Daily Tribune
Security Bank Corporation (PSE: SECB) posted an 8 percent year-on-year increase in net income to P5.9 billion in the first half of 2025, driven by double-digit loan expansion and strong growth in both interest and non-interest revenues.
Total revenues in the January-to-June period surged 23 percent to P31.6 billion, as net interest income climbed 12 percent to P24.3 billion on the back of a wider net interest margin of 4.56 percent. Non-interest income soared 81 percent to P7.2 billion, lifted by trading gains and higher fee-based earnings.
Service charges, fees and commissions reached P4.3 billion, down from last year’s figure due to a one-off bancassurance milestone fee recorded in the first quarter of 2024. Without the extraordinary item, these fees rose 23 percent.
Operating expenses for the first half were up 25 percent, reflecting the bank’s investments in manpower and technology to support growth and transformation initiatives. Cost-to-income ratio stood at 59.6 percent. Pre-provision operating profit grew 20 percent to P12.8 billion.
The bank allocated P5.1 billion for credit loss provisions, higher than the P3.3 billion booked in the same period last year. Non-performing loan (NPL) ratio improved to 3.16 percent, with NPL reserve cover at 79 percent. Return on equity was 8.11 percent, while return on assets was 1.03 percent.
For the second quarter alone, net income hit P3.0 billion, up 8 percent from a year earlier and from the previous quarter. Revenues rose 23 percent year-on-year to P16.1 billion, boosted by a 14 percent increase in net interest income to P12.4 billion and a 65 percent jump in non-interest income to P3.7 billion.
Net interest margin in the April-to-June period improved to 4.67 percent, while service charges, fees and commissions rose 19 percent to P2.1 billion. Provisions for credit losses reached P2.7 billion.
Pre-provision operating profit for the quarter increased 10 percent from the prior quarter and 16 percent from last year, supported by revenue growth outpacing the 1 percent rise in expenses.
Total deposits climbed 32 percent year-on-year to P889 billion, with current and savings account (CASA) deposits up 18 percent and accounting for 49 percent of total deposits.
Net loans grew 16 percent to P667 billion, led by a 32 percent increase in retail and MSME lending. Wholesale loans rose 7 percent. Within retail and MSME, home loans advanced 17 percent, credit card receivables 43 percent, auto loans 54 percent, and MSME loans 46 percent.
Investment securities stood at P371 billion, up 38 percent year-on-year. Liquidity remained healthy with a liquidity coverage ratio of 194 percent and a net stable funding ratio of 140 percent as of end-June.
Capital ratios were also robust, with Common Equity Tier 1 at 12.3 percent and total capital adequacy ratio at 13.2 percent. Shareholders’ capital rose 7 percent to P147.7 billion, while total assets grew 22 percent to P1.15 trillion.
“We delivered another strong quarter with broad-based growth across retail, MSME, and wholesale,” Security Bank president and CEO Sanjiv Vohra said.
“Strategic investments in tech and talent are elevating customer experience, strengthening security, and positioning us for sustained, profitable growth.”
