Security Bank Corp. reported solid growth for the first nine months of 2025, with total revenues rising 22 percent year-on-year to P48.8 billion. Net profit increased 7 percent to P9.1 billion, reflecting stronger lending activity and improved margins, despite higher provisions for credit losses.
Net interest income rose 15 percent to P37.2 billion, supported by an improved net interest margin of 4.7 percent. Non-interest income surged 52 percent to P11.6 billion, lifted by trading and FX gains. Although service fees fell due to a one-off bancassurance milestone fee in 2024, underlying fee income grew 20 percent, driven by credit cards, payments, and capital markets activity.
Operating expenses grew 20 percent as the bank continued investing in people and technology. Even so, efficiency improved, with the cost-to-income ratio easing to 58.1 percent. Pre-provision operating profit rose 24 percent to P20.4 billion.
The bank set aside P8.6 billion in credit provisions, higher than last year, but asset quality improved. The gross NPL ratio fell to 3.02 percent, while NPL cover strengthened to 86 percent. Return on equity stood at 8.22 percent, and return on assets at 1.06 percent.
In the July–September quarter, Security Bank delivered a net profit of P3.2 billion, up 6.7 percent year-on-year. Quarterly revenues grew 20 percent to P17.2 billion, with both interest and non-interest income rising. Net interest income reached P12.9 billion, while non-interest income climbed to P4.3 billion on higher trading and FX gains.
Pre-provision operating profit hit P7.7 billion, up 32 percent year-on-year, outpacing a modest 0.8 percent rise in expenses. The bank booked P3.55 billion in credit provisions for the quarter.
Deposits increased 25 percent year-on-year to PP901 billion, with CASA deposits rising 17 percent and making up nearly half of total deposits. The bank expanded to 365 branches, adding 19 new branches through November.
Loans grew 8 percent to P672 billion, driven by a 24 percent jump in retail loans—particularly strong in auto loans (+42 percent), credit cards (+27 percent), and home loans (+15 percent). Retail loans now account for 33 percent of the loan book. Investment securities rose 26 percent to P354 billion.
Liquidity and capital remained well above regulatory requirements, with an LCR of 189 percent, NSFR of 143 percent, and a CET1 ratio of 12.7 percent.
The Board approved a second-semester cash dividend of P1.50 per share, bringing 2025 dividends to P3.00 per share.
President and CEO Sanjiv Vohra said the strong performance reflects ongoing digital and operational improvements, with revenue growth consistently outpacing expenses.
