Security Bank Corp. posted stronger first-quarter earnings as higher revenues and tighter cost controls boosted core profitability, even as the lender increased provisions to cushion against evolving market risks.
Net income rose 6 percent quarter-on-quarter to P2.7 billion, while pre-provision operating profit jumped 24 percent year-on-year to P7.5 billion, underscoring the bank’s improving operating efficiency. Total revenues climbed 10 percent to P17 billion, driven mainly by growth in interest income.
Net interest income reached P15.2 billion, while non-interest income stood at P1.9 billion. Operating expenses increased by just 2 percent from a year earlier and fell 13 percent from the previous quarter, allowing the bank to improve its cost-to-income ratio to 56 percent from 61 percent a year ago.
Security Bank booked P3.9 billion in provisions for credit and impairment losses during the quarter as part of what it described as a prudent risk management strategy. Despite the higher provisioning, asset quality remained manageable, with gross non-performing loans at 3.08 percent and reserve cover at 81 percent.
“We had a solid start to the year, driven by stronger core earnings and disciplined cost management,” said Victor Lee Meng Teck. “We remain focused on sustaining operational discipline, growing responsibly, and making banking simpler, faster, and more responsive for our customers.”
The bank’s balance sheet continued to expand, with total assets rising 10 percent year-on-year to P1.2 trillion. Deposits grew 12 percent to P938 billion, supported by a 13 percent increase in low-cost CASA deposits, which accounted for 51 percent of total deposits.
Net loans reached P679.4 billion, up 5 percent from a year earlier, while investment securities stood at P370.4 billion.
Security Bank also maintained strong liquidity and capital buffers, with a liquidity coverage ratio of 198 percent and a capital adequacy ratio of 13.1 percent.
The bank expanded its branch footprint to 390 nationwide and recently secured a stable investment-grade Baa2 rating outlook from Moody’s Ratings.
