22 slides from Security Bank Corp. (philippines)'s earnings presentation, March 2017
Slide 1: Investor Presentation FY 2016 Results
Investor Presentation FY 2016 Results
Slide 2: Table of Contents
Table of Contents Wholesale Banking 2
Slide 3: Our Company
Our Company Security Bank is an independent bank with core businesses in Branches (1) ATMs (1) Wholesale Banking, Financial Markets, and Retail Banking with a solid niche among the mass affluent Filipino-Chinese community. 292 622 Corporate Banking LUZON Commercial/SME Banking 70 Branches | 24%
Slide 4: Market Data
Market Data Security Bank Corporation 2014 2015 FY-2016 Company Identifiers BVPS (PhP) (1) 77.8 88.2 128.9 Bloomberg SECB.PM EPS (PhP) 11.9 12.77 11.35 Reuters SECB PS DPS (PhP) 2.0 2.0 2.0 Stock Price as of March 15, 2017 200.00 P/E (x) 12.9 11.7 18.8 52 week range (L-H) 152.68 – 256.38 P/BV (x) 1.
Slide 5: Banking Industry
Banking Industry SECB has roughly 5% market share in total assets, 4% in loans & 4% in deposits in the 41-bank universal/commercial bank industry in the Philippines. SECB is driven by profitability first and foremost & will pursue aggressive build-up in market share if it improves profitability & sh
Slide 6: Profitability
Profitability Revenues (PhP Bn) +14% YoY Return on Equity (%) (1) 20.9 34.6 18.3 16.8 3.2 15% 19% 3.0 1.8 8% 14.0 2.0 11% 24.6 12.8 12.3 11.6 2.9 15% 22.0 1.8 13% 3.6 21% 1.1 9% 1.7 14% 2.4 20% 4.1 29% 16.3 15.2 2.2 12.7 12.913.7 18% 5.6 43% 1.7 15% 76% 12.7 12.1 15.9 11.0 10.410.5 12.4 66% 9.4 11.2
Slide 7: Profitability
Profitability Return on Assets (%) Assets-to-Equity 4.9 9.9 10.1 10.0 9.7 3.5 8.9 9.0 3.3 8.5 8.5 8.2 8.1 7.2 7.0 7.1 6.8 1.9 1.9 1.8 1.7 1.5 1.6 1.4 1.4 1.3 1.2 1.2 '10 '11 '12 '13 '14 '15 '16 '10 '11 '12 '13 '14 '15 '16 (1) SECB Industry Avg SECB Industry Avg (1) Note: (1) Industry data for Univer
Slide 8: Cost Efficiency
Cost Efficiency Cost-to-Income (%) (2) Operating Expense (Php Mn) (2) +11% YoY 10,442 9,388 64.0 63.6 63.0 61.5 61.7 61.2 58.9 7,925 39% 54.8 50.3 50.2 38% 6,751 47.3 42.6 5,972 38% 7% 36.7 36.9 36% 7% 4,710 7% 4,326 38% 9% 7% 12% 34% 7% 9% 32% 14% 7% 9% 6% 8% 13% 8% 7% 14% 8% 14% 15% 14% 36% 33% 34
Slide 9: Net Interest Margin
Net Interest Margin Asset Yield vs. Funding Cost (%) (1)(2) Net Interest Margin (%) (2) 4.4 4.3 4.1 4.1 3.9 3.8 3.5 3.5 3.3 3.3 3.3 3.1 2.9 2.9 6.0 5.9 6.1 5.1 4.2 4.3 4.1 5.1 3.8 4.7 4.0 3.8 '10 '11 '12 '13 '14 '15 '16 3.8 3.8 2.3 2.1 1.8 1.6 SECB Industry Avg 1.3 1.5 1.3 1.9 1.8 1.6 Net Interest M
Slide 10: Fee-Based Income
Fee-Based Income Diversified Fee Income Service Charges, Fees and Commissions (Php Mn) +2% YoY 2,368 2,312 Miscellaneous, 113 5% 102 Deposit, 16% 388 Bancassurance, 552 16% 1,686 214 1,561 79 92 171 203 265 Stock Brokerage, 10% 1,255 181 239 242 68 193 1,035 443 132 Asset Mgt./ 351 293 892 39 229 Tr
Slide 11: Balance Sheet: Asset & Funding Structure
Balance Sheet: Asset & Funding Structure Total Assets (PhP Bn) Total Liabilities and Capital (PhP Bn) 695 695 156 22% 532 532 347 50% 105 20% 397 222 32% 397 348 90 23% 348 290 55% 175 33% 259 103 29% 28 4% 40 6% 215 101 25% 259 76 30% 15 2% 247 62% 59% 49 70 21% 215 206 23% 7% 167 14 4% 39 30% 58 2
Slide 12: Funding Structure
