18 slides from Security Bank Corp. (philippines)'s earnings presentation, Mar 4, 2021
Slide 1: FY 2020 Results Highlights
FY 2020 Results Highlights By: Sanjiv Vohra, President and CEO March 4, 2021
Slide 2: Total Revenues and Net Profit
Total Revenues and Net Profit Total Revenues Net Profit ₱50.4 Billion ₱7.4 Billion 50.4 10.1 +48% -26% -₱2.7 B +₱16.5 B 7.4 33.9 FY 2019 FY 2020 FY 2019 FY 2020 2
Slide 3: Pre-Provision Operating Profit
Pre-Provision Operating Profit Pre-Provision Operating Profit ₱30.7 Billion 30.7 +85% +₱14.1 B 16.6 FY 2019 FY 2020 3
Slide 4: Net Interest Income
Net Interest Income Net Interest Income Net Interest Margin ₱30.6 Billion 4.77% +14% 30.6 +84bps 4.77% 26.8 +₱3.8 B 3.93% FY 2019 FY 2020 FY 2019 FY 2020 4 Note: Numbers may not sum up due to rounding
Slide 5: Non-Interest Income
Non-Interest Income Total Non-Interest Income Securities Trading Gains ₱19.7 Billion ₱13.4 Billion +178% 19.7 13.4 +768% +₱12.6 B 3.6 +₱11.8 B 7.1 13.4 1.5 4.1 1.5 2.7 1.5 FY 2019 FY 2020 FY 2019 FY 2020 Service Charges, Fees & Commissions Non-Interest Income - Others ₱3.6 Billion ₱2.7 Billion 2.7 4
Slide 6: Cost-to-Income Ratio and Operating Expense
Cost-to-Income Ratio and Operating Expense Cost-to-Income Ratio Operating Expense* 39.1% ₱19.7 Billion +14% 19.7 51.1% 17.4 YoY growth +₱2.4 B +15% 39.1% 6.4 Compensation and fringe benefits 5.6 +5% Taxes and licenses 3.3 +9% 3.2 Depreciation and amortization 2.3 -3% 2.1 0.4 Occupancy costs 0.4 +20%
Slide 7: Manpower Headcount
Manpower Headcount Manpower Headcount 6,833 Headcount 6,625 6,721 6,755 6,766 6,833 QoQ: +1.0% YoY: +3.1% Dec. 31, 2019 Mar. 31, 2020 Jun. 30, 2020 Sep. 30, 2020 Dec. 31, 2020 7
Slide 8: Total Loans and Total Deposits (Year-over-Year)
Total Loans and Total Deposits (Year-over-Year) Total Loans Total Deposits ₱439 Billion ₱440 Billion -12% -2% 500 449 439 -₱60 B 440 -₱10 B 124 28% 111 25% 224 45% +19% 266 60% 325 72% 328 75% 276 55% 174 40% Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 8 Note: Numbers may not sum up due
Slide 9: Total Loans and Total Deposits (Quarter-on-Quarter)
Total Loans and Total Deposits (Quarter-on-Quarter) Total Loans Total Deposits ₱439 Billion ₱440 Billion +2% +1% 431 439 436 440 +₱8 B +₱4 B 114 26% 111 25% 257 59% +3% 266 60% 317 74% 328 75% 178 41% 174 40% Sep. 30, 2020 Dec. 31, 2020 Sep. 30, 2020 Dec. 31, 2020 9 Note: Numbers may not sum up due
Slide 10: Asset Quality
Asset Quality Gross NPL Ratio and NPL Reserve Cover Allowance over Total Loans 122% 4.70% 115% 4.70% 106% +340bps 4.03% 3.90% 1.30% 1.17% Dec. 31, 2019 Sep. 30, 2020 Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 10
Slide 11: Provisions for Credit Losses
Provisions for Credit Losses Provisions for Credit Losses Provisions per Segment 26.4 In Php millions FY 2019 FY 2020 +532% +₱22.2 B Retail 3,385 19,671 Wholesale 785 6,012 Financial Markets 4 62 4.2 Others 9 673 Total 4,183 26,418 FY 2019 FY 2020 11
Slide 12: Return on Shareholders' Equity and Return on Assets
Return on Shareholders’ Equity and Return on Assets Return on Shareholders’ Equity Return on Assets 6.16% 1.03% 8.87% -271bps -27bps 1.30% 6.16% 1.03% FY 2019 FY 2020 FY 2019 FY 2020 12
Slide 13: Balance Sheet
Balance Sheet Total Assets Total Liabilities ₱653 793 Billion ₱530 Billion 653 675 530 57% 33% 67% 50% 41% 30% 16% 33% 14% 13% 17% 7% 4% 9% 5% 4% Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Liquidity Ratios CET 1 and Total CAR 19.2% and 20.1% Liquidity Coverage Ratio (LCR) 166% 19.2% 20.
Slide 14: Quarterly Financial Highlights
Quarterly Financial Highlights Total Revenues Net Interest Income ₱10.1 Billion 13.2 14.4 ₱7.3 Billion 12.6 8.0 8.1 7.8 7.6 7.3 9.8 10.1 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Pre-Provision Operating Profit Net Interest Margin ₱5.9 Billion 9.2 4.96% 4.52% 4.6
Slide 15: Quarterly Financial Highlights
Quarterly Financial Highlights Operating Expenses Provisions ₱4.3 Billion ₱5.3 Billion 10.1 5.2 5.0 5.2 4.5 4.3 5.7 5.3 5.3 2.4 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Net Income ₱0.8 Billion 2.9 2.8 2.4 1.0 0.8 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 15
Slide 16: Summary Themes: Full Year 2020
Summary Themes: Full Year 2020 1. NIM: Significant uplift from funding cost improvement 2. Trading Gains: 2020 trading environment allowed for opportunistic gains 3. Allowances & Provisions: Credit environment remains challenged given pandemic impact. We maintain prudent posture. 4. Balance Sheet: D
Slide 17: 2021 Themes
2021 Themes 1. Core client engagement in retail and wholesale segments • Emphasis on supporting existing clients 2. Assertively utilize our strong balance sheet to pursue BetterBanking opportunities to “Build Back Better” • Investments to reshape Digital Channels: Retail, Wholesale, Contact Center •
Slide 18: FY 2020 Results Highlights
FY 2020 Results Highlights By: Sanjiv Vohra, President and CEO March 4, 2021