Security Bank Corporation (PSE: SECB) total revenues in H1-2025 grew 23% year-on-year to PHP31.6 billion. Net profit increased 8% year-on-year to PHP5.9 billion.
H1-2025 net interest income increased 12% over the year to PHP24.3 billion. Net interest margin for H1-2025 was 4.56%. H1-2025 total non-interest income was PHP7.2 billion, up 81%. Service charges, fees and commissions was PHP4.3 billion in H1-2025, lower than previous year due to the one-off bancassurance milestone fee in Q1-2024. Excluding the milestone fee, H1-2025 service charges, fees and commissions increased 23% year-on-year.
H1-2025 operating expense was 25% higher, driven by investments in manpower and technology to accelerate transformation and drive growth. Cost-to-income ratio was 59.6%.
H1-2025 pre-provision operating profit was up 20% year-on-year to PHP12.8 billion. The Bank set aside PHP5.1 billion as provisions for credit losses in H1-2025, an increase versus year-ago level of PHP3.3 billion. Gross non-performing loan ratio was 3.16% and NPL reserve cover was 79%.
Return on shareholders’ equity was 8.11%. Return on assets was 1.03%.
Quarterly Results: For the period April 1 to June 30, 2025 (Q2-2025), net profit was PHP3.0 billion, up 8% year-on-year and up 8% quarter-on-quarter. Q2-2025 total revenues increased to PHP16.1 billion, up 23% year-on-year and up 5% quarter-on-quarter.
Q2-2025 net interest income increased to PHP12.4 billion, up 14% year-on-year and up 5% quarter-on-quarter. Net interest margin in Q2-2025 was 4.67%, up 16 basis points quarter-on-quarter. Total non-interest income was PHP3.7 billion, up 65% year-on-year and up 5% quarter-on-quarter. Service charges, fees and commissions was PHP2.1 billion, up 19% year-on-year. In Q2-2025, the Bank set aside PHP2.7 billion as provisions for credit losses.
Q2-2025 pre-provision operating profit was PHP6.7 billion, 10% higher than quarter-ago level and 16% higher than year-ago level due to higher revenue growth of 5% quarter-on-quarter compared to operating expense which increased by 1% quarter-on-quarter.
Balance sheet remains strong
Total deposits increased to PHP889 billion, up 32% year-on-year. CASA deposits increased 18% year-on-year. CASA as percent of total deposits was at 49%.
Net loans increased to PHP667 billion, up 16% year-on-year and up 3% quarter-on-quarter. 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%. On a sequential quarter-on-quarter basis, Retail and MSME loans combined increased 5% while Wholesale loans increased 2%. Retail and MSME loans as percent of total loans was at 36%, up from 32% a year ago. Total investment securities increased to PHP371 billion, up 38% year-on-year and up 11% quarter-on-quarter.
The Bank maintains healthy liquidity, with Liquidity Coverage Ratio (LCR) at 194% and Net Stable Funding Ratio (NSFR) at 140% as of June 30, 2025.
Security Bank’s capital ratios remain healthy, with Common Equity Tier 1 Ratio at 12.3% and Total Capital Adequacy Ratio (CAR) at 13.2%. Shareholders’ capital increased to PHP147.7 billion, up 7% year-on-year and up 3% quarter-on-quarter. Total assets increased to PHP1.15 trillion, up 22% year-on-year and up 4% quarter-on-quarter.
“We delivered another strong quarter with broad-based growth across retail, MSME, 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 & CEO, Sanjiv Vohra.