Security Bank Corp. reported a seven percent improvement in net profit to ₱9.1 billion in the first nine months of the year, buoyed by double-digit growth in both interest and non-interest income.

In a disclosure to the Philippine Stock Exchange, Security Bank said that total revenues in January to September grew 22 percent to ₱48.8 billion from ₱40 billion in the same period last year.

“We delivered another strong quarter, underscoring our continued focus on customer-centric growth, digital transformation, and operational efficiency,” said Security Bank President and Chief Executive Officer Sanjiv Vohra.

Vohra noted that the bank’s efficiency improved as “revenues continued to grow faster than expenses, with revenues rising 6.7 percent quarter-on-quarter against just a 0.8 percent growth in expenses. This drove stronger efficiency and profitability, as reflected in our improved cost-to-income and ROE ratios.”

Net interest income climbed 15 percent at end-September from the previous year to ₱37.2 billion. The net interest margin (NIM) also improved, reaching 4.7 percent in the nine-month period, from 4.56 percent in the first half of the year.

Net loans increased eight percent year-on-year to ₱672 billion, led by retail loans, which expanded 24 percent year-on-year. Within the retail portfolio, home loans grew 15 percent, credit card receivables rose 27 percent, and auto loans jumped 42 percent.

Total non-interest income surged 52 percent from a year ago ₱11.6$ billion. Service charges, fees, and commissions totaled ₱6.3$ billion.

Excluding a one-off bancassurance milestone fee recorded in the first quarter of 2024, the nine-month total for fees and commissions grew 20 percent year-on-year, led by credit cards, payment services, and capital market fees.

Operating expenses were 20 percent higher, driven by investments in manpower and technology aimed at accelerating transformation and growth. Despite this, pre-provision operating profit (PPOP) was up 24 percent ₱20.4 billion.

The Bank set aside ₱8.6 billion as provisions for credit losses, a 69 percent leap from the ₱5.1 billion provision a year ago.

Asset quality improved, with the gross non-performing loan (NPL) ratio falling to 3.02 percent from 3.16 percent in the prior quarter and 3.08 percent a year ago. Concurrently, the NPL reserve cover increased to 86 percent from 79 percent in the prior quarter and 79 percent a year ago.

Total deposits increased 25 percent year-on-year to ₱901 billion. Current account/savings account (CASA) deposits sustained 17 percent growth and account for 49 percent of total deposits.

Total investment securities stood at ₱354 billion, up 26 percent year-on-year. The bank also expanded its branch network to 365 to date, opening 15 new branches in the first nine months of the year, with an additional four branches launched in October and November.