Security Bank Corporation posted P6.1 billion in net income in the first half of 2026, up 4% from a year earlier, as stronger revenues, improving efficiency, and disciplined credit management helped sustain the lender’s growth momentum.
The bank delivered a stronger second quarter, with net income climbing 25% quarter-on-quarter and 11% year-on-year to P3.4 billion, signaling an acceleration in earnings as Security Bank marks its 75th anniversary.
Pre-provision operating profit rose 21% year-on-year to P15.4 billion, while total revenues increased 11% to P34.9 billion, reflecting continued expansion in the bank’s core businesses.
Net interest income reached P32.4 billion, with net interest margin at 5.78%. Service charges, fees, and commissions totaled P4.2 billion.
Security Bank also improved operating efficiency, with expenses rising by only 3% year-on-year—well below revenue growth. This brought its cost-to-income ratio down to 55.7% from 59.6% in the first half of 2025.
Asset quality improves
The bank maintained what it described as a prudent and proactive approach to credit, setting aside P7.6 billion in provisions for credit losses during the first six months.
Despite the higher provisions, asset quality indicators improved. Security Bank’s gross non-performing loan ratio declined to 3.04%, from 3.16% a year earlier and 3.08% in the previous quarter.
Its NPL reserve cover strengthened to 85%, compared with 79% a year ago and 81% in the first quarter.
Second-quarter figures showed improving momentum, with revenues reaching P17.9 billion, up 5% from the previous quarter and 11% year-on-year.
Pre-provision operating profit for the quarter rose to P7.9 billion, 6% higher quarter-on-quarter and 19% above the same period last year. Credit-loss provisions eased to P3.7 billion from P3.9 billion in the first quarter.
Strong liquidity, capital buffers
Security Bank ended June with P891 billion in total deposits, while current and savings account deposits grew 8% year-on-year.
CASA deposits accounted for 52% of total deposits, improving from 49% a year earlier and 51% in the previous quarter.
Net loans stood at P675 billion, up 1% year-on-year, as the bank continued to rebalance its lending portfolio toward higher-quality segments. Investment securities totaled P362 billion.
The lender also maintained capital and liquidity levels well above regulatory requirements. Its Liquidity Coverage Ratio stood at 206%, while its Net Stable Funding Ratio was 145% as of end-June.
Common Equity Tier 1 Ratio improved to 12.6%, from 12.2% in the previous quarter and 12.3% a year ago. Total Capital Adequacy Ratio likewise rose to 13.5%, compared with 13.1% in the first quarter and 13.2% a year earlier.
Shareholders’ capital increased 5% year-on-year to P155.7 billion, while total assets reached P1.19 trillion, up 3%.
“As Security Bank marks its 75th year, we are building momentum with discipline,” Security Bank President and CEO Victor Lee said.
“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,” he added.