Security Bank profit up 7% in 3 months

MANILA, Philippines — Security Bank Corp. reported a seven-percent rise in net income to P2.8 billion in the first quarter, driven by robust growth in both interest and non-interest income.

In a statement, the bank said that total revenues rose by 23 percent to P15.4 billion, buoyed by an 11-percent increase in net interest income to P11.9 billion.

Security Bank’s net interest margin stood at 4.51 percent in the first quarter, two basis points higher than the previous quarter. Non-interest income more than doubled to P3.5 billion, supported by gains from securities and higher fee-based revenues.

“Our first quarter was marked by the growth on our deposits and loans. Profitable growth is our focus for 2025,” Security Bank president and CEO Sanjiv Vohra said.

“We will continue to support our clients, deploy innovative technology to deliver differentiated client experiences and enhance efficiencies to generate improved returns,” Vohra said.

Pre-provision operating profit climbed by 24 percent to P6.1 billion, even as operating expenses rose by 23 percent due to continued investments in manpower and technology aimed at accelerating digital transformation.

The bank’s cost-to-income ratio stood at 60.6 percent, slightly lower quarter-on-quarter as expenses eased by two percent.

The lender allocated P2.4 billion in provisions for credit and impairment losses during the quarter, up from P1.5 billion a year ago, reflecting prudent risk management.

Its gross non-performing loan ratio improved to 3.1 percent from 3.41 percent, while NPL reserve cover was at 79 percent.

Security Bank’s balance sheet remained solid, with total assets increasing by 25 percent year-on-year to P1.1 trillion. Deposits grew by 32 percent to P841 billion, with current and savings account deposits comprising 50 percent of the total.

Net loans expanded by 18 percent to P646 billion, led by a 37 percent surge in retail and MSME lending. Wholesale loans rose by 11 percent over the same period.

Security Bank’s capital and liquidity positions stayed healthy, with a common equity tier 1 ratio of 13.2 percent and a capital adequacy ratio of 14.1 percent in the first quarter, above minimum requirements.