24 slides from Security Bank Corp. (philippines)'s earnings presentation, March 2014
Slide 1: Investor Presentation 2013 Results
Investor Presentation 2013 Results
Slide 2: Table of Contents
Table of Contents Our Company 3 Market Data 4 Banking Industry 5 Profitability 6 Cost Efficiency 8 Net Interest Margin 9 Fee-Based Income 10 Balance Sheet 11 Loan Portfolio 12 Deposit Portfolio 13 Asset Quality 14 Capital Strength 15 Dividends 16 Medium-Term Focus 17 Annex History 19 Key Financials
Slide 3: Our Company
Our Company Corporate Banking Total SECB SBS Corporate & Investment Investment Banking Branches* 244 204 40 Banking Equities Brokerage ATMs* 406 355 51 Transaction Banking Commercial Middle Commercial Financing LUZON Market Banking Small Business Lending 47 Branches | 23% 10 Branches | 2
Slide 4: Market Data
Market Data Shareholders(2) Security Bank Corporation Dy Group Company Identifiers 42% Bloomberg SECB.PM Reuters SECB PS Others 52% Stock Price as of March 11, 2014 111.10 52 week range (L-H) 105.70-206.40 Social Security Market Cap (PhP mm) 66,974 System 6% Market Cap (US$ mm) 1,527 Avg Daily Tradi
Slide 5: Banking Industry
SECB has roughly 4% market share in total assets, loans & deposits in 36-bank universal/commercial bank industry in the Banking Industry Philippines. SECB is driven by profitability first and foremost & will pursue aggressive build-up in market share if it improves profitability & shareholder value.
Slide 6: Profitability
Profitability Revenues (PhP Bn) Return on Equity (%) 15 14.0 12.9 40 1.8 13% 12.3 34.6 1.1 9% 11.7 1.7 14% 10 2.4 20% 4.1 29% 30 2.2 18% 24.6 7.9 5.6 43% 1.7 15% 22.0 6.6 1.2 16% 19.2 20.9 20 1.5 22% 0.7 9% 5 0.2 3% 12.9 7.5 8.1 58% 8.4 68% 5.9 75% 6.1 48% 65% 10 5.0 75% - 0 '08 '09 '10 '11 '12 '13
Slide 7: Profitability
Profitability Return on Assets (%) Assets-to-Equity 6 12 Industry 10.2 Average: 4.9 9.9 5 10 8.5 8.2 4 8 3.5 7.2 7.0 3.3 6.8 Industry 3 6 Average: 1.8% 2.2 2 1.8 1.8 4 1 2 - - '08 '09 '10 '11 '12 '13 '08 '09 '10 '11 '12 '13 7
Slide 8: Cost Efficiency
Cost Efficiency (1) Cost-to-Income Ratio (%) 7,000 Operating Expense (PhP Mn) 6,752 60 54.8 5,972 50.9 6,000 49.5 50 36% 42.6 5,000 4,710 38% 4,346 40 37.0 36.9 3,911 4,000 34% 7% 3,364 32% 7% 9% 30 30% 3,000 23% 6% 8% 7% 14% 7% 8% 8% 8% 14% 20 8% 11% 15% 2,000 14% 15% 15% 10 1,000 34% 33% 40% 37% 3
Slide 9: Net Interest Margin
Net Interest Margin Asset Yields vs. Funding Cost (%) (1) (2) Net Interest Margin (%) (2) 10 5 4.5 4.4 7.8 4.0 3.9 4.1 4.1 8 3.9 4 6.6 3.5 3.6 3.4 3.5 5.9 3.2 7.3 5.7 6 5.0 3 6.5 4.8 4.4 5.4 4 5.1 5.1 2 4.5 2.5 2.3 2.0 1.8 1.8 2 3.0 1 2.4 2.1 2.0 1.6 1.4 0 - '08 '09 '10 '11 '12 '13 '08 '09 '10 '11 '
Slide 10: Fee-Based Income
Fee-Based Income Diversified Fee Income (1) Service Charges, Fees and Commissions (PhP Mn) 1,600 1,561 Miscellaneous, 6% 92 Asset Mgt./ Deposit, 15% 1,440 Trust, 12% 181 1,255 1,280 68 193 1,120 132 1,035 Advisory, 964 39 960 229 12% 60 869 892 120 218 63 34 41 104 800 63 79 93 174 52 168 107 64 174
Slide 11: Balance Sheet: Asset & Funding Structure
Balance Sheet: Asset & Funding Structure Total Assets (PhP Bn) Total Liabilities and Capital (PhP Bn) 348 348 350 350 300 101 34% 300 259 259 250 250 206 67% 215 215 76 30% 200 82 13% 200 49 166 23% 166 142 55% 146 146 150 138 63 24% 150 138 119 55% 55 33% 11 5% 25 18% 33 23% 74 34% 111 66% 15 6% 10
Slide 12: Loan Portfolio
Loan Portfolio Total Loans (PhP Bn) By Industry(1) 165 Manufacturing 17% 165 5% Others (1) 25% 132 119 40% 7% 92 99 70 75 2% 67 35% Financial 3% 4% Intermediaries 5% 38% 66 8% 33% 38% 55% 29% 58% 33 60% Wholesale 66% 64% 58% Retail Real Estate Trade 11% 20% - Utilities '08 '09 '10 '11 '12 '13 19% Co
