Security Bank Posts Record-High Net Income of P11.2B in 2024, Up 23% YOY

Security Bank Corporation posted record-high net income of P11.2 billion in 2024, up 23% year-on-year. This is on the back of the Bank achieving record high total revenues of P54.9 billion, up 28% year-on-year. 

Net interest income increased 26% to P43.7 billion. Net interest margin for the full year is 4.73%. Total non-interest income also increased 36% to P11.2 billion. Service charges, fees and commissions grew 47% to P8.9 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 P21.9 billion. The Bank set aside P6.6 billion in provisions for credit and impairment losses in 2024, an increase versus year-ago level of P4.8 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 P2.8 billion, up 81% year-on-year. Fourth quarter revenues increased to P14.9 billion, up 27% year-on-year and up 4% quarter-on-quarter. 

Q4-2024 net interest income was P11.3 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 P2.2 billion, up 27% year-on-year and up 24% quarter-on-quarter. In Q4-2024, the Bank set aside P1.5 billion as provisions for credit losses, lower than the P2.2 billion a year ago and P1.8 billion a quarter ago. Q4-2024 pre-provision operating profit was P5.4 billion, 17% higher than year-ago level. 

Total deposits increased to P801 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 P678 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 P338 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 P1.1 trillion, up 30% year-on-year. Shareholders’ capital was at P141 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.

Security Bank is a private domestic universal bank in the Philippines with total assets of P1.1 trillion as of December 31, 2024. The Bank has been operating for 73 years since it was established in 1951. To-date, Security Bank has a total of 346 branches and 689 ATMs, Cash Recycler Machines (CRMs) and Cash Acceptance Machines (CAMs).

In 2024, Security Bank was awarded Best for High-Net-Worth in the Philippines by Euromoney/Asiamoney for four consecutive years; The Philippines' Best Bank for Corporates by Euromoney/Asiamoney for two consecutive years; Best Branch Digitisation Implementation for the Mosaic Voyager (MV) Tellering and Lobby Management System by The Asian Banker; three awards Credit Card Initiative of the Year, Sustainability Initiative of the Year, and ESG Program of the Year (Bronze) for Security Bank Wave Mastercard by Asian Banking and Finance; and Best Investor Relations Company (Philippines), Sustainable Asia Award, Asia’s Best CEO (Investor Relations), Asia’s Best CFO (Investor Relations) and Best Investor Relations Professional (Philippines) by Corporate Governance Asia for four consecutive years; 3 Golden Arrow Recognition for corporate governance excellence by the Institute of Corporate Directors (ICD).

In 2023, Security Bank was awarded Best for Mass Affluence/HNW in the Philippines by Asiamoney; Best Credit Card Product in the Philippines (for Security Bank’s Complete Cashback Platinum Mastercard) by The Asian Banker during the 2022 Asian Banker Excellence Awards; Best Retail Bank in the Philippines by Alpha Southeast Asia; Market Leader in Corporate Social Responsibility (CSR) by Euromoney; Market Leader in Diversity & Inclusion by Euromoney; Best Bank for Diversity and Inclusion by Asiamoney. 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.