Security Bank Corp. (philippines) · PSE:SECB
Security Bank Corp. (philippines) — Security Bank — H1 2020 Earnings Presentation
17 slides from Security Bank Corp. (philippines)'s earnings presentation, Aug 17, 2020
Slide 1: H1-2020 Results Highlights
H1-2020 Results Highlights By: Sanjiv Vohra, President & CEO August 17, 2020
Slide 2: Total Revenues and Net Profit
Total Revenues and Net Profit Total Revenues Net Profit ₱25.9 Billion ₱5.7 Billion +68% 25.9 +14% +₱10.5 B 5.7 5.0 +₱0.7 B 15.4 H1-2019 H1-2020 H1-2019 H1-2020 2
Slide 3: Pre-Provision Operating Profit
Pre-Provision Operating Profit Pre-Provision Operating Profit ₱15.6 Billion +120% 15.6 +₱8.5 B 7.1 H1-2019 H1-2020 3
Slide 4: Net Interest Income
Net Interest Income Net Interest Income Net Interest Margin ₱15.8 Billion 4.64% +34% 15.8 +103bps 4.64% +₱4.0 B 11.8 3.61% H1-2019 H1-2020 Q2-2019 Q2-2020 4
Slide 5: Total Loans and Total Deposits
Total Loans and Total Deposits Total Loans* Total Deposits ₱450 Billion ₱511 Billion +14% 511 +7% 450 449 421 +₱62 B +₱27 B 100 24% 124 27% 247 48% 194 43% +27% 322 76% 325 73% 255 57% 264 52% Jun. 30, 2019 Jun. 30, 2020 Jun. 30, 2019 Jun. 30, 2020 *Total loans (and retail loans) excludes personal l
Slide 6: Total Loans and Total Deposits
Total Loans and Total Deposits Total Loans* Total Deposits ₱450 Billion ₱511 Billion +2% 461 -2% 503 511 450 +₱8 B -₱11 B 128 28% 124 27% 242 48% +2% 247 48% 333 76% 325 73% 260 52% 264 52% Mar. 31, 2020 Jun. 30, 2020 Mar. 31, 2020 Jun. 30, 2020 *Total loans (and retail loans) excludes personal loan
Slide 7: Non-Interest Income
Non-Interest Income Total Non-Interest Income Securities Trading Gains ₱10.0 Billion ₱7.2 Billion 7.2 +183% 10.0 +587% +₱6.5 B 1.7 +₱6.1 B 1.0 3.5 7.2 1.9 1.0 0.6 1.2 H1-2019 H1-2020 H1-2019 H1-2020 Service Charges, Fees & Commissions Non-Interest Income - Others ₱1.7 Billion ₱1.2 Billion 1.9 -10% +
Slide 8: Cost-to-Income Ratio and Operating Expense
Cost-to-Income Ratio and Operating Expense Cost-to-Income Ratio Operating Expense* 39.7% ₱10.3 Billion +24% 53.7% 10.3 +₱2.0 B YoY growth 8.3 +17% 39.7% 3.2 Compensation and fringe benefits +18% 2.8 Taxes and licenses 1.8 +5% Depreciation and amortization 1.5 1.2 -5% 0.2 Occupancy costs 1.1 +44% 0.2
Slide 9: Manpower Headcount
Manpower Headcount Manpower Headcount 6,755 Headcount QoQ: +0.5% YTD: +2% 6,625 6,721 6,755 YoY: +9% 6,206 Jun. 30, 2019 Dec. 31, 2019 Mar. 31, 2020 Jun. 30, 2020 9
Slide 10: Asset Quality
Asset Quality Gross NPL Ratio and NPL Reserve Cover Allowance over Total Loans 174% 3.24% 125% 128% 3.24% COVID-19 ECQ/MECQ +195bps Moratorium Period (Mar 17 to May 31, 2020) 1.59% 1.58% 1.10% 1.29% Jun. 30, 2019 Mar. 31, 2020 Jun. 30, 2020 Jun. 30, 2019 Jun. 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 9.2% 1.5% 8.8% +39bps 9.2% +20bps 1.5% 1.3% H1-2019 H1-2020 H1-2019 H1-2020 11
Slide 12: Balance Sheet
Balance Sheet Total Assets Total Liabilities ₱740 777 Billion ₱613 Billion 740 662 613 55% 29% 61% 40% 38% 33% 22% 43% 19% 12% 17% 9% 7% 5% 5% 4% Jun. 30, 2019 Jun. 30, 2020 Jun. 30, 2019 Jun. 30, 2020 Liquidity Ratios CET 1 and Total CAR 18.8% and 19.7% Liquidity Coverage Ratio (LCR) 133% 19.2% 18.
Slide 13: Quarterly Financial Highlights
Quarterly Financial Highlights Total Revenues Net Interest Income ₱12.6 Billion 13.2 12.6 ₱7.8 Billion 8.0 8.1 7.8 7.0 9.8 6.1 8.8 7.9 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Pre-Provision Operating Profit Quarterly Net Interest Margin ₱7.6 Billion 8.0 7.6 4.6
Slide 14: Quarterly Financial Highlights
Quarterly Financial Highlights Operating Expenses Provisions ₱5.0 Billion ₱5.3 Billion 5.7 5.2 5.0 5.3 4.6 4.5 4.2 2.4 1.1 0.3 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Net Income ₱2.8 Billion 2.7 2.9 2.8 2.6 2.4 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 14
Slide 15: Summary Themes: H1-2020
Summary Themes: H1-2020 1. NIM: YoY growth driven by loans and low-cost deposits 2. Trading Gains: 1H trading environment allowed for opportunistic gains 3. Allowances & Provisions: Proactive provisioning stance takes Allowance to 3.24% of loans 4. Balance Sheet: Growth in low-cost deposits vs. high
Slide 16: Four Areas of Focus
Four Areas of Focus We will continue to invest to position the Bank better in the “new normal”. 1. Building Contact Center Capacity and Capability 2. Refreshing our Collections Framework 3. Speeding Up Retail Digital Platform Delivery 4. Upgrading the Cash Portal for our Wholesale Clients 16
Slide 17: H1-2020 Results Highlights
H1-2020 Results Highlights By: Sanjiv Vohra, President & CEO August 17, 2020