Slide 13: Deposit Portfolio
Deposit Portfolio Total Deposits (PhP Bn) (1) By Segment Retail/ 220 206 Corporate Commercial 75% 200 25% 180 160 142 140 134 65% 119 109 111 120 103 100 88 62% 69 By Currency 58% 80 67 60% 65 63% 71 65% 60 40 FCDU PhP 73 35% 82% 55 38% 18% 44 40% 50 42% 20 38 37% 38 35% 0 '08 '09 '10 '11 '12 '13 CA
Slide 14: Asset Quality
Asset Quality NPL Ratio and NPL Cover (%) (1) NPA Ratio and NPA Cover (%) 10 188 200 10 319 315 350 179 296 285 300 8 256 259 8 141 134 150 250 122 117 6 6 200 100 4 150 4 3.1 2.3 2.1 100 2.0 50 1.7 2 1.3 1.3 2 1.2 1.1 0.9 0.7 0.5 50 - - - - ’08 '09 '10 '11 '12 '13 ’08 '09 '10 '11 '12 '13 NPL Ratio
Slide 15: Capital Strength
Capital Strength Total CAR (%) Major Philippine Banks’ Capitalization (%) (1) Median Tier 1 CAR = 15.3% 25 25 45 Median Total CAR = 16.6% 21.8 20.3 20 18.5 18.4 20 35 19.0 18.5 19.0 17.0 16.5 18.6 16.7 16.3 15.8 15.5 15.5 15.4 18.2 15 15 25 16.0 15.4 15.1 15.4 16.0 15.0 14.7 15.1 14.6 14.5 12.5 10 1
Slide 16: Dividends
Dividends Dividend Per Share (PhP) (1) Dividend Yield (%) (2) 2.5 25% 9.0 8.0 8.0 2.0 20% 7.0 6.0 1.5 1.00 1.00 1.00 15% 5.0 1.50 1.50 1.25 4.0 1.0 10% 3.2 3.0 2.3 2.1 0.5 1.00 1.00 1.00 5% 2.0 1.5 1.3 0.50 0.50 0.50 1.0 0.0 0% 0.0 '08 '09 '10 '11 '12 '13 '08 '09 '10 '11 '12 '13 Cash - Regular Cash
Slide 17: Medium-Term Focus
Medium-Term Focus Sustain Leading Return on Shareholders’ Equity Grow the High-Margin Retail Banking Business Grow Our Core Strengths: Wholesale Banking and Financial Markets Expand Branch/Distribution Network: 260 branches in 2014 17
Slide 18: Annex
6 SECURITY BANK Annex
Slide 19: Security Bank history
Security Bank Established on June 18, Granted a universal Corporation 1951 as Security Bank banking license by BSP in celebrated its and Trust Company April 1994, allowing it to 60th anniversary Re-branding & new corporate (SBTC). broaden the scope of its in June 2011. logo launched on Feb. 23, fina
Slide 20: Key Financials
Key Financials Net Income After Tax Total Resources 8,000 7,516 400 7,160 348 7,000 6,682 350 6,000 300 259 5,012 5,000 250 215 4,000 200 166 3,062 146 3,000 2,709 150 129 138 122 2,310 105 1,901 88 2,000 100 69 74 1,160 1,000 631 694 50 502 - - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 21: Business Proposition
Business Proposition 1 Core Franchise Strength 5 2 Strategy for Well Sustainable Capitalized, Stable Growth Liquidity 4 Proven & 3 Experienced Industry-Leading Management Asset Quality Team 21
Slide 22: 2012 Initiatives
2012 Initiatives › Acquisition closed – Feb. 1, 2012 Security Bank Savings › Balance sheet: assets - PhP 5bn; loans - PhP 3bn (Formerly Premiere › Purchase price - PhP 1.3bn, all cash; price-to-book – 1.7x Development Bank) › Branches: 38 all in Metro Manila & Luzon, 10 branches to be relocated to r
Slide 23: Management Team
Management Team Alberto S. Villarosa President and Chief Executive Officer Over 30 years of experience and leadership in the industry, having worked for BPI, CityTrust and Citibank in key management positions. Rafael S. Algarra, Jr. Executive Vice President-Financial Markets Segment Over 15 years of
Slide 24: Track Record of Excellence
Track Record of Excellence 2014 2014 2014 2013 2013 Best Cash Management Best Domestic Bank, Solution (eSweep Card) - Best Investor Relations Best Domestic Debt House, Philippines, Company – Philippines, Excellence in Payment Best Managed Bank in the Best Overall Domestic Best Service Provider / Bes