Security Bank Corporation opened 2026 on a stronger footing, posting double-digit revenue growth and improved operating efficiency as core earnings continued to expand despite higher provisioning and a cautious credit environment.

The bank’s pre-provision operating profit rose 24 percent year-on-year to P7.5 billion in the first quarter, driven by disciplined cost control and steady income growth. Total revenues reached P17 billion, up 10 percent from a year earlier, while net income rose to P2.7 billion, increasing 6 percent quarter-on-quarter.

Net interest income climbed to P15.2 billion, supported by expanding lending activity and a stronger deposit base. Non-interest income reached P1.9 billion, helping sustain overall revenue momentum.

Operating expenses remained contained, rising just 2 percent year-on-year and falling 13 percent quarter-on-quarter. This pushed the cost-to-income ratio down to 56 percent from 61 percent a year earlier, reflecting improved efficiency across operations.

Security Bank set aside P3.9 billion in provisions for credit and impairment losses, higher than last year, as part of what it described as prudent risk management. Asset quality remained manageable, with a gross non-performing loan ratio of 3.08 percent and NPL reserve coverage at 81 percent.

Balance sheet strength also improved, with total deposits rising 12 percent year-on-year to P938 billion. Current and savings account (CASA) deposits increased 13 percent, now accounting for 51 percent of total deposits.

Net loans reached P679.4 billion, up 5 percent year-on-year, as the bank continued to shift toward higher-quality lending segments. Total investment securities stood at P370.4 billion.

Liquidity buffers remained strong, with a Liquidity Coverage Ratio of 198 percent and Net Stable Funding Ratio of 145 percent as of end-March 2026.

Capital levels also stayed solid, with Common Equity Tier 1 ratio at 12.2 percent and total capital adequacy ratio at 13.1 percent. Shareholders’ equity rose 7 percent year-on-year to P153.5 billion, while total assets expanded 10 percent to P1.2 trillion.

The bank continued expanding its physical footprint, increasing its branch network to 390 locations after opening nine new branches in the first quarter and additional branches in April and May.

Security Bank also retained its investment-grade standing after Moody’s Ratings affirmed its Baa2 rating and revised the outlook to stable.

“We had a solid start to the year, driven by stronger core earnings and disciplined cost management. We remain focused on sustaining operational discipline, growing responsibly, and making banking simpler, faster, and more responsive for our customers,” said Victor Lee Meng Teck, President and CEO of Security Bank.