Security Bank Corporation (PSE: SECB) total revenues in the first nine months of 2025 (9M-2025) grew 22% year-on-year to PHP48.8 billion. Net profit increased 7% year-on-year to PHP9.1 billion.
The Bank’s 9M-2025 net interest income climbed 15% over the previous year to PHP37.2 billion, with net interest margin improving to 4.70% in 9M-2025 from 4.56% in H1-2025. Total non-interest income likewise increased 52% year-on-year to PHP11.6 billion. Service charges, fees and commissions was PHP6.3 billion, lower than previous year due to the one-off bancassurance milestone fee in Q1-2024. Excluding the milestone fee, 9M-2025 service charges, fees and commissions increased 20% year-on-year, led by credit cards, payment services, and capital market fees.
9M-2025 operating expense was 20% higher, driven by investments in manpower and technology to accelerate transformation and drive growth. Cost-to-income ratio improved to 58.1%, compared to 59.6% in H1-2025 and 58.8% a year ago.
9M-2025 pre-provision operating profit was up 24% year-on-year to PHP20.4 billion. The Bank set aside PHP8.6 billion as provisions for credit losses in 9M-2025, an increase versus year-ago level of PHP5.1 billion. Gross non-performing loan ratio improved to 3.02%, down from 3.16% in the previous quarter and 3.08% a year ago. NPL reserve cover increased to 86%, up from 79% in the previous quarter and 79% a year-ago.
Return on shareholders’ equity stood at 8.22%. Return on assets was 1.06%.
Quarterly Results: For the period July 1 to September 30, 2025 (Q3-2025), the Bank posted net profit of PHP3.2 billion, up 6.7% from the previous year and up 5.7% from the prior quarter. Total revenues for the quarter increased to PHP17.2 billion, representing a 20% increase year-on-year and a 6.7% rise quarter-on-quarter.
Q3-2025 net interest income increased to PHP12.9 billion, up 20% year-on-year and up 3.6% quarter-on-quarter. Net interest margin in Q3-2025 was 4.83%, up 16 basis points quarter-on-quarter. Total non-interest income was PHP4.3 billion, up 19% year-on-year and up 17% quarter-on-quarter, driven by securities trading gains, FX gains, and share in net income from joint ventures and associate. Service charges, fees and commissions was PHP2.1 billion, up 15% year-on-year. In Q3-2025, the Bank set aside PHP3.55 billion as provisions for credit losses.
Q3-2025 pre-provision operating profit was PHP7.7 billion, 15% higher than the previous quarter and 32% higher than the same period last year, driven by revenue growth of 6.7% quarter-on-quarter compared to operating expense which increased by 0.8% quarter-on-quarter.
Balance sheet remains strong
Total deposits increased by 25% year-on-year to PHP901 billion, with CASA deposits sustaining 17% growth and accounting for 49% of total deposits.
The Bank expanded its branch network to 365 branches to-date, opening fifteen new branches in the first nine months of this year and four new branches in October and November.
Net loans increased to PHP672 billion, up 8% year-on-year. The growth was led by Retail loans which expanded 24% year-on-year. Within Retail, home loans grew 15%, credit cards 27%, and auto loans 42%. On a sequential basis, Retail loans were up 2.5% quarter-on-quarter. Retail loans account for 33% of total loans, up from 29% a year ago. Total investment securities stood at PHP354 billion, up 26% year-on-year.
The Bank continues to maintain strong liquidity and capitalization. As of September 30, 2025, Liquidity Coverage Ratio (LCR) stood at 189% while the Net Stable Funding Ratio (NSFR) was at 143%, both well above regulatory minimums.
Capital ratios remain healthy. Common Equity Tier 1 Ratio increased to 12.7%, up from 12.3% in the previous quarter. Total Capital Adequacy Ratio (CAR) likewise increased to 13.6%, up from 13.2% in the previous quarter. Shareholders’ capital increased to PHP153.2 billion, up 7% year-on-year and up 4% quarter-on-quarter, while total assets increased to PHP1.14 trillion, up 11% year-on-year.
On October 28, 2025, the Bank’s Board of Directors approved the second semestral regular cash dividend of PHP1.50 per common share with payment date on November 26, 2025. This will bring the total cash dividends for the year to PHP3.00 per common share. The Bank had earlier paid regular cash dividend for the first semester of PHP1.50 per common share on April 28, 2025.
“We delivered another strong quarter, underscoring our continued focus on customer-centric growth, digital transformation, and operational efficiency. Revenues continued to grow faster than expenses, with revenues rising 6.7% quarter-on-quarter against just a 0.8% growth in expenses. This drove stronger efficiency and profitability, as reflected in our improved cost-to-income and ROE ratios. Backed by a healthy balance sheet, we remain focused on sustainable growth and delivering better experiences for our customers.” — Security Bank President & CEO, Sanjiv Vohra.