Dear Stakeholders,

2024 was a year of impressive growth. Our loans and CASA deposits growth rate doubled that of the market, a testament to the efforts of our dedicated team. The integration of new systems, processes, and technology played a crucial role in this growth, facilitating not only more agile and efficient operations but also innovative ways of working.

The year in numbers

The Bank posted a record-high Net Income of PHP11.2 billion in 2024, up 23% year-on-year. This incredible achievement was driven by record-high Total Revenues of PHP54.9 billion, up 28% year-on-year.

Our growth was fueled by a 26% increase in Net Interest Income, thanks to healthy Net Interest Margins and accelerated loan growth. Total Loans grew by 26% year-on-year, with Retail and MSME Loans increasing by 37% and Wholesale Loans by 21%. Total Non-Interest Income also rose by 36%, driven by Fee Income. Service Charges, Fees, and Commissions increased by 47% to PHP8.9 billion.

Our operating expenses reflect our strategic investments in technology and manpower to accelerate transformation and drive growth. We improved our cost-to-income ratio, which decreased to 60.2%. Our workforce grew by 13.6%, strengthening our capabilities in Branch Banking, Technology, Data, and Retail Banking, and positioning us well for future growth and enhanced customer service.

Supercharging our brand promise

The growth of the Bank was underpinned by our focus on customer satisfaction and innovation. Highlights include:

• • Strengthened retail channels with the launch of the all-new Security Bank app, which reached over 740,000 active users by year-end and CRM integration into our telephony system, facilitating efficient identity verification and record retrieval.
• • Credit card innovations which led to impressive growth in subscribers and usage. These include the Wave Mastercard, made from 100% recycled PVC and the Platinum and World Mastercard, which became the preferred choices for affluent and lifestyle segments. Furthermore, the launch of the BetterBanking Rewards program, the cards loyalty program, resulted in an increase in redemptions and a rise in billings.
• • Reorganization of our wholesale team to focus on product innovation, faster market delivery, and stronger internal processes. We also made significant strides in expanding our sustainable financing portfolio, disbursing PHP68.96 billion for green and social projects. This growth provided funding for renewable energy, green buildings, essential services, and infrastructure projects and highlighted our commitment to environmental and social goals.
• • Growth in our MSME loan portfolio with a 54% increase YoY. Moreover, we have enhanced our holistic customer propositions with offerings including Security Bank Collect, a digital payment platform and Beyond Banking Partnerships, an ecosystem of services and support.
• • Strengthening of our balance sheet as we raised long-term funds through a USD400 million EMTN Program and a PHP20 billion-peso bond, achieving the largest bond issuance to date with the highest retail participation. Additionally, the Bank saw a 49% growth in investment securities to support accrual income and to realize trading gains.
• • Unprecedented increase in Wealth TRB and a substantial increase in non-USD FX client flow volume, driven by key trade currencies.
• • Expansion of our branch network to 346 locations, widening our reach in strategic areas to better serve our customers.
• • Strides in our EVP initiative, “YOU matter,” to support and recognize our most valuable asset, our employees, as we focused on learning, engagement, and future-proofing our organization.
• • Advanced AI and analytics innovations, with new AI models for detecting online and application fraud, as well as enhancing AML case monitoring. Additionally, AI models have driven improvements in customer journeys and hyper-personalization initiatives.
• • Other modernized digital banking platforms, including our Payment Hub and Gateway and Operational Data Platform which have integrated payment rails and improved efficiencies by providing real-time data across various touchpoints.

Industry Recognition

We were both proud and humbled by many recognitions due to our people and process initiatives, including ranking #1 Philippine bank, #2 Philippine company, and #5 in employee satisfaction globally on TIME’s World’s Best Companies list. Other notable awards were Best for High-Net-Worth Clients in the Philippines by Euromoney/Asiamoney (for the fourth consecutive year), Best Corporate Bank in the Philippines by Euromoney/Asiamoney, the 3 Golden Arrow Recognition for corporate governance excellence by the Institute of Corporate Directors (ICD), and Best Investor Relations Company by Corporate Governance Asia at the 14th Asian Excellence Awards. 

In Summary

2024 marked an exceptional year of performance for the Bank, with key milestones including the highest Net Income ever recorded of PHP11.2 billion, surpassing a trillion in earnings assets, and improved asset quality with Gross NPL ratio below 3% (the lowest in two years). The 23% increase in customer base, now exceeding two million, and the expansion to 346 branches further highlight our commitment to customers and expanding our reach. 

Looking forward, we’re optimistic about building on our achievements and driving sustained profitability. We will capitalize on our investments and strategic ecosystems, including our joint venture with Mitsubishi Motors for superior auto financing services and our affiliation with Home Credit to meet evolving client needs. Our new digital apps, including the upcoming Security Bank Enterprise for corporates and Security Bank Business for MSMEs, will offer enhanced security, stability, and tailored experiences, leveraging a common tech stack for greater efficiencies and faster time to market.

We’ll remain focused on creating experiences that build loyalty and trust with customers at the heart of everything we do. This approach emphasizes not just great service but also creating meaningful experiences. We extend our heartfelt thanks to our employees for their incredible contributions, to our customers and investors for their continued trust, and to our Board for their continuous support.