Security Bank Corporation (PSE: SECB) total revenues grew 23% year-on-year to PHP15.4 billion. Net profit of PHP2.8 billion in Q1-2025 rose 7% year-on-year.
Net interest income increased 11% over the year to PHP11.9 billion. Net interest margin for Q1-2025 was 4.51%, up 2 basis points quarter-on-quarter. Total non-interest income was PHP3.5 billion, up 101%. Service charges, fees and commissions was PHP2.2 billion in Q1-2025, lower than previous year due to the one-off bancassurance milestone fee in Q1-2024. Excluding the milestone fee, service charges, fees and commissions increased 27% year-on-year.
Operating expense was 23% higher, driven by investments in manpower and technology to accelerate transformation. Cost-to-income ratio was 60.6%. Quarter-on-quarter, operating expense decreased 2%.
Pre-provision operating profit was up 24% year-on-year to PHP6.1 billion. The Bank set aside PHP2.4 billion in provisions for credit and impairment losses in Q1-2025, an increase versus year-ago level of PHP1.5 billion. Gross non-performing loan ratio was 3.10%, down from 3.41% a year ago. NPL reserve cover was 79%.
Return on shareholders’ equity increased to 7.92% from 7.71% a year ago.
Balance sheet remains strong
Total deposits increased to PHP841 billion, up 32% year-on-year and up 5% quarter-on-quarter. CASA deposits increased by 19% year-on-year and by 1% quarter-on-quarter. CASA as percent of total deposits was at 50%.
Net loans increased to PHP646 billion, up 18% year-on-year and down 5% quarter-on-quarter. Retail and MSME loans increased 37% year-on-year while Wholesale loans increased 11% year-on-year. On a sequential quarter-on-quarter basis, retail and MSME loans combined increased 6% while wholesale loans decreased 10%. Retail and MSME loans as percent of total loans was at 36%, up from 31% a year ago. Total investment securities increased to PHP336 billion, up 38% year-on-year and down 1% quarter-on-quarter.
The Bank maintains healthy liquidity, with Liquidity Coverage Ratio (LCR) at 179% and Net Stable Funding Ratio (NSFR) at 136% as of March 31, 2025.
Security Bank’s capital ratios remain healthy. Common Equity Tier 1 Ratio increased to 13.2%, up from 12.9% a quarter ago. Total Capital Adequacy Ratio (CAR) likewise increased to 14.1%, up from 13.8% a quarter ago. Shareholders’ capital increased to PHP144 billion, up 5% year-on-year and up 2% quarter-on-quarter. Total assets increased to PHP1.1 trillion, up 25% year-on-year.
On March 25, 2025, Security Bank approved cash dividend declaration of PHP1.50 per common share representing regular semestral cash dividend, with payment date on April 28, 2025.
“Our first quarter was marked by the growth on our deposit and loans. Profitable growth is our focus for 2025. We will continue to support our clients, deploy innovative technology to deliver differentiated client experiences, and enhance efficiencies to generate improved returns.” — Security Bank President & CEO, Sanjiv Vohra.