17 slides from Security Bank Corp. (philippines)'s earnings presentation, Nov 16, 2020
Slide 1: 9M-2020 Results Highlights
9M-2020 Results Highlights By: Sanjiv Vohra, President and CEO November 16, 2020
Slide 2: Total Revenues and Net Profit
Total Revenues and Net Profit Total Revenues Net Profit ₱40.2 Billion ₱6.7 Billion 40.2 7.7 +66% -13% 6.7 -₱1.0 B +₱16.0 B 24.2 9M-2019 9M-2020 9M-2019 9M-2020 2
Slide 3: Pre-Provision Operating Profit
Pre-Provision Operating Profit Pre-Provision Operating Profit ₱24.8 Billion 24.8 +120% +₱13.5 B 11.3 9M-2019 9M-2020 3
Slide 4: Net Interest Income
Net Interest Income Net Interest Income Net Interest Margin ₱23.4 Billion 4.90% +24% 23.4 4.90% +88bps 18.9 +₱4.5 B 4.02% 9M-2019 9M-2020 Q3-2019 Q3-2020 4
Slide 5: Total Loans and Total Deposits
Total Loans and Total Deposits Total Loans* Total Deposits ₱431 Billion ₱436 Billion -10% 487 437 -2% 431 -₱51 B 436 -₱6 B 111 25% 114 26% 205 42% +26% 257 59% 326 75% 317 74% 282 58% 178 41% Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 *Total loans (and retail loans) excludes personal lo
Slide 6: Total Loans and Total Deposits
Total Loans and Total Deposits Total Loans* Total Deposits ₱431 illion ₱436 Billion 450 -4% 511 -15% 431 436 -₱19 B -₱75 B 124 27% 114 26% 247 48% +4% 257 59% 325 73% 317 74% 264 52% 178 41% Jun. 30, 2020 Sep. 30, 2020 Jun. 30, 2020 Sep. 30, 2020 *Total loans (and retail loans) excludes personal loa
Slide 7: Non-Interest Income
Non-Interest Income Total Non-Interest Income Securities Trading Gains ₱16.8 Billion ₱12.4 Billion +218% 16.8 +774% 12.4 +₱11.5 B 2.6 +₱11.0 B 5.3 12.4 1.4 2.9 1.4 1.9 1.0 9M-2019 9M-2020 9M-2019 9M-2020 Service Charges, Fees & Commissions Non-Interest Income - Others ₱2.6 Billion ₱1.9 Billion 1.9 2
Slide 8: Cost-to-Income Ratio and Operating Expense
Cost-to-Income Ratio and Operating Expense Cost-to-Income Ratio Operating Expense* 38.4% ₱15.4 Billion +20% 15.4 53.3% YoY growth 12.9 +₱2.5 B 4.9 +15% 38.4% Compensation and fringe benefits 4.3 +7% Taxes and licenses 2.6 +4% 2.4 1.7 Depreciation and amortization -6% 0.3 Occupancy costs 1.7 0.3 +39%
Slide 9: Manpower Headcount
Manpower Headcount Manpower Headcount 6,766 Headcount QoQ: +0.2% 6,625 6,721 6,755 6,766 YTD: +2.1% 6,523 YoY: +3.7% Sep. 30, 2019 Dec. 31, 2019 Mar. 31, 2020 Jun. 30, 2020 Sep. 30, 2020 9
Slide 10: Asset Quality
Asset Quality Gross NPL Ratio and NPL Reserve Cover Allowance over Total Loans 174% 4.99% 110% 122% 4.99% +368bps COVID-19 ECQ/MECQ 4.03% Moratorium Period (Mar 17 to May 31, 2020) 1.31% 1.44% 1.58% Sep. 30, 2019 Jun. 30, 2020 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 10
Slide 11: Return on Shareholders' Equity and Return on Assets
Return on Shareholders’ Equity and Return on Assets Return on Shareholders’ Equity Return on Assets 7.3% 1.2% 9.0% -169bps -7bps 7.3% 1.3% 1.2% 9M-2019 9M-2020 9M-2019 9M-2020 11
Slide 12: Balance Sheet
Balance Sheet Total Assets Total Liabilities ₱651 807 Billion ₱527 Billion 651 689 527 55% 30% 66% 49% 41% 34% 19% 34% 18% 11% 15% 7% 3% 9% 4% 6% Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Liquidity Ratios CET 1 and Total CAR 19.1% and 19.9% Liquidity Coverage Ratio (LCR) 138% 19.1% 19.
Slide 13: Quarterly Financial Highlights
Quarterly Financial Highlights Total Revenues Net Interest Income ₱14.4 Billion 13.2 14.4 ₱7.6 Billion 8.0 8.1 7.8 7.6 12.6 7.0 9.8 8.8 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Pre-Provision Operating Profit Quarterly Net Interest Margin ₱9.2 Billion 8.0 9.2 4.
Slide 14: Quarterly Financial Highlights
Quarterly Financial Highlights Operating Expenses Provisions 10.1 ₱5.24.6 Billion 5.2 5.0 5.2 ₱10.1 Billion 4.5 5.7 5.3 2.4 1.1 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Net Income ₱1.0 Billion 2.7 2.9 2.8 2.4 1.0 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 14
Slide 15: Summary Themes: 9M-2020
Summary Themes: 9M-2020 1. NIM: Driven largely by funding cost improvements 2. Trading Gains: 9M trading environment allowed for opportunistic gains 3. Allowances & Provisions: Proactive provisioning stance takes allowances to 4.99% of loans 4. Balance Sheet: Deposit funding mix shifted to low cost
Slide 16: Five Areas of Focus
Five Areas of Focus Focus investments to position Bank to address the “new normal”. 1. Building Contact Center Capacity and Capability 2. Speeding Up Retail Digital Platform Delivery 3. Upgrading the Cash Portal for our Wholesale Clients 4. Refreshing our Collections Framework 5. Service as a Differ
Slide 17: 9M-2020 Results Highlights
9M-2020 Results Highlights By: Sanjiv Vohra, President and CEO November 16, 2020