Security Bank Corporation reported a 23 percent year-on-year growth in net income to a record-high ₱11.2 billion in 2024, as revenues rose 28 percent to also hit an all-time high of ₱54.9 billion.
“Growth and investment were the defining outcomes for 2024. We thank our clients, teammates, and stakeholders for the partnership and collaboration,” said Security Bank President and CEO Sanjiv Vohra.
He noted that, “We carry that momentum into 2025 as we leverage our investments to support clients and execute on our BetterBanking promise.”
The bank disclosed to the Philippine Stock Exchange that its net interest income increased 26 percent to ₱43.7 billion. Net interest margin for the full year is 4.73 percent.
Total non-interest income rose by 36 percent to ₱11.2 billion. Service charges, fees, and commissions grew 47 percent to ₱8.9 billion, led by increased fees from bancassurance, credit cards, and loans.
Operating expenses were 27 percent higher, driven by investments in manpower and technology to accelerate transformation. The cost-to-income ratio was 60.2 percent.
Pre-provision operating profit was up 30 percent year-on-year to ₱21.9 billion. The bank set aside ₱6.6 billion in provisions for credit and impairment losses in 2024, an increase from the year-ago level of ₱4.8 billion.
Gross non-performing loan (NPL) ratio was 2.85 percent, down from 3.08 percent a quarter ago and 3.37 percent a year ago. NPL reserve cover was 81 percent.
Return on shareholders’ equity was 8.11 percent. Return on assets was 1.12 percent.
For the fourth quarter alone, net income surged by 81 percent to ₱2.8 billion as revenues reached ₱14.9 billion, up 27 percent year-on-year and four percent quarter-on-quarter.
Net interest income for the fourth quarter of 2024 was ₱11.3 billion, up 13 percent year-on-year and up six percent quarter-on-quarter. Net interest margin was 4.49 percent.
Service charges, fees, and commissions amounted to ₱2.2 billion, up 27 percent year-on-year and up 24 percent quarter-on-quarter.
In the fourth quarter of last year, the bank set aside ₱1.5 billion as provisions for credit losses, lower than the ₱2.2 billion a year ago and ₱1.8 billion a quarter ago.
Pre-provision operating profit was ₱5.4 billion, 17 percent higher than the year-ago level.
Total deposits increased to ₱801 billion, up 32 percent year-on-year and up 11 percent quarter-on-quarter. Current account and savings account (CASA) deposits increased by 16 percent year-on-year and by 11 percent quarter-on-quarter. CASA as percent of total deposits was at 52 percent.
Net loans increased to ₱678 billion, up 26 percent year-on-year and up nine percent quarter-on-quarter. Retail and micro, small and medium enterprise (MSME) loans combined sustained its growth, up 37 percent year-on-year.
Wholesale loans accelerated to a 21 percent growth rate year-on-year from the 19 percent posted in the third quarter of 2024.
The growth in retail and MSME loans was driven by home loans, which grew 19 percent year-on-year; credit cards, which rose 64 percent; auto loans, which grew 54 percent; and MSME loans, up 54 percent.
On a sequential quarter-on-quarter basis, retail and MSME loans combined increased 10 percent while wholesale loans grew nine percent. Retail and MSME loans as percent of total loans was at 32 percent, up from 29 percent a year ago.
Total investment securities increased to ₱338 billion, up 49 percent year-on-year and up 21 percent quarter-on-quarter.