SECURITY Bank Corp.’s net income rose by 7.85% year on year in the second quarter on the back of double-digit revenue growth.
The bank’s net profit climbed to P3.04 billion in the April-to-June period from P2.82 billion a year ago, it said in a disclosure to the stock exchange on Wednesday.
This brought its first-half earnings to P5.86 billion, up by 7.59% year on year from P5.44 billion, which translated to a return on average equity and a return on average assets of 8.11% and 1.03%, respectively.
“We delivered another strong quarter with broad-based growth across retail, micro, small, and medium enterprises (MSMEs), and wholesale. Revenues rose 5% quarter-on-quarter against just a 1% rise in expenses, underscoring the stronger efficiency and profitability we are building. Strategic investments in tech and talent are elevating customer experience, strengthening security, and positioning us for sustained, profitable growth.” Security Bank President and Chief Executive Officer Sanjiv Vohra said.
The bank’s revenues in the second quarter rose by 23% year on year to P16.1 billion.
Net interest income increased by 13.76% to P12.44 billion from P10.93 billion in the same period last year. Interest income climbed by 28.46% to P19.22 billion, while interest expenses surged by 68.41% to P6.78 billion.
Net interest margin went down to 4.56% as of end-June from 5.2% a year ago.
Meanwhile, non-interest income jumped by 65% year on year to P3.7 billion in the second quarter.
This was mainly driven by the 19% increase in service charges, fees and commissions to P2.1 billion. Security Bank also recorded foreign exchange and trading gains last quarter versus the losses seen in the same period last year.
Meanwhile, operating expenses rose by 32.38% to P12.26 billion in the second quarter from P9.19 billion a year ago.
Its cost-to-income ratio was at 59.59% as of June, up from 58.44% a year ago.
Security Bank’s net loans grew by 16% year on year to P667.36 billion as of June.
“Retail and MSME loans increased 32% year on year while wholesale loans increased 7% year on year. The growth in retail and MSME loans was driven by home loans which grew 17%, credit cards which rose 43%, auto loans which grew 54%, and MSME loans which increased 46%… Retail and MSME loans as percent of total loans was at 36%, up from 32% a year ago,” the bank said.
Its net nonperforming loan (NPL) ratio went up to 1.63% at end-June from 1.28% as of end-2024, while NPL cover went down to 79.15% from 80.76%.
On the funding side, total deposits increased by 32% year on year at P889.44 billion as of June. Nearly half or 49% of total deposits were low-cost current and savings account or CASA deposits, it said.
Security Bank’s assets stood at P1.15 trillion as of June, while total equity was at P147.73 billion.
Its capital adequacy ratio was at 13.24%, while common equity Tier 1 ratio stood at 12.35%. Both were down from 13.84% and 12.94%, respectively, at end-2024.
“The bank maintains healthy liquidity, with liquidity coverage ratio at 194% and net stable funding ratio at 140% as of June 30, 2025.”
To date, the bank has a total of 358 branches and 637 automated teller machines, cash recycler machines, and cash acceptance machines.
Security Bank shares dropped by P1.10 or 1.52% to close at P71.50 apiece on Wednesday. — Aaron Michael C. Sy
