Security Bank Corporation (PSE: SECB) reported PHP6.1 billion in net income for the first half of 2026 (H1-2026), up 4% year-on-year (YoY), as stronger revenues, better operating efficiency, and prudent credit management supported the Bank’s performance. Second-quarter momentum strengthened, with Q2-2026 net income rising 25% quarter-on-quarter (QoQ) and 11% year-on-year to PHP3.4 billion.
Pre-provision operating profit rose 21% year-on-year to PHP15.4 billion, reflecting the Bank’s core earnings expansion and continued focus on disciplined, quality growth. Total revenues increased 11% to PHP34.9 billion.
Net interest income grew to PHP32.4 billion, with net interest margin at 5.78%. Service charges, fees, and commissions reached PHP4.2 billion. Operating expenses increased 3% year-on-year, well below revenue growth, bringing the cost-to-income ratio down to 55.7% from 59.6% in H1-2025.
The Bank sustained a prudent and proactive approach to credit. Provisions for credit losses were PHP7.6 billion for the first half. Asset quality indicators improved, with the gross non-performing loan ratio declining to 3.04% from 3.16% a year ago and 3.08% in the previous quarter. NPL reserve cover also improved to 85% from 79% a year ago and 81% in the previous quarter.
Q2 momentum strengthened
In the second quarter, total revenues rose to PHP17.9 billion, up 5% quarter-on-quarter and 11% year-on-year. Pre-provision operating profit reached PHP7.9 billion, up 6% from the previous quarter and 19% from the same period last year. Provisions for credit losses were PHP3.7 billion, lower than the PHP3.9 billion recorded in the first quarter.
Strong liquidity and capital position
Total deposits stood at PHP891 billion, with CASA deposits up 8% year-on-year. CASA accounted for 52% of total deposits, higher than 49% a year ago and 51% in the previous quarter. Net loans stood at PHP675 billion, up 1% year-on-year, as the Bank continued to rebalance its portfolio toward higher-quality segments. Total investment securities were PHP362 billion.
Security Bank continues to maintain strong liquidity and capital ratios. As of June 30, 2026, Liquidity Coverage Ratio was 206% and Net Stable Funding Ratio was 145%, both well above regulatory minimums. Common Equity Tier 1 Ratio improved to 12.6% from 12.2% in the previous quarter and 12.3% a year ago. Total Capital Adequacy Ratio improved to 13.5%, compared with 13.1% in the previous quarter and 13.2% a year ago.
Shareholders’ capital increased to PHP155.7 billion, up 5% year-on-year and 1% quarter-on-quarter. Total assets stood at PHP1.19 trillion, up 3% year-on-year.
“As Security Bank marks its 75th year, we are building momentum with discipline,” said Victor Lee, President and CEO of Security Bank. “We grew revenues faster than expenses, improved efficiency, strengthened reserve cover, and maintained strong capital and liquidity. Our focus is to keep growing responsibly while making banking simpler, faster, and more responsive for the customers and businesses we serve.”
