Security Bank Corporation (SECB) posted a ₱6.1 billion net income for the first half of 2026, a 4 percent increase from the same period a year earlier, driven by higher revenues, improved operating efficiency and careful credit management. Performance picked up notably in the second quarter, with net income reaching ₱3.4 billion — up 25 percent from the first quarter and 11 percent higher than the second quarter of 2025.
Pre-provision operating profit climbed 21 percent year-on-year to ₱15.4 billion, showing stronger core earnings and progress toward steady, quality growth. Total revenues rose 11 percent to ₱34.9 billion. Net interest income reached ₱32.4 billion, supported by a net interest margin of 5.78 percent, while service charges, fees and commissions hit ₱4.2 billion. Operating expenses grew just 3 percent year-on-year — well below revenue growth — bringing the cost-to-income ratio down to 55.7 percent from 59.6 percent in the first half of 2025.
The bank maintained a careful and forward-looking approach to credit, setting aside ₱7.6 billion in provisions for credit losses over the six-month period. Asset quality improved, with the gross non-performing loan ratio falling to 3.04 percent from 3.16 percent a year earlier and 3.08 percent in the first quarter. Non-performing loan reserve coverage rose to 85 percent, up from 79 percent in the first half of 2025 and 81 percent in the first quarter of 2026.
In the second quarter alone, total revenues reached ₱17.9 billion, up 5 percent from the first quarter and 11 percent year-on-year. Pre-provision operating profit stood at ₱7.9 billion, rising 6 percent quarter-on-quarter and 19 percent year-on-year. Credit loss provisions amounted to ₱3.7 billion, lower than the ₱3.9 billion recorded in the first quarter.
The bank also reported solid liquidity and capital levels. Total deposits reached ₱891 billion, with current and savings account deposits rising 8 percent year-on-year. These low-cost deposits made up 52 percent of total deposits, compared with 49 percent a year earlier and 51 percent in the first quarter. Net loans stood at ₱675 billion, a 1 percent year-on-year increase as the bank continued shifting its portfolio toward higher-quality segments. Total investment securities amounted to ₱362 billion.
As of June 30, 2026, the bank’s liquidity coverage ratio stood at 206 percent and its net stable funding ratio at 145 percent — both well above regulatory requirements. The common equity tier 1 ratio improved to 12.6 percent from 12.2 percent in the first quarter and 12.3 percent a year earlier. The total capital adequacy ratio rose to 13.5 percent, up from 13.1 percent in the first quarter and 13.2 percent in the first half of 2025. Shareholders’ capital increased to ₱155.7 billion, up 5 percent year-on-year and 1 percent quarter-on-quarter, while total assets reached ₱1.19 trillion, a 3 percent year-on-year rise.
“As Security Bank marks its 75th year, we are building momentum with discipline,” said Victor Lee, president and CEO of Security Bank. “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.”
