Security Bank Corp. reported a three-percent improvement in net income to ₱11.6 billion last year as net interest income grew while non-interest earnings surged.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, March 2, the bank said it balanced revenue growth with higher credit provisioning to reinforce balance-sheet resilience amid a challenging macroeconomic environment.

Total revenues grew 22 percent year-on-year to ₱66.9 billion in 2025, supported by sustained performance across its core banking businesses and diversified income streams.

Pre-provision operating profit (PPOP) rose 26 percent year-on-year to ₱27.6 billion, underscoring the bank’s core earnings capacity.

“We are seeing the benefits of the strong foundations we have built. Following a period of intentional investment and operating in a more challenging macro environment, we are refocusing on disciplined growth, delivering strong revenue momentum, improving asset quality, and maintaining a resilient balance sheet,” said Security Bank President and Chief Executive Officer (CEO) Victor Lee Meng Teck.

He noted that, “This reflects our BetterBanking approach, focused on long-term value and serving our customers and all stakeholders responsibly.”

Net interest income increased 15 percent year-on-year to ₱50.5 billion, supported by healthy asset yields and disciplined funding. Full-year net interest margin (NIM) stood at 4.66 percent, reflecting sustained margin resilience despite market volatility.

Total non-interest income jumped 47 percent to ₱16.5 billion, driven by higher securities trading gains, foreign exchange (forex) income, and the bank’s share in net income from joint ventures (JVs) and associates.

Service charges, fees, and commissions totaled ₱8.9 billion, slightly lower than the previous year due to the one-off bancassurance milestone fee recognized in the first quarter of 2024.

Excluding this milestone fee, fee income increased 18 percent year-on-year, led by credit cards, bancassurance, payment services, and capital markets activities.

Operating expenses (opex) increased 19 percent year-on-year, reflecting investments in people, technology, and service capabilities that support scale, efficiency, and customer experience. The cost-to-income ratio improved marginally to 58.75 percent from 60.23 percent.

In line with its disciplined risk management approach, the bank increased provisions for credit and impairment losses, setting aside ₱12.8 billion compared with ₱6.6 billion a year earlier.

Asset quality remained stable during the year, with the gross non-performing loan (NPL) ratio declining to 2.89 percent from 3.02 percent a quarter ago and 2.85 percent a year earlier. NPL reserve coverage stood at 86 percent, unchanged from a quarter ago and up from 81 percent a year earlier.

Total deposits increased 16 percent year-on-year to ₱930.5 billion, with current account and savings account (CASA) deposits growing nine percent and accounting for 49 percent of total deposits.

Net loans increased to ₱697 billion, up three percent year-on-year and four percent quarter-on-quarter, driven by continued growth in retail lending.

Retail loans expanded 14 percent year-on-year, with auto loans up 24 percent, credit cards 16 percent, and home loans nine percent. Retail loans now account for 32 percent of total loans, up from 29 percent a year ago.

Total investment securities stood at ₱354 billion, up five percent year-on-year.