15 slides from Security Bank Corp. (philippines)'s earnings presentation, Aug 7, 2018
Slide 1: H1-2018 Results Highlights
H1-2018 Results Highlights By: Mr. Alfonso L. Salcedo, Jr., President & CEO August 7, 2018
Slide 2: H1-2018 Net Income of PhP 4.3 Billion
H1-2018 Net Income of PhP 4.3 Billion Lower by 18% YoY due to: Trading Gains • Lower Trading Gains 1,118 • Higher Provision for Income Taxes -59% (₱655 M) Net Income 463 ₱4.3 billion 5.2 -18% H1-2017 H1-2018 (₱951 M) 4.3 Provision for Income Taxes 1,190 +55% 766 ₱424 M H1-2017 H1-2018 2 H1-2017 H1-2
Slide 3: Net Interest Income from Customer Loans and Deposits Increased by 34%
Net Interest Income from Customer Loans and Deposits Increased by 34% Interest income from financial investments decreased by 13% on lower securities portfolio Net Interest Income from Loans Interest Income from Financial & Deposits Investments ₱7.4 billion ₱4.8 billion 7.4 +34% 5.5 +₱1.8 B 5.5 -13%
Slide 4: Total Net Interest Income Up 8%
Total Net Interest Income Up 8% Net Interest Income ₱10.0 billion +8% 10.0 9.3 +₱0.7 B H1-2017 H1-2018 4
Slide 5: Deposit Growth Accelerated to 17% YoY
Deposit Growth Accelerated to 17% YoY • From 11% YoY Growth in Q1-2018 • H1-2018 Low Cost Deposits up 15% YoY ; High Cost Deposits up 18% Total Deposits ₱443 Billion +17% 443 380 +₱63 B +18% 268 228 152 +15% 175 H1-2017 H1-2018 5 *Numbers may not sum due to rounding
Slide 6: Loan Portfolio Up 12% YoY
Loan Portfolio Up 12% YoY • Consumer Loans accelerated growth to 50% • Wholesale Loans up 7% Total Loans ₱383 Billion +12% 383 340 +₱43 B +50% 69 46 127 118 +7% 172 184 H1-2017 H1-2018 6 *Numbers may not sum due to exclusion of Other Receivables
Slide 7: Consumer Loans as a Percentage of Total Loans Increased to 18%
Consumer Loans as a Percentage of Total Loans Increased to 18% H1-2017 H1-2018 14% 18% 48% 51% 35% 34% 7
Slide 8: Net Interest Spread on Loans & Deposits Improved
Net Interest Spread on Loans & Deposits Improved Quarter-on-Quarter Year-on-Year Net Interest Spread on Loans & Deposits up +7 bps up +39 bps at 4.27% in Q2-2018 8
Slide 9: Service Charges, Fees and Commissions Up 16% to PhP 1.3 Billion
Service Charges, Fees and Commissions Up 16% to PhP 1.3 Billion Broad-based growth, led by Bancassurance, Credit Cards and Loan Fees in PhP Millions H1-2018 H1-2017 YoY % Bancassurance 292 171 +71% Credit Cards 251 172 +46% Loan Fees 227 176 +29% Deposit Charges 265 222 +20% Stock Brokerage 138 114
Slide 10: Asset Quality Remained Healthy
Asset Quality Remained Healthy • Gross NPL Ratio down to 0.6% • NPL Reserve Cover up to 261% 261% NPL Reserve Cover 220% 0.7% Gross NPL Ratio 0.6% 1H-2017 1H-2018 10
Slide 11: Cost-to-Income Ratio at 54.6%
Cost-to-Income Ratio at 54.6% 12.9% Opex growth was driven by investments in digitalization & information technology transformation Operating Expenses* Cost-to-Income Ratio ₱6.71 Billion 54.6% +12.9% 6.71 54.6% 5.94 48.8% H1-2017 H1-2018 H1-2017 H1-2018 *excluding Provisions for Credit and Impairmen
Slide 12: Sustained Strong Capital Adequacy Ratios
Judicious Use of Capital Resulted in Sustained Strong Capital Adequacy Ratios Core Equity Tier (CET) 1 at 16.2% and Total Capital Adequacy Ratio at 18.5%, among the highest in the top ten private domestic universal banks CET 1 and Total CAR 16.2% and 18.5% 19.0% 18.5% 16.6% 16.2% H1-2017 H1-2018 12
Slide 13: Balance Sheet: Asset & Funding Structure
Balance Sheet: Asset & Funding Structure • Total Assets at PhP 722 B • Shareholders’ Capital at PhP 107 B Total Assets (PhP B) Total Liabilities and Capital (PhP B) 722 722 694 694 642 89 642 89 102 507 507 219 198 443 413 81 347 366 222 31 366 36 290 59 175 28 40 101 45 47 13 247 12 383 39 370 158
Slide 14: Summary: Reiterating Our 2018 Key Objectives
Summary: Reiterating Our 2018 Key Objectives I. Improve Net Interest Margin by: • Aggressively growing PhP low-cost CASA • Sustaining growth trajectory of Retail Loans, particularly higher margin products II. Improve Fee Income III. Profitably Grow Wholesale Business (corporate & middle market) IV.
Slide 15: H1-2018 Results Highlights
H1-2018 Results Highlights By: Mr. Alfonso L. Salcedo, Jr., President & CEO August 7, 2018