Security Bank Corporation (PSE: SECB) delivered strong core operating performance in the first quarter of 2026, with pre-provision operating profit rising 24% year-on-year to PHP7.5 billion, supported by disciplined cost management. Total revenues reached PHP17.0 billion, up 10% year-on-year. Net income was PHP2.7 billion, up 6% quarter-on-quarter, despite higher provisions amid evolving operating conditions.

Net interest income grew to PHP15.2 billion and total non-interest income was PHP1.9 billion. Operating expenses were well-managed, increasing 2% year-on-year and decreasing 13% quarter-on-quarter, resulting in an improved cost-to-income ratio of 56% from 61% a year ago.

The Bank set aside PHP3.9 billion in provisions for credit and impairment losses, higher year-on-year as part of its prudent risk management approach. Asset quality metrics remain manageable, with gross non-performing loan ratio at 3.08% and NPL reserve cover at 81%.

Balance sheet remains strong

Total deposits increased 12% year-on-year to PHP938.0 billion, with CASA deposits growing 13% year-on-year and 4% quarter-on-quarter, accounting for 51% of total deposits.

Net loans stood at PHP679.4 billion, up 5% year-on-year as the Bank continued to rebalance its portfolio toward higher-quality segments. Total investment securities stood at PHP370.4 billion.

The Bank maintains healthy liquidity, with Liquidity Coverage Ratio (LCR) at 198% and Net Stable Funding Ratio (NSFR) at 145% as of March 31, 2026.

Security Bank’s capital ratios remain healthy, with Common Equity Tier 1 Ratio at 12.2% and Total Capital Adequacy Ratio (CAR) at 13.1%. Shareholders’ capital increased to PHP153.5 billion, up 7% year-on-year. Total assets increased to PHP1.2 trillion, up 10% year-on-year.

The Bank expanded its branch network to 390 branches to-date, opening 9 new branches in first quarter 2026 and four additional branches in April and May 2026.

Recently, Moody’s Ratings affirmed Security Bank’s investment-grade credit rating of Baa2 and revised the rating outlook to stable.

On April 8, 2026, the Bank declared a regular cash dividend of PHP1.50 per common share representing regular semestral cash dividend, with payment date on May 8, 2026.

“We had a solid start to the year, driven by stronger core earnings and disciplined cost management. We remain focused on sustaining operational discipline, growing responsibly, and making banking simpler, faster, and more responsive for our customers,” said Victor Lee Meng Teck, President and CEO of Security Bank.