13 slides from Security Bank Corp. (philippines)'s earnings presentation, Aug 31, 2017
Slide 1: Analysts' Briefing (H1-2017 Results)
Analysts’ Briefing (H1-2017 Results) By: Mr. Alfonso L. Salcedo, Jr., President & CEO August 31, 2017
Slide 2: Strategy: 2013 to Present
Strategy: 2013 to Present Build Retail Banking into a strong third business pillar complementing our Wholesale and Financial Markets businesses. Rationale: › Create a steady-growth and higher margin business. › Minimize dependency on trading gains. 2012 Revenue Sources In % Net Interest Income 58 Tr
Slide 3: Loan Portfolio
Loan Portfolio +27% YoY Total Loans (PhP Bn) 340 14% 46 289 13% 39 238 24 10% 119 35% CAGR 2012-2016: 194 107 37% Corporate: 22% 7% 14 165 5% 92 39% Middle Market: 24% 8 77 Consumer: 57% 120 40% 7 6% 62 38% Total: 25% 35% 51% 42 173 51% 143 50% 53% 122 95 57% 103 59% 71 '12 '13 '14 '15 '16 H1-'17 Co
Slide 4: Net Interest Margin from Loans by Segment
Net Interest Margin from Loans by Segment Full Year 2016 H1-2017 Corporate Consumer Corporate Consumer 33% 31% 33% 34% Middle Middle Market Market 36% 33% 4
Slide 5: Deposit Portfolio
Deposit Portfolio Total Deposits (PhP Bn) (1) By Segment (2) 380 347 350 Retail 37% 290 300 60% Corporate 247 228 250 60% 63% 208 206 60% 200 174 62% 153 142 150 65% 133 CAGR 2012-2016: 100 87 62% Low-Cost: 24% Other Deposits: 29% 40% 40% 152 40% 138 50 94 38% 116 Retail: 20% 73 55 38% 35% Corporate
Slide 6: Major Investment in Manpower to Support Retail Banking Infrastructure
Major Investment in Manpower to Support Retail Banking Infrastructure Total Headcount 2012 June 2017 Increase Retail Lending/Branches 1,977 3,519 1,542 All Others 1,243 1,705 462 Total 3,220 5,224 2,004 6
Slide 7: Revenues (PhP Bn)
Revenues (PhP Bn) CAGR 2013-2016: Net Interest Income: 24% Trading Gains: -8% Fees & Other Income: 28% Total Revenues: 20% 20.8 18.3 15% 3.2 16.6 3.2 19% 1.8 9% 12% 1.9 12.1 21% 2.8 15% 12.2 3.6 1.5 14% 1.8 15% H1-’17 Growth Rate YoY: 1.1 9% Net Interest Income: +26% 2.2 18% Trading Gains: -29% 15.9
Slide 8: Profitability
CAGR 2013-2016: Profitability Net Income: 20% Net Income After Tax (PhP Mn) 10,000 8,554 7,699 8,000 7,164 +8% YoY 6,000 5,012 5,244 4,000 2,000 0 '13 '14 '15 '16 H1-'17 30 Return on Equity (%) (1) Cost-to-Income (%) (2) 61.2 63.6 63.0 63.8 20 58.9 16.3 54.8 51.3 15.2 47.3 50.2 48.8 12.9 13.7 11.0 1
Slide 9: Net Interest Margin
Net Interest Margin Net Interest Margin (%) (1) 3.5 3.4 3.3 3.3 3.3 3.2 3.1 3.0 2.9 2.9 '13 '14 '15 '16 H1-'17 SECB Industry Avg Note: (1) Industry data for Universal and Commercial Banks from Supervisory Data Center, Supervision and Examination Sector, Bangko Sentral ng Pilipinas, latest as of June
Slide 10: Balance Sheet: Asset & Funding Structure
Balance Sheet: Asset & Funding Structure Total Assets (PhP Bn) Total Liabilities and Capital (PhP Bn) +26% YoY +26% YoY 775 +31% YoY +31% YoY 775 695 800 19% 750 695 145 700 +34% YoY 22% +34% YoY 650 156 380 49% 532 532 600 50% 20% 33% 347 550 +14% YoY 254 +14% YoY 105 500 397 32% 397 450 222 55% 34
Slide 11: Asset Quality
Asset Quality NPL Cover and Ratio (%) (1) 305 2 NPL Cover (%) 255 220 200 205 204 SECB 195 205 144 142 141 145 138 Industry 155 105 Net NPL Ratio (%) (1) 55 0.38 0.40 0.28 0.30 0.32 0.19 0.17 5 0.11 0.14 0.10 0 -45 '13 '14 '15 '16 H1-'17 NPL Ratio Industry NPL Ratio NPL Cover Industry NPL Cover Note
Slide 12: Capital Strength
Capital Strength Total CAR (%) (1) Major Philippine Banks’ Capitalization (%) (2) 19.0 Median CET1 Ratio = 13.2% Median Total CAR = 15.5% 25 15.7 16.0 15.7 15.2 15.5 20.5 16.6 14.5 13.7 13.7 20 18.4 19.0 14.9 14.7 14.0 15.5 15.2 18.0 13.2 12.8 16.6 12.1 12.0 15 15.1 10.4 14.3 12.2 10 5 0 '13 '14 '15
Slide 13: 2017 Major Initiatives
2017 Major Initiatives › To sustain the delivery of our BetterBanking promise Complete I.T. Transformation & increase our capacity to support growth in business. Continue Branch Expansion; Review › To expand our coverage of retail and middle in Light of New BSP Circular 940 & markets. “Branch Lite”