Security Bank (SECB) Q2 2024 earnings summary

Executive summary

• Achieved 19% year-over-year loan growth and 29% year-over-year deposit growth, reflecting robust business momentum.

• Net income for the first half of 2024 reached ₱5.44B, up from ₱4.92B year-over-year, with EPS at ₱7.22 versus ₱6.52.

• Net interest income surged 38% year-over-year, with pro-forma net interest margin up 11 basis points quarter-over-quarter.

• Total assets rose to ₱948.1B as of June 30, 2024, up ₱76.6B from year-end 2023, driven by increases in loans, securities, and other earning assets.

• Capital adequacy remains strong with a CAR of 14.79%, well above regulatory minimums.

Financial highlights

• Total revenues reached ₱25.7 billion in H1-2024, up 24% from H1-2023.

• Net interest income for H1 2024 was ₱21.66B, up from ₱15.75B year-over-year.

• Net income rose 11% year-over-year to ₱5.4 billion.

• Service charges, fees, and commissions increased 74% year-over-year to ₱4.9 billion.

• Operating expenses (excluding provisions) grew 20% year-over-year to ₱15.0 billion.

Outlook and guidance

• Continued focus on technology investments and digital transformation to drive future growth.

• Liquidity remains robust with a liquid assets to total assets ratio of 35.67% as of June 30, 2024.

• No anticipated liquidity or cash flow issues in the next 12 months; no significant events or uncertainties reported.