Security Bank Corp. reported a 3.6-percent decline in net income to ₱2.7 billion in the first quarter of 2026 from ₱2.8 billion during the same period last year due to lower non-interest income and higher provisions amid challenging operating conditions.

In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, May 14, the bank said its pre-provision operating profit actually rose 24 percent year-on-year to ₱7.5 billion, supported by disciplined cost management.

“We had a solid start to the year, driven by stronger core earnings and disciplined cost management. We remain focused on sustaining operational discipline, growing responsibly, and making banking simpler, faster, and more responsive for our customers,” said Security