EM ASIA CREDIT: Security Bank Corporation: Q3 earnings released
(SECBPM, Baa2neg/NR/NR)
"*SECURITY BANK 9M NET INCOME 9.1B PESOS" - BBG
"*SECURITY BANK 9M NET INTEREST INCOME 37.2B PESOS" - BBG
Solid 3Q results, neutral, bonds trading close to peers
Philippines Security Bank Corporation has reported a solid set of results, in which 9M25 net interest income grew 15% YoY to PHP37.2bn, supporting a net interest margin of 4.70% versus 4.56% in 1H25. The performance was driven by increased loan growth (net loans +8% YoY) and more a favourable deposit mix.
Asset quality has improved with the gross non-performing loan ratio at 3.02% versus 3.08% in the year-ago period. In addition, the non-performing loan reserve cover increased to 86%, versus 79% a year-ago. Capital adequacy also slightly improved with the CET1 ratio at 12.7% versus 12.3% in the prior quarter.
In terms of valuations, the SECBPM USD 29s are trading around 6bp wide to similarly rated Bank of Philippine Islands (BPIPM, Baa2/BBB+/BBB-), which reported 9M25 of NIM of 4.6% and at CET1 14.9%., having outperformed the last couple of months.
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Historical bullets
BOBL TECHS: (Z5) Bullish Theme
- RES 4: 119.000 Round number resistance
- RES 3: 118.818 61.8% of the Apr 7 - Aug 15 bear leg (cont.)
- RES 2: 118.680 2.000 proj of the Oct 6 - 8 - 9 price swing
- RES 1: 118.630 High Oct 14
- PRICE: 118.470 @ 06:15 BST Oct 15
- SUP 1: 118.150/117.992 Low Oct 13 / 20-day EMA
- SUP 2: 117.710 Low Oct 6
- SUP 3: 117.630 Low Oct 1
- SUP 4: 117.470 Low Sep 25 and a key support
A strong rally in Bobl futures on Friday followed by a bullish start to this week’s session reinforces the current uptrend that started Sep 25. The break higher has resulted in a breach of resistance at 118.400, the Sep 8 and 10 high. This break strengthens a bullish condition and sights are on 118.680, a Fibonacci projection. On the downside, initial key support lies at 117.992, the 20-day EMA. A breach of this EMA is required to signal a possible reversal.
GBPUSD TECHS: Bear Threat Still Present
- RES 4: 1.3789 High Jul 1 and key resistance
- RES 3: 1.3726 High Sep 17
- RES 2: 1.3661 High Sep 18
- RES 1: 1.3422/3527 20-day EMA / High Oct 1 and a pivot level
- PRICE: 1.3353 @ 06:28 BST Oct 15
- SUP 1: 1.3249 Low Oct 14
- SUP 2: 1.3220 0.764 proj of the Sep 17 - 25 - Oct 1 price swing
- SUP 3: 1.3142 Low Aug 1 and a key support
- SUP 4: 1.3041 Low Apr 14
A short-term bear condition in GBPUSD remains intact. Recent weakness has resulted in the break of a key short-term support at 1.3333, the Sep 3 low. This signals scope for a deeper retracement. Attention is on 1.3280, a Fibonacci retracement, it has been pierced. A clear break of it would open key support at 1.3142, the Aug 1 low. Initial resistance to watch is unchanged at 1.3422, the 20-day EMA.
LOOK AHEAD: UK Timeline of Key Events (Times BST)
| Date | Time | Period | Event |
| 15-Oct | 0900 | --- | BOE Ramsden Panel at Resolution Mechanism Conference |
| 15-Oct | 1645 | --- | BOE Breeden in Panel on Financial Regulation |
| 15-Oct | 1900 | --- | BOE Breeden in Panel at Fintech Foundation |
| 16-Oct | 0700 | Aug | GDP / Services / Production / Trade / Construction |
| 16-Oct | 0930 | --- | BOE Credit Conditions Survey |
| 16-Oct | 1400 | --- | BOE Mann in Panel on MonPol and Trade Shocks |
| 16-Oct | 1545 | --- | BOE Mann in MonPol Panel at IMF/World Bank Meetings |
| 16-Oct | 1930 | --- | BOE Greene in Panel on UK/EU Relations |
| 17-Oct | 1035 | --- | BOE Pill Speech at Institute of Chartered Accountants |
| 17-Oct | 1200 | --- | BOE Greene Roundtable at Atlantic Council |
| 17-Oct | 1730 | --- | BOE Breeden in Panel at IMF/World Bank Meetings |
| 18-Oct | 1400 | --- | BOE Bailey at G30 International Banking Seminar |
| 21-Oct | 0700 | Sep | Public Sector Finances |
| 21-Oct | 0930 | --- | BOE Saporta Fireside Chat at Islamic Development Bank |
| 22-Oct | 0700 | Sep | Consumer inflation report / Producer Prices |
| 23-Oct | 1100 | Oct | CBI Industrial Trends |
