Security Bank Corporation (PSE: SECB) reported total revenues of PHP66.9 billion in 2025, up 22% year‑on‑year, supported by sustained performance across its core banking businesses and diversified income streams. Net income reached PHP11.6 billion, up 3% year‑on‑year, as the Bank balanced revenue growth with higher credit provisioning to reinforce balance-sheet resilience amid a challenging macroeconomic environment. Pre‑provision operating profit (PPOP) rose 26% year‑on‑year to PHP27.6 billion, underscoring the Bank’s core earnings capacity.

“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. This reflects our BetterBanking approach, focused on long‑term value and serving our customers and all stakeholders responsibly,” said Victor Lee Meng Teck, President and CEO of Security Bank.

Broad‑based revenue growth

Net interest income increased 15% year‑on‑year to PHP50.5 billion, supported by healthy asset yields and disciplined funding. Full‑year net interest margin stood at 4.66%, reflecting sustained margin resilience despite market volatility.

Total non‑interest income rose 47% to PHP16.5 billion, driven by higher securities trading gains, foreign exchange income, and the Bank’s share in net income from joint ventures and associates.

Service charges, fees, and commissions totaled PHP8.9 billion, slightly lower than the previous year due to the one‑off bancassurance milestone fee recognized in the first quarter of 2024. Excluding this milestone fee, fee income increased 18% year‑on‑year, led by credit cards, bancassurance, payment services, and capital markets activities.

Disciplined execution strengthens asset quality

Operating expenses increased 19% year‑on‑year, reflecting execution across people, technology, and service capabilities that support scale, efficiency, and customer experience. The cost‑to‑income ratio improved marginally to 58.75% from 60.23%.

In line with its disciplined risk management approach, the Bank increased its provisions for credit and impairment losses and set aside PHP12.8 billion compared with PHP6.6 billion a year earlier. Asset quality remains stable during the year, with the gross non‑performing loan ratio declining to 2.89%, from 3.02% a quarter ago and 2.85% a year ago. NPL reserve coverage stood at 86%, similar from a quarter ago and up from 81% a year earlier.

Return on shareholders’ equity stood at 7.87%.

Quarterly performance

For the fourth quarter of 2025, net income was PHP2.6 billion, lower year‑on‑year and quarter‑on‑quarter, primarily reflecting higher credit provisioning from the previous quarter. Total revenues for the quarter rose 22% year‑on‑year to PHP18.1 billion and increased 5% quarter‑on‑quarter.

Net interest income in Q4‑2025 increased to PHP13.3 billion, up 17% year‑on‑year and 3% quarter‑on‑quarter. Net interest margin improved 40 basis points from a year earlier and improved quarter-on-quarter to 4.89%.

Service charges, fees, and commissions increased to PHP2.5 billion, up 12% year‑on‑year and 21% quarter‑on‑quarter. Provisions for credit and impairment losses amounted to PHP4.1 billion in the quarter, up by 17% quarter-on-quarter. Pre‑provision operating profit was PHP7.2 billion, up 34% year‑on‑year, though lower than the previous quarter.

Balance sheet remains resilient

Total deposits increased 16% year‑on‑year to PHP930.5 billion, with CASA deposits growing 9% and accounting for 49% of total deposits.

Net loans increased to PHP697 billion, up 3% year‑on‑year and 4% quarter‑on‑quarter, driven by continued growth in retail lending. Retail loans expanded 14% year‑on‑year, with auto loans up 24%, credit cards 16%, and home loans 9%. Retail loans now account for 32% of total loans, up from 29% a year ago. Total investment securities stood at PHP354 billion, up 5% year‑on‑year.

Liquidity and capital positions remained strong. As of December 31, 2025, the Liquidity Coverage Ratio (LCR) stood at 200% and the Net Stable Funding Ratio (NSFR) at 146%, both well above regulatory minimums. Capital ratios remained resilient, with a Common Equity Tier 1 ratio of 12.33% and Total Capital Adequacy Ratio of 13.21%. Shareholders’ capital increased 9% year‑on‑year to PHP154.2 billion, while total assets rose 6% year‑on‑year to PHP1.2 trillion.

The Bank expanded its branch network to 384 branches, opening 31 new branches in 2025 and seven additional branches in January and February 2026.