Funding Structure 4% 4% 3% 3% 5% 5% 2% 12% 12% 10% 10% 14% Other Liabilities, 2% 15% 15% 3% 2% 2% 1% Capital, 14% 1% 1% 0% 3% 3% 2% Savings Deposits, Subordinated Debt, 20% 26% 20% 1% 24% 25% 28% 28% 30% 3% Notes Payable, 2% 3% 0% 4% 10% 14% 2% 2% 12% 1% 13% 10% 10% Demand Deposits, 15% 15% 13% 16%
Slide 13: Loan Portfolio
Loan Portfolio Total Loans (PhP Bn) By Industry(1) 289 Others Manufacturing 39 13% 28% 239 11% 10% 24 192 7% 107 37% 163 14 Financial Wholesale/ 92 38% Intermediation Retail Trade 8 5% 10% 19% 120 78 40% 6% 63 38% 92 7 75 4 4% 42 36% Real Estate 3 4% 33 36% 143 50% 123 51% 15% Utilities 28 37% 100 5
Slide 14: Deposit Portfolio
Deposit Portfolio Total Deposits (PhP Bn) (1) By Segment 346 290 Retail 36% 247 208 60% Corporate 64% 207 60% 174 62% 153 143 65% 134 By Currency 119 111 62% 88 58% 60% 69 67 FCDU 40% 138 40% 38% 116 34% 94 35% 38% 73 40% 50 42% 55 44 PHP '10 '11 '12 '13 '14 '15 '16 66% Low Cost- CASA Other Depos No
Slide 15: Asset Quality
Asset Quality NPL Ratio and NPL Cover (%) (1) NPA Ratio and NPA Cover (%) 302 303 305 191 200 184 255 209 153 156 200 205 204 2 195 144 140 205 150 131 1 155 0.50 0.70 0.28 0.61 0.11 0.14 0.17 0.41 105 100 0 55 -0.15 -0.22 -0.09 50 -0.66 5 -0.84 -1 -1.08 -45 '10 '11 '12 '13 '14 '15 '16 -2 0 NPL Rati
Slide 16: Capital Strength
Capital Strength Total CAR (%) Major Philippine Banks’ Capitalization (%) (2) Median Tier 1 CAR = 12.5% Median Total CAR = 15.5% 25 20.5 21.8 20.3 20.5 20 16.7 16.2 18.4 18.0 15.7 15.5 19.0 16.3 18.2 15.5 15.2 18.0 15.8 13.4 13.0 15 12.3 12.2 14.7 15.1 12.9 13.0 14.3 12.5 12.1 12.2 10.9 11.3 10 10.5
Slide 17: Dividends
Dividends Dividend Per Share (PhP) (1)(3) Dividend Yield (%) (2) 2.5 25% 20% 20% 2.0 20% 3.2 0.5 1.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 15% 2.3 2.1 1.0 10% 1.5 1.5 1.4 1.3 1.5 1.1 1.3 0.5 1.0 1.0 1.0 1.0 1.0 1.0 5% 0.0 0% '09 '10 '11 '12 '13 '14 '15 '16 '09 '10 '11 '12 '13 '14 '15 '16 Cash - Special Cash -
Slide 18: Annex
6 SECURITY BANK Annex
Slide 19: Key Financials
Key Financials Net Income After Tax Total Resources 8,554 7,699 695 7,516 7,160 7,164 6,682 532 5,012 397 348 3,062 259 2,709 2,310 215 1,901 166 129 138 146 1,160 105 122 74 88 631 694 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 To
Slide 20: 2012-2016 Initiatives
2012-2016 Initiatives Security Bank Savings › Acquisition closed – Feb 1, 2012 ; Purchase price - PhP 1.3bn, all cash; price-to-book – 2.8x (Formerly Premiere › Branches: 38 all in Metro Manila & Luzon, 10 branches relocated to restricted area Development Bank) › Rebranded as Security Bank Savings -
Slide 21: Leadership Team
Leadership Team Alberto Villarosa Alfonso Salcedo, Jr. Eduardo Olbes Ma. Cristina Tingson Leslie Cham Chairman President and Chief Executive Vice President, Executive Vice President, Executive Vice President, Executive Officer Wholesale Banking Retail Banking Branch Banking Over 30 years of experien
Slide 22: Track Record of Excellence
Track Record of Excellence 2016 2016 2016 2015 2015 2015 Best Improved Retail One of the Best Mid- Bank of the Year, Best Bank in the Bank (APAC), Highly Commended: Bank of the Year, Cap Companies, Philippines Philippines Best Brand Initiative, Best Bancassurance Philippines Philippines Best Mortgag