Security Bank Corporation (PSE: SECB) posted record-high net income of PHP11.2 billion in 2024, up 23% year-on-year. This is on the back of the Bank achieving record-high total revenues of PHP54.9 billion, up 28% year-on-year.
Net interest income increased 26% to PHP43.7 billion. Net interest margin for the full year is 4.73%. Total non-interest income also increased 36% to PHP11.2 billion. Service charges, fees and commissions grew 47% to PHP8.9 billion, led by increase in fees from bancassurance, credit cards and loans.
Operating expense was 27% higher, driven by investments in manpower and technology to accelerate transformation. Cost-to-income ratio was 60.2%.
Pre-provision operating profit was up 30% year-on-year to PHP21.9 billion. The Bank set aside PHP6.6 billion in provisions for credit and impairment losses in 2024, an increase versus year-ago level of PHP4.8 billion. Gross non-performing loan ratio was 2.85%, down from 3.08% a quarter ago and 3.37% a year ago. NPL reserve cover was 81%.
Return on shareholders’ equity was 8.11%. Return on assets was 1.12%.
Quarterly Results: For the period October 1 to December 31, 2024, net income was PHP2.8 billion, up 81% year-on-year. Fourth quarter revenues increased to PHP14.9 billion, up 27% year-on-year and up 4% quarter-on-quarter.
Q4-2024 net interest income was PHP11.3 billion, up 13% year-on-year and up 6% quarter-on-quarter. Net interest margin in Q4-2024 was 4.49%. Q4-2024 service charges, fees and commissions increased to PHP2.2 billion, up 27% year-on-year and up 24% quarter-on-quarter. In Q4-2024, the Bank set aside PHP1.5 billion as provisions for credit losses, lower than the PHP2.2 billion a year ago and PHP1.8 billion a quarter ago. Q4-2024 pre-provision operating profit was PHP5.4 billion, 17% higher than year-ago level.
Balance sheet remains strong
Total deposits increased to PHP801 billion, up 32% year-on-year and up 11% quarter-on-quarter. CASA deposits increased by 16% year-on-year and by 11% quarter-on-quarter. CASA as percent of total deposits was at 52%.
Twenty-one new Security Bank branches were opened in 2024. This increased the Bank’s branch network to 346 branches as of December 31, 2024.
Net loans increased to PHP678 billion, up 26% year-on-year and up 9% quarter-on-quarter. Retail and MSME loans combined sustained its growth, up 37% year-on-year. Wholesale loans accelerated to 21% growth rate year-on-year from the 19% posted in Q3-2024. The growth in retail and MSME loans was driven by home loans which grew 19% year-on-year, credit cards which rose 64%, auto loans which grew 54%, and MSME loans which grew 54%. On a sequential quarter-on-quarter basis, retail and MSME loans combined increased 10% while wholesale loans grew 9%. Retail and MSME loans as percent of total loans was at 32%, up from 29% a year ago. Total investment securities increased to PHP338 billion, up 49% year-on-year and up 21% quarter-on-quarter.
The Bank maintains healthy liquidity, with Liquidity Coverage Ratio (LCR) at 178% and Net Stable Funding Ratio (NSFR) at 130% as of December 31, 2024.
Security Bank’s capital ratios remain healthy, with Common Equity Tier 1 Ratio at 12.9% and Total Capital Adequacy Ratio (CAR) at 13.8%. Total assets increased to PHP1.1 trillion, up 30% year-on-year. Shareholders’ capital was at PHP141 billion, up 4% year-on-year.
“Growth and investment were the defining outcomes for 2024. We thank our clients, teammates and stakeholders for the partnership and collaboration. We carry that momentum into 2025 as we leverage our investments to support clients and execute on our BetterBanking promise.” — Security Bank President & CEO, Sanjiv Vohra.