Security Bank Corp.’s first half net profits grew by eight percent year-on-year to P5.9 billion, driven by revenues and the growth in both retail and wholesale loans.
Revenues increased by 23 percent year-on-year to P31.6 billion, the bank disclosed to the Philippine Stock Exchange.
This was due to improved net interest income in the first six months which rose 12 percent to P24.3 billion while non-interest income surged by 81 percent to P7.2 billion.
Net interest margin stood at 4.56 percent during the period. The first half profits, meanwhile, resulted to a 1.03 percent return on assets and 8.11 percent return on equity.
In its disclosure, the bank said operating expenses in the first six months were 25 percent higher, driven by investments in manpower and technology to boost transformation and growth. Cost-to-income ratio was at 59.6 percent.
Pre-provision operating profit in the first half was up 20 percent year-on-year to P12.8 billion while provisions for credit losses were set at P5.1 billion.
Gross non-performing loan (NPL) ratio was at 3.16 percent during the period, while NPL reserve cover was 79 percent.
For the second quarter of 2025, Security Bank reported net profits of P3 billion, up eight percent year-on-year.
Total revenues increased by 23 percent year-on-year to P16.1 billion in the second quarter.
In April to June, the bank’s net interest income rose 14 percent year-on-year to P12.4 billion while non-interest income grew by 65 percent year-on-year to P3.7 billion.
Security Bank President and CEO Sanjiv Vohra said its strong revenues and contained expenses highlighted the bank’s “stronger efficiency and profitability.”
“We delivered another strong quarter with broad-based growth across retail, MSME (micro, small and medium enterprises),” he said, adding that strategic investments in technology and talent “are elevating customer experience, strengthening security, and positioning us for sustained, profitable growth.”
Total deposits increased 32 percent year-on-year to P889 billion. Its net loans also rose 16 percent year-on-year to P667 billion.
“Retail and MSME loans increased 32 percent year-on-year while wholesale loans increased 7 percent year-on-year,” the bank said.
It added that “the growth in retail and MSME loans was driven by home loans which grew 17 percent, credit cards which rose 43 percent, auto loans which grew 54 percent, and MSME loans which increased 46 percent.”
Security Bank’s capital ratios remained stable with a common equity tier 1 ratio at 12.3 percent and total capital adequacy ratio at 13.2 percent.
Total capital increased seven percent year-on-year to P147.7 billion while total assets rose 22 percent to P1.15 trillion.
