Security Bank Corporation delivered a strong earnings performance in 2025, posting a 26% year-on-year increase in pre-provision operating profit to PHP27.6 billion, underscoring the bank’s solid core earnings momentum even as it strengthened buffers against a challenging macroeconomic backdrop.
Total revenues climbed 22% to P66.9 billion, driven by sustained growth across core banking businesses and diversified income streams. Net income reached P11.6 billion, up 3% from the previous year, as higher credit provisions were deliberately set aside to reinforce balance sheet resilience.
“We are seeing the benefits of the strong foundations we have built. Following a period of intentional investment and operating in a more challenging macro environment, we are refocusing on disciplined growth, delivering strong revenue momentum, improving asset quality, and maintaining a resilient balance sheet,” said Victor Lee Meng Teck, President and CEO of Security Bank. He said the results reflect the bank’s BetterBanking approach, anchored on long-term value creation and responsible service to customers and stakeholders.
Net interest income rose 15% year on year to P50.5 billion, supported by healthy asset yields and disciplined funding management. The bank’s full-year net interest margin stood at 4.66%, reflecting margin resilience despite market volatility.
Non-interest income surged 47% to P16.5 billion, fueled by stronger securities trading gains, foreign exchange income, and higher contributions from joint ventures and associates.
Service charges, fees, and commissions amounted to PHP8.9 billion, slightly lower than the prior year due to a one-off bancassurance milestone fee booked in the first quarter of 2024. Excluding this item, fee income grew 18% year on year, led by credit cards, bancassurance, payment services, and capital markets activities.
Operating expenses increased 19% as the bank continued investing in people, technology, and service capabilities to support scale and enhance customer experience. Despite these investments, the cost-to-income ratio improved marginally to 58.75% from 60.23% a year earlier.
In line with its disciplined risk management strategy, Security Bank doubled its provisions for credit and impairment losses to P12.8 billion from PHP6.6 billion in 2024. Asset quality remained stable, with the gross non-performing loan ratio easing to 2.89% from 3.02% a quarter earlier. NPL reserve coverage stood at 86%, up from 81% a year ago. Return on shareholders’ equity for the year was 7.87%.
In the fourth quarter of 2025, net income came in at P2.6 billion, lower both year on year and quarter on quarter, primarily reflecting higher provisioning. Quarterly revenues rose 22% year on year to P18.1 billion and were up 5% from the previous quarter. Net interest income increased to P13.3 billion, up 17% year on year, while net interest margin improved to 4.89%.
Service charges, fees, and commissions reached P2.5 billion, posting double-digit growth both year on year and quarter on quarter. Pre-provision operating profit for the quarter rose 34% year on year to P7.2 billion.
The bank’s balance sheet remained robust. Total deposits grew 16% to PHP930.5 billion, with CASA deposits accounting for 49% of the total. Net loans reached PHP697 billion, up 3% year on year, driven largely by retail lending, which expanded 14%. Auto loans surged 24%, credit cards rose 16%, and home loans increased 9%, lifting retail loans’ share of total loans to 32%. Investment securities stood at PHP354 billion, up 5%.
Liquidity and capital positions stayed well above regulatory requirements. As of end-December 2025, the liquidity coverage ratio stood at 200% and the net stable funding ratio at 146%. The common equity tier 1 ratio was 12.33%, while total capital adequacy ratio reached 13.21%. Shareholders’ capital increased 9% to P154.2 billion, and total assets grew 6% to P1.2 trillion.
Security Bank also continued expanding its physical footprint, ending 2025 with 384 branches after opening 31 new branches during the year, followed by seven additional branches in January and February 2026.