Security Bank concluded 2025 with a net income of P11.63 billion, a modest 3% increase over the previous year’s P11.24 billion. This performance reflects a careful balancing act – pursuing revenue growth while proactively strengthening financial safeguards against a complex economic landscape.
The bank experienced robust revenue expansion, surging 22% year-on-year to reach P66.9 billion. This growth was fueled by both its core banking operations and a diverse range of income sources, demonstrating a resilient business model.
Net interest income, a key indicator of banking profitability, climbed 15.4% to P50.457 billion. This rise was driven by strong asset yields and a disciplined approach to managing funding costs, showcasing effective financial strategy.
Interest income itself saw a significant jump of 23.44% to P77.528 billion, though this was accompanied by a 41.9% increase in interest expense to P27.071 billion. Despite market fluctuations, the bank maintained a stable net interest margin of 4.66%.
Beyond traditional lending, non-interest income experienced a remarkable surge of 46.9% to P16.5 billion. Gains in foreign exchange, trading, and securities contributed significantly to this impressive growth.
While service charges and fees saw a slight dip compared to the previous year – due to a unique one-time event in 2024 – underlying fee income actually increased by 18%, propelled by strong performance in credit cards, bancassurance, payment services, and capital markets.
Operating expenses rose by 18.9% to P39.325 billion, but the bank successfully improved its cost-to-income ratio to 58.75%, demonstrating enhanced operational efficiency.
Recognizing the importance of prudent risk management, Security Bank increased its provisions for potential credit losses, setting aside P12.8 billion – a substantial increase from the P6.6 billion allocated the prior year. This proactive measure reinforces the bank’s balance sheet strength.
The bank’s gross nonperforming loan ratio remained stable at 2.89%, with robust reserve coverage at 85.61%, indicating a well-managed loan portfolio.
Net loans experienced a 3% year-on-year increase, reaching P696.638 billion, with particularly strong growth in the retail lending sector. Retail loans now represent 32% of the total loan portfolio, up from 29% the previous year.
Growth in retail lending was particularly notable, with auto loans increasing by 24%, credit cards by 16%, and home loans by 9%. This shift highlights the bank’s focus on serving individual customers.
Deposits grew by a substantial 16% to P930.503 billion, with low-cost current and savings account deposits increasing by 9% and now comprising 49% of the total deposit base. This demonstrates strong customer confidence and a stable funding source.
Total assets reached P1.19 trillion, a 6% increase from the previous year, while total equity grew by 9% to P154.23 billion, further solidifying the bank’s financial position.
Capital ratios remained strong, with a common equity Tier 1 ratio of 12.33% and a total capital adequacy ratio of 13.21%, exceeding regulatory requirements and providing a buffer for future growth.
Despite the positive financial results, the bank’s shares experienced a slight decline on Monday, closing at P71 apiece, down P2.85 or 3.86%.
