04 March 2022, Makati City, Philippines – Security Bank Corporation (PSE: SECB) posted net income of Php 6.9 billion in 2021. The passage of the CREATE law triggered a one-time Php 1.2 billion charge for deferred tax assets. Profit before tax was Php 10.3 billion, up 141% from the same period last year.
Net interest income was Php 27.5 billion, down 10% from year-ago level. Net interest margin for the full year was 4.43%, down by 27 basis points year-on-year. Total non-interest income was Php 9.4 billion, down 53% as 2020 was buoyed from extraordinary securities trading gains. Service charges, fees and commissions increased 25% to Php 4.5 billion, with fee income sources increasing from their year-ago levels. Other non-interest income excluding securities trading gains and fee income grew 34% to Php 3.7 billion.
Operating expense was up by 8% from the same period last year, driven by investments in technology and manpower to improve customer experience. The cost-to-income ratio was 57.8%.
Pre-provision operating profit (PPOP) was Php 15.5 billion. The Bank set aside Php 5.3 billion as provisions for credit losses in 2021, a significant decrease versus year-ago level of Php 26.4 billion.
Gross non-performing loan ratio was 3.94%. NPL reserve cover was 93%.
Return on shareholders’ equity was 5.57%.
For the period October 1 to December 31, 2021, net income was Php 2.1 billion, up 21% versus quarter-ago level and up 171% versus year-ago level. On a sequential quarter-on-quarter basis, total revenues increased 2% to Php 9.3 billion. Net interest income grew 1% to Php 7.0 billion. Net interest margin in Q4-2021 was 4.37%, up 5 basis points quarter-on-quarter and down 51 basis points year-on-year. Total non-interest income increased 7% to Php 2.4 billion. Service charges, fees and commissions increased 24% to Php 1.3 billion.
Operating expense in Q4-2021 was higher by 3% versus quarter-ago.
In Q4-2021, the Bank set aside Php 1.2 billion as provisions for credit losses. Pre-provision operating profit was Php 3.8 billion, 2% higher than quarter-ago level.
Balance sheet remains strong
Low-cost savings and demand deposits grew 19% and increased to 61% of total deposits. Highcost deposits increased 18%. Total deposits increased 19% year-on-year to Php 524 billion.
Gross loans stood at Php 467 billion, up 1% versus year-ago. Retail loans were down 9% year-on-year. Retail loans are 23% of total loans versus 25% a year ago. Wholesale loans increased 5% year-on-year.
On a quarter-on-quarter basis, gross loans grew 4% with wholesale loans up 6% and retail loans at the same level as previous quarter, while low-cost savings and demand deposits increased by 6% versus quarter-ago level.
“Our fourth quarter results benefitted from the easing of mobility restrictions and the resulting uplift of the economy. We are optimistic about economic activity in 2022, despite the Omicron impact in January. The Bank’s retail and wholesale teams are fully engaged to support our clients as the economy continues to reopen.” — Security Bank President & CEO, Sanjiv Vohra.
Security Bank continues to be among the country’s best capitalized private domestic universal banks. Common Equity Tier 1 Ratio was 19.1% and Total Capital Adequacy Ratio (CAR) was 19.8%. Total assets stood at Php 700 billion, up 7% year-on-year. Shareholders’ capital was at Php 125 billion, up 1%.
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About Security Bank
Security Bank is a private domestic universal bank in the Philippines with total assets of Php 700 billion as of December 31, 2021. The Bank has been operating for 70 years since it was established in 1951. Security Bank has a total of 316 branches and 663 ATMs to-date.
The Bank’s major citations in 2021 are: Philippines’ Best Bank by Euromoney; Best for HNWs (High Net Worth Clients) in the Philippines by Asiamoney; Best Retail Bank in the Philippines by Alpha Southeast Asia; and, Best Culture of Learning and Diversity Champion by LinkedIn Talent Awards.
Major awards in 2020 are: The Strongest Bank in the Philippines in 2020 by The Asian Banker; Best Bank in the Philippines for 2020 by The Lafferty Group (The Statement Magazine); and Best Retail Bank in the Philippines in 2020 by Alpha Southeast Asia.
Major awards received in 2019 are: The Best Retail Bank in the Philippines by The Asian Banker and Deposit Product of the Year – “All Access Account” by The Asian Banker; Automobile Lending Product of the Year by The Asian Banker (Philippines Awards 2019) and Deposit Product of the Year by The Asian Banker (Philippine Awards 2019); Best Bank in the Philippines by Alpha Southeast Asia and Best SME Bank in the Philippines by Alpha Southeast Asia; and Best Bank for SMEs in the Philippines by Asiamoney.
More information is available on our website: www.securitybank.com.