SECURITY BANK Corp. saw its net profit rise by 23.4% to an all-time high in 2024, driven by record revenues.
The bank’s attributable net income climbed to a record P11.24 billion last year from P9.11 billion in 2023, it said in a disclosure to the stock exchange on Monday.
“This is on the back of the bank achieving record-high total revenues of P54.9 billion, up 28% year on year,” it said.
This translated to a return on equity of 8.11%, up from 6.95% in 2023, while return on assets was at 1.12%, rising from 1.06% a year prior.
In the fourth quarter alone, Security Bank booked a net income was P2.8 billion, up 81% year on year, with revenues rising by 27% to P14.9 billion.
“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 and Chief Executive Officer Sanjiv Vohra said.
The bank’s net interest income climbed by 25.9% to P43.72 billion last year, mainly driven by higher interest earnings from loans amid the elevated rate environment.
Net interest margin went up to 4.73% from 4.49%.
Non-interest income rose by 36.3% to P11.2 billion as service charges, fees and commissions grew 47% to P8.9 billion amid higher fees from bancassurance, credit cards and loans.
On the other hand, Security Bank’s operating expenses climbed by 26.8% to P39.69 billion due to increased investments in manpower and technology.
This resulted in a cost-to-income ratio of 60.23% last year, inching down from 60.75% a year prior.
The bank also set aside P6.6 billion in provisions for credit and impairment losses in 2024, up from P4.8 billion in 2023.
Security Bank’s net loans grew by 25.9% year on year to P677.8 billion in 2024.
“Retail and MSME (micro, small and medium enterprises) 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 the third quarter of 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%,” it said.
“Retail and MSME loans as percent of total loans was at 32%, up from 29% a year ago. Total investment securities increased to P338 billion, up 49% year on year,” it added.
Despite the increase in loans, the bank’s gross nonperforming loan (NPL) ratio improved to 2.85% last year from 3.37% in 2023.
NPL reserve cover was at 80.76%.
On the funding side, total deposits grew by 32.1% to P801.1 billion in 2024, with current account, savings account or CASA deposits rising by 16%. Its CASA ratio stood at 52%.
The loans-to-deposit ratio stood at 84.61% in 2024, down from 88.76% the year prior.
Security Bank’s assets grew by 29.6% to P1.13 trillion at end-2024.
Total equity also increased by 3.68% to P141.14 billion. Its capital adequacy ratio stood at 13.84% in 2024, down from 16.19% a year prior, while its common equity Tier 1 ratio was at 12.94%, declining from 15.30% in 2023.
Its liquidity ratio was at 36.40%, up from 34.74% in 2023.
“The bank maintains healthy liquidity, with liquidity coverage ratio at 178% and net stable funding ratio at 130% as of Dec. 31, 2024,” it added.
It opened 21 new branches in 2024, expanding its network to 346 branches as of end-2024.
Security Bank’s shares rose by 90 centavos or 1.28% to close at P71 each on Monday. — A.R.A. Inosante
