Security Bank (SECB) Q3 2024 earnings summary

Executive summary

• Revenue grew 28% year-over-year for the nine-month period, outpacing operating expense growth of 24%.

• Net income increased by 12% year-over-year, reaching ₱8.5 billion for 9M 2024.

• Total assets rose by ₱156.3 billion to ₱1.03 trillion as of September 30, 2024, driven by increases in loans, investment securities, and placements.

• Loans and CASA deposits grew at twice the industry rate, with strong momentum in both retail and MSME segments.

• Digital transformation advanced with the launch of a new retail mobile app in August 2024; business banking apps to follow.

Financial highlights

• Total revenues reached ₱40.02 billion, up 28% from ₱31.19 billion in 9M 2023.

• Net interest income rose 31% year-over-year to ₱32.38 billion.

• Non-interest income increased 18% to ₱7.6 billion, with service charges, fees, and commissions up 55%.

• Operating expenses (excluding provisions) grew 24% to ₱23.5 billion; total operating expenses rose to ₱28.62 billion due to higher provisions and compensation.

• Cost-to-income ratio improved to 58.8% from 60.7% year-over-year.

Outlook and guidance

• Continued focus on digital initiatives, with further app rollouts planned through Q1 2025.

• Liquidity remains strong with a liquid assets to total assets ratio of 35.87%.

• No anticipated liquidity or cash flow issues in the next twelve months.

• No significant events or uncertainties expected to impact operations.

• Opportunities identified in managing operating expenses and credit costs.