Security Bank Corporation (PSE: SECB) reported solid financial results in the first nine months of 2025, with total revenues climbing 22% year-on-year to PHP48.8 billion. Net profit rose 7% to PHP9.1 billion, supported by higher margins and stronger fee-based and trading income. Net interest income increased 15% to PHP37.2 billion, while net interest margin improved to 4.70%, up from 4.56% in the first half of the year.
Non-interest income surged 52% to PHP11.6 billion, driven by gains from securities trading, foreign exchange, and capital market-related fees. Service charges, fees, and commissions amounted to PHP6.3 billion, lower due to a one-off bancassurance milestone fee recorded in early 2024. Excluding that fee, service revenues grew 20%.
Operating expenses rose 20% amid continued investments in manpower and technology, yet the cost-to-income ratio improved to 58.1% from 59.6% in the previous quarter. Pre-provision operating profit reached PHP20.4 billion, up 24% year-on-year.
Quarterly Performance Bolstered by Trading Gains
From July to September 2025, the bank posted quarterly net income of PHP3.2 billion, up 6.7% year-on-year and 5.7% quarter-on-quarter. Revenues for the quarter rose 20% to PHP17.2 billion. Net interest income improved 20% to PHP12.9 billion, while non-interest income grew 19% to PHP4.3 billion, fueled by trading and foreign exchange gains and contributions from joint ventures and associates.
The bank booked PHP3.55 billion in provisions for credit losses during the quarter. Pre-provision operating profit reached PHP7.7 billion, 32% higher than the same period in 2024.
Deposits, Lending, and Capital Position Strengthen
Total deposits increased 25% year-on-year to PHP901 billion, with CASA deposits making up 49%. The loan portfolio expanded 8% to PHP672 billion, driven by a 24% increase in retail loans, including strong growth in auto (42%), credit card (27%), and home loans (15%). Liquidity remained robust, with a 189% LCR and 143% NSFR, both above regulatory minimums. Capital ratios also improved, with CET1 at 12.7% and CAR at 13.6%.
Security Bank’s board approved a PHP1.50-per-share second-semester dividend, bringing total dividends for 2025 to PHP3.00 per share.
