: Cost-to-Income Ratio and Operating Expense
Cost-to-Income Ratio and Operating Expense Cost-to-Income Ratio Operating Expense* 56.4% 56.4% ₱10.3 Billion 39.7% 10.3 +0.9% 10.3 +₱0.1 B YoY growth 3.2 3.4 +7% Compensation and fringe benefits 1.8 1.8 -2% H1-2020 H1-2021 Taxes and licenses 1.2 1.3 +10% Manpower Headcount 0.2 0.2 Depreciation and a
Slide 6: Total Loans and Total Deposits
Total Loans and Total Deposits (Year-over-Year) Total Loans* Total Deposits ₱425 Billion ₱522 Billion 450 -5% 511 +2% 522 YoY 425 YoY +₱11 B 123 27% -₱24 B 106 25% 247 48% +16% 286 55% 327 73% 319 75% -11% 264 52% 236 45% Jun. 30, 2020 Jun. 30, 2021 Jun. 30, 2020 Jun. 30, 2021 (Quarter-over-Quarter)
Slide 7: Asset Quality
Asset Quality Gross NPL Ratio and NPL Reserve Cover Allowance over Total Loans 115% 120% 4.38% 4.70% 103% 4.30% 4.38% 3.89% 3.93% 3.40% Dec. 31, 2020 Mar. 31, 2021 Jun. 30, 2021 Dec. 31, 2020 Mar. 31, 2021 Jun. 30, 2021 7
Slide 8: Provisions for Credit Losses
Provisions for Credit Losses Provisions for Credit Losses Provisions per Segment In Php millions H1-2020 H1-2021 11.0 Retail 3,924 420 -78% Wholesale 1,488 2,810 -₱8.5 B Financial Markets 6 (4) Others 5,551 (785) Total 10,969 2,441 2.4 In Php millions Q2-2021 Retail (285) Wholesale 2,605 H1-2020 H1-
Slide 9: Balance Sheet and Key Financial Ratios
Balance Sheet and Key Financial Ratios Total Assets Total Liabilities ₱704 Billion ₱580 Billion 740 704 613 580 40% 61% 60% 49% 43% 22% 17% 41% 17% 22% 7% 2% 5% 4% 5% 3% Jun. 30, 2020 Jun. 30, 2021 Jun. 30, 2020 Jun. 30, 2021 Liquidity Ratios CET 1 and Total CAR Liquidity Coverage Ratio (LCR) 155% 1
Slide 10: Quarterly Financial Highlights
Quarterly Financial Highlights Total Revenues Total Revenues (excluding Trading Gains) ₱9.6 Billion ₱9.1 Billion 14.4 12.6 10.1 9.6 8.8 8.9 9.2 9.2 9.1 8.1 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 10
Slide 11: Quarterly Financial Highlights
Quarterly Financial Highlights Net Interest Income Net Interest Margin ₱6.9 Billion 4.29% 4.64% 4.90% 4.88% 7.8 7.6 7.3 4.22% 4.29% 6.6 6.9 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Low-Cost Deposits ₱286 Billion +4% +3% +2% +5% 286 257 266 272 247 Q2-2020 Q3-20
Slide 12: Quarterly Financial Highlights
Quarterly Financial Highlights Non-Interest Income Service Charges, Fees & Commissions ₱2.6 Billion 6.8 ₱1.1 Billion 4.9 1.0 1.1 1.1 0.9 2.9 2.6 2.1 0.6 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 12
Slide 13: Quarterly Financial Highlights
Quarterly Financial Highlights Operating Expenses Provisions ₱5.3 Billion ₱2.0 Billion 10.1 5.0 5.2 5.1 5.3 4.3 5.3 5.3 2.0 0.4 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Pre-Provision Operating Profit Net Income ₱4.3 Billion 9.2 ₱1.5 Billion 7.6 5.9 2.8 4.3 3.7
Slide 14: Summary Themes: H1-2021
Summary Themes: H1-2021 1. Loans: Decrease in retail (down -12% YoY) and wholesale (down -1% YoY) given economic backdrop. 2. NIM: Decrease Year-on-Year but up on quarterly sequential basis. 3. Trading Gains: Remain muted given continued muted interest rates. 4. Credit Provisions: • Retail portfolio
Slide 15: 2021 Themes
2021 Themes 1. Our Vision: To become the most customer-centric bank in the Philippines 2. Core client engagement in The Philippines’ Best Bank retail and wholesale segments Best Bank for High Net Worth Clients 3. Continue to invest in in the Philippines strategic pillars: • Our Team • Risk Managemen
Slide 16: Mass market consumer finance and digital journey milestones
Nov Annual Household income PHP ✓ Help the average Filipino make informed 2021 Mobile App decisions on money on finance Affluent ≥1 Mio ✓ Answer the call of financial inclusion ✓ Mass market consumer finance arm of SBC; 600k ASEAN expansion footprint for KS Mass affluent -1 Mio ✓ Create digital jour
Slide 17: 2Q21 / 1H21 Results Highlights
2Q21 / 1H21 Results Highlights By: Sanjiv Vohra, President and CEO August 18, 2021