After banner year, Security Bank sees sustained momentum
Security Bank Corp. is expecting to continue its growth momentum this year after posting record earnings in 2024, with its revenues also surging to an all-time high.
In a regulatory filing on Monday, the bank led by tycoon Frederick Dy said its bottom line had expanded by 23 percent to P11.2 billion last year.
This was due to revenues climbing by 28 percent to P54.9 billion, Security Bank noted.
Net interest income likewise swelled by 26 percent to P43.7 billion.
According to Security Bank, net loans reached P678 million, up by 26 percent, driven by lending to micro, small and medium enterprises (MSMEs) and retail customers. Combined, these segments posted a 37-percent growth.
Wholesale loans also rose by 21 percent.
Despite the lending growth, nonperforming loans ratio eased to 2.85 percent from 3.37 percent a year ago.
“Growth and investment were the defining outcomes for 2024,” Security Bank president and CEO Sanjiv Vohra said in a statement. “We carry that momentum into 2025 as we leverage our investments to support clients and execute on our ‘BetterBanking’ promise.”
READ: Security Bank forges ahead as it celebrates 71 years of BetterBanking service
Return on equity was at 8.11 percent as of end-December, up from 6.95 percent the previous year.
Security Bank, the country’s seventh largest lender, ended the year with P1.1 trillion in total assets, representing a 30-percent growth.
In the fourth quarter alone, net income had ballooned by 81 percent to P2.8 billion, while revenues were up by nearly a third to P14.9 billion.
Earlier, Security Bank chief financial officer Eduardo Olbes said they were banking on retail clients and MSMEs to drive loan growth this year, although at a slower pace.
Olbes explained that this was on the back of a high base in 2024.
At the same time, Vohra said they were likely to complete the creation of a joint venture with Mitsubishi Motors and the acquisition of a 25-percent stake in Home Credit within the first half of the year.
The upcoming auto financing company with Mitsubishi is meant to help extend loans to car buyers amid a surge in domestic vehicle sales.
Vehicle sales are seen to reach a new high of 500,000 units this year as favorable economic conditions fuel Filipinos’ spending power.
In 2024, car sales in the country hit a record high of 467,252 units, up by 8.7 percent, data from the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association show.
