‘Disciplined growth’: Security Bank profit up 3% to P11.6B
Security Bank Corp. grew its net income by 3 percent in 2025 to P11.6 billion, as higher credit provisioning tempered gains from strong revenue and operating performance.
In a statement on Monday, the bank led by tycoon Frederick Dy said total revenues climbed 22 percent to P66.9 billion, driven by sustained strength across its core banking businesses and diversified income streams.
Security Bank increased provisions for credit and impairment losses to P12.8 billion, nearly double the P6.6 billion recorded a year earlier, as part of its disciplined risk management strategy.
Asset quality remained stable, with the gross nonperforming loan ratio settling at 2.89 percent.
The lender’s core income streams remained strong. Net interest income rose 15 percent to P50.5 billion, supported by healthy asset yields and disciplined funding.
Net interest margin stood at 4.66 percent, seen to reflect margin resilience despite market volatility.
Noninterest income surged 47 percent to P16.5 billion, fueled by gains from securities trading, foreign exchange transactions, as well as equity earnings from joint ventures and associates.
Service charges, fees and commissions reached P8.9 billion. Excluding a one-off bancassurance milestone fee recognized in early 2024, fee income increased 18 percent, led by credit cards, bancassurance, payment services and capital markets activities.
Higher costs
Operating expenses increased 19 percent, reflecting continued investments in manpower, technology and service delivery.
Still, cost efficiency improved slightly, with the cost-to-income ratio easing to 58.75 percent from 60.23 percent previously.
Total deposits expanded 16 percent to P930.5 billion, while net loans reached P697 billion, supported by growth in retail lending.
Retail loans jumped 14 percent, with auto loans rising 24 percent, credit cards 16 percent and home loans 9 percent.
Total assets increased 6 percent to P1.2 trillion, while shareholders’ capital grew 9 percent to P154.2 billion. Liquidity and capital ratios remained well above regulatory minimums, ensuring financial strength.
“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.
