Security Bank income rises 4 percent to P6 billion

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August 15, 2026 | 12:00am

MANILA, Philippines — Security Bank Corp. booked a four-percent increase in net income to P6.08 billion in the first half from P5.86 billion a year ago, as stronger net interest earnings and improved operating efficiency offset higher credit provisions and losses from foreign exchange and trading activities.

The bank’s net interest income surged by 33.1 percent to P32.4 billion from P24.3 billion, supported by higher interest income and a sharp reduction in funding costs. Net interest margin widened to 5.78 percent from 4.56 percent a year earlier.

Interest income rose by 5.2 percent to P39.8 billion, as earnings from loans increased by P1.2 billion on higher credit card, time, housing and auto loan balances. Income from investment securities also increased amid a larger securities portfolio.

The stronger core earnings helped lift pre-provision operating profit by 21 percent to P15.4 billion, while total revenues climbed by 11 percent to P34.9 billion. Operating expenses before credit provisions grew at a slower three percent, bringing the cost-to-income ratio down to 55.7 percent from 59.6 percent.

However, gains from its core lending business were partly offset by weaker non-interest income. Other income fell to P2.5 billion from P7.2 billion as the bank recorded a P4.27-billion net foreign exchange loss, reversing a P456-million gain a year ago.

Security Bank also posted a P385-million net trading and securities loss compared with a P275-million gain in the previous year, reflecting what the bank described as unfavorable market movements amid geopolitical developments.

Credit provisions likewise increased by nearly 50 percent to P7.59 billion from P5.07 billion as the bank maintained what it called a prudent approach to risk management.

Despite the higher provisions, asset quality improved, with the gross nonperforming loan ratio easing to 3.04 percent from 3.16 percent a year ago. NPL reserve cover rose to 85 percent from 79 percent.

For the second quarter alone, net income reached P3.38 billion, up by 11 percent from P3.04 billion in the same quarter last year.

“As Security Bank marks its 75th year, we are building momentum with discipline,” Security Bank president and CEO Victor Lee said.

“We grew revenues faster than expenses, improved efficiency, strengthened reserve cover and maintained strong capital and liquidity. Our focus is to keep growing responsibly while making banking simpler, faster, and more responsive for the customers and businesses we serve,” he said.

Net loans stood at P675 billion at end-June, one percent higher year on year. Compared with the P696.6 billion recorded at end-2025, however, loans declined as lower commercial and retail balances outweighed growth in lending to micro, small and medium enterprises.

Deposits totaled P891 billion, with low-cost current and savings accounts growing eight percent from a year ago and accounting for 52 percent of deposits, up from 49 percent.

Security Bank ended June with P1.19 trillion in assets and P155.7 billion in shareholders’ capital. Its common equity tier 1 ratio improved to 12.6 percent, while its capital adequacy ratio rose to 13.5 percent.