18 slides from Security Bank Corp. (philippines)'s earnings presentation, Mar 20, 2019
Slide 1: FY 2018 Results Highlights
FY 2018 Results Highlights By: Mr. Alfonso L. Salcedo, Jr., President & CEO March 20, 2019
Slide 2: FY 2018 Net Income of PhP 8.6 Billion
FY 2018 Net Income of PhP 8.6 Billion Lower by 16% YoY due to: Trading Gains • Decrease in Trading Gains • Increase in Provision for Income Taxes 2.4 -85% (₱2.0 B) Net Income ₱8.6 billion 0.4 -16% 10.3 FY 2017 FY 2018 (₱1.7 B) 8.6 Provision for Income Taxes 2.5 +47% 1.7 +₱0.79 B FY 2017 FY 2018 2 FY
Slide 3: Net Interest Income from Customer Loans and Deposits Increased by 30%
Net Interest Income from Customer Loans and Deposits Increased by 30% Interest Income from Financial Investments decreased by 11% mainly due to lower level of Investment Securities at Amortized Cost Net Interest Income from Interest Income from Financial Customer Loans & Deposits Investments ₱15.7 b
Slide 4: Total Net Interest Income Grew 7%
Total Net Interest Income Grew 7% Net Interest Income ₱20.8 billion +7% 20.8 19.4 +₱1.4 B FY 2017 FY 2018 4
Slide 5: Total Deposits Increased 18%
Total Deposits Increased 18% • Low Cost Deposits increased 15% • High Cost Deposits up 21% Total Deposits ₱489 Billion +18% 489 413 +₱76 B +21% 301 250 163 +15% 188 FY 2017 FY 2018 Note: Numbers may not sum due to rounding 5
Slide 6: Total Loans Increased 12%
Total Loans Increased 12% • Consumer Loans grew 47%; Wholesale Loans grew 7% Total Loans ₱416 Billion +12% 416 370 +₱46 B +47% 84 57 127 137 +7% 185 194 FY 2017 FY 2018 Note: Numbers may not sum due to rounding 6
Slide 7: Consumer Loans Now Account for 20% of Total Loans vs. 16% A Year-Ago
Consumer Loans Now Account for 20% of Total Loans vs. 16% A Year-Ago as of Dec. 31, 2017 as of Dec. 31, 2018 16% 20% 47% 50% 34% 33% 7
Slide 8: Percent of Retail Loan Customers and Bookings that Came from E-Commerce
Percent of Retail Loan Customers and Bookings that Came from E-Commerce • Mandate to our E-Commerce Team: On-Board New Customers & Produce Revenues FY 2017 FY 2018 +137% YoY 6% 10% In terms of Number of Approved Customers 94% 90% 2% 2% +92% YoY In terms of Loan Bookings (in PhP) (excluding credit ca
Slide 9: Net Interest Spread on Loans & Deposits Further Increased to 4.72% in Q4-2018
Net Interest Spread on Loans & Deposits Further Increased to 4.72% in Q4-2018 Quarter-on-Quarter Year-on-Year Net Interest Spread on Loans & Deposits up +29 bps up +48 bps at 4.72% in Q4-2018 9
Slide 10: Overall, Net Interest Margin Further Improved to 3.4% in Q4-2018
Overall, Net Interest Margin Further Improved to 3.4% in Q4-2018 Quarter-on-Quarter Year-on-Year Overall Net Interest Margin at 3.4% up +10 bps up +13 bps in Q4-2018 10
Slide 11: Service Charges, Fees and Commissions Increased by 26% to PhP 2.9 Billion
Service Charges, Fees and Commissions Increased by 26% to PhP 2.9 Billion Driven by Bancassurance, Deposit Charges, Loan Fees and Credit Cards in PhP Millions FY 2018 FY 2017 YoY % Bancassurance 696 486 +43% Deposit Charges 582 440 +32% Loan Fees 579 375 +54% Credit Cards 575 437 +32% Stock Brokerag
Slide 12: Asset Quality Remained Healthy
Asset Quality Remained Healthy • Gross NPL Ratio at 0.7% • NPL Reserve Cover at 111% computed using the new BSP Circular 1011 guidelines on loan loss provisions which the Bank adopted in September 2018 • NPL Reserve Cover at 216% including Reserves in Retained Earnings (Restricted) 2018 2017 Gross N
Slide 13: Operating Expense Growth at 10%
Operating Expense Growth at 10% Cost-to-Income Ratio at 53.9% Operating Expenses* Cost-to-Income Ratio ₱13.8 Billion 53.9% +10% 13.8 YoY growth 49.8% 53.9% 12.5 +₱1.3 B +16% Compensation and fringe benefits 4.9 4.3 +14% Taxes and licenses 1.8 +20% 1.6 Depreciation and amortization 0.9 1.1 +24% Occup
Slide 14: Security Bank is the Best Capitalized Bank Among Top Ten Private Domestic Universal Banks
Security Bank is the Best Capitalized Bank (with the Highest CET 1 Ratio) Among the Top Ten Private Domestic Universal Banks Common Equity Tier (CET) 1 Ratio increased to 16.4% from 15.5% a year ago. Total Capital Adequacy Ratio likewise increased to 18.7% from 17.7%. CET 1 and Total CAR 16.4% and 1
Slide 15: Return on Shareholders' Equity at 8.1%
Return on Shareholders’ Equity at 8.1% Return on Shareholders’ Equity 8.1% 10.1% 8.1% FY 2017 FY 2018 15
Slide 16: Balance Sheet: Asset & Funding Structure
Balance Sheet: Asset & Funding Structure • Total Assets stood at PhP 767 B, up 10% • Shareholders’ Capital increased to PhP 109 B, up 4% Total Assets (PhP B) Total Liabilities and Capital (PhP B) 767 767 695 694 695 694 99 89 156 532 532 222 347 489 198 105 413 397 222 30 397 36 290 90 175 40 28 247
Slide 17: Our Key Objectives
Our Key Objectives I. Improve ROE with end-view to have industry-leading ROE among the top 10 private domestic universal banks II. Improve Net Interest Margin by: • Aggressively growing PhP low-cost CASA • Sustaining growth trajectory of Retail Loans, particularly higher margin products III. Profita
Slide 18: FY 2018 Results Highlights
FY 2018 Results Highlights By: Mr. Alfonso L. Salcedo, Jr., President & CEO March 20, 2019