18 slides from Security Bank Corp. (philippines)'s earnings presentation, Nov 17, 2021
Slide 1: 3Q21 / 9M21 Results Highlights
3Q21 / 9M21 Results Highlights By: Sanjiv Vohra, President and CEO November 17, 2021
Slide 2: Total Revenues
Total Revenues Total Revenues Total Revenues (excluding Trading Gains) ₱27.5 Billion ₱26.4 Billion 40.2 -32% 27.9 -5% 26.4 -₱12.8 B 27.5 -₱1.4 B 9M-2020 9M-2021 9M-2020 9M-2021 Profit Before Tax Net Income ₱7.6 Billion ₱4.8 Billion 7.6 +103% 6.7 -27% +3.9 B -₱1.8 B 4.8 3.8 9M-2020 9M-2021 9M-2020 9M
Slide 3: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net Interest Income Net Interest Margin ₱20.5 Billion 4.37% 23.4 4.89% -52bps -12% 20.5 4.37% -₱2.9 B 9M-2020 9M-2021 9M-2020 9M-2021 3 Note: Numbers may not sum up due to rounding
Slide 4: Non-Interest Income
Non-Interest Income Total Non-Interest Income Securities Trading Gains ₱7.0 Billion ₱1.1 Billion -59% 12.4 16.8 -92% 2.6 -₱9.9 B -₱11.3 B 7.0 12.4 3.2 1.1 1.1 1.9 2.7 9M-2020 9M-2021 9M-2020 9M-2021 Service Charges, Fees & Commissions Non-Interest Income - Others ₱3.2 Billion ₱2.7 Billion 2.7 +24% 3
Slide 5: Cost-to-Income Ratio and Operating Expense
Cost-to-Income Ratio and Operating Expense Cost-to-Income Ratio Operating Expense* 57.3% 57.3% ₱15.7 Billion 38.4% 15.4 +2% 15.7 +₱0.3 B YoY growth 4.9 5.1 +4% Compensation and fringe benefits 2.6 2.5 -1% 9M-2020 9M-2021 Taxes and licenses 1.7 1.9 +10% Manpower Headcount 0.3 0.3 Depreciation and amo
Slide 6: Total Loans and Total Deposits
Total Loans and Total Deposits Total Loans* Total Deposits ₱430 Billion ₱522 Billion 0% YoY +20% 522 431 430 YoY -₱0.1 B 436 +₱86 B 114 27% -9% 103 25% 300 58% +17% 257 59% +3% 327 75% 317 73% +24% 178 41% 222 42% Sep. 30, 2020 Sep. 30, 2021 Sep. 30, 2020 Sep. 30, 2021 *Loans (net of allowance); Gro
Slide 7: Asset Quality
Asset Quality Gross NPL Ratio and NPL Reserve Cover Allowance over Total Loans 120% 4.14% 103% 91% 4.30% 4.38% 4.14% 3.93% 4.15% 3.40% Mar. 31, 2021 Jun. 30, 2021 Sep. 30, 2021 Mar. 31, 2021 Jun. 30, 2021 Sep. 30, 2021 7
Slide 8: Provisions for Credit Losses
Provisions for Credit Losses Provisions for Credit Losses Provisions per Segment In Php millions 9M-2020 9M-2021 21.1 Retail 14,197 562 -81% Wholesale 2,293 4,659 -₱17.0 B Financial Markets 13 (4) Others 4,541 (1,127) Total 21,044 4,090 4.1 In Php millions Q2-2021 Q3-2021 Retail (285) 142 Wholesale
Slide 9: Balance Sheet and Key Financial Ratios
Balance Sheet and Key Financial Ratios Total Assets Total Liabilities ₱699 Billion 699 ₱574 Billion 651 527 574 62% 66% 49% 52% 16% 19% 34% 39% 23% 3% 15% 9% 1% 5% 6% 4% Sep. 30, 2020 Sep. 30, 2021 Sep. 30, 2020 Sep. 30, 2021 Liquidity Ratios CET 1 and Total CAR Liquidity Coverage Ratio (LCR) 157% 1
Slide 10: Quarterly Financial Highlights
Quarterly Financial Highlights Total Revenues Total Revenues (excluding Trading Gains) ₱9.1 Billion ₱9.2 Billion 14.4 10.1 8.8 9.6 9.1 9.2 9.2 9.1 9.2 8.1 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 10
Slide 11: Quarterly Financial Highlights
Quarterly Financial Highlights Net Interest Income Net Interest Margin ₱6.9 Billion 4.32% 7.6 4.90% 4.88% 7.3 6.6 6.9 6.9 4.22% 4.29% 4.32% Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Low-Cost Deposits ₱286 Billion +2% +5% +5% +3% 286 300 257 266 272 Q3-2020 Q4-20
Slide 12: Quarterly Financial Highlights
Quarterly Financial Highlights Total Loans* Total Deposits ₱430 Billion ₱522 Billion 0% 522 QoQ 522 +1% -₱0.2 B 425 QoQ 430 +₱5 B 106 25% -2% 103 25% 286 55% +5% 300 58% 319 75% +2% 327 75% 236 45% -6% 222 42% Jun. 30, 2021 Sep. 30, 2021 Jun. 30, 2021 Sep. 30, 2021 *Loans (net of allowance); Gross L
Slide 13: Quarterly Financial Highlights
Quarterly Financial Highlights Non-Interest Income Service Charges, Fees & Commissions ₱2.2 6.8 Billion ₱1.1 Billion 1.0 1.1 1.1 1.1 0.9 2.9 2.6 2.1 2.2 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 13
Slide 14: Quarterly Financial Highlights
Quarterly Financial Highlights Operating Expenses Provisions ₱5.4 Billion ₱1.610.1 Billion 5.2 5.1 5.3 5.4 4.3 5.3 2.0 1.6 0.4 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Pre-Provision Operating Profit Net Income ₱3.79.2 Billion ₱1.7 Billion 5.9 3.7 4.3 3.7 1.6 1.
Slide 15: Summary
Summary 1. Loans: Gross Loans +1% QoQ. Decrease in Retail* (-3% QoQ; -12% YoY) but Increase in Wholesale* (+2% QoQ; +3% YoY). 2. NIM: Up on a Quarterly Sequential Basis. 3. Trading Gains: Muted given rate movements. 4. Credit Provisions: • Retail portfolio metrics continue to improve and release pro
Slide 16: 2021 Themes
2021 Themes 1. Our Vision: To become the most customer-centric bank in the Philippines The Philippines’ Best Bank 2. Core client engagement in retail and wholesale segments Best Bank for Best Retail Bank High Net Worth Clients in the Philippines in the Philippines 3. Continue to invest in strategic
Slide 17: Transaction Banking Digital Transformation
Transaction Banking Digital Transformation ELECTRONIC PAYMENTS SALES TRANSFORMATION A Corporate Account using a Complex Digibanker Module has a • Substantial increase in electronic • Automated Sales Proposal process payment transactions • Faster turnaround time for sales deposit balance that is 9x m
Slide 18: 3Q21 / 9M21 Results Highlights
3Q21 / 9M21 Results Highlights By: Sanjiv Vohra, President and CEO November 17, 2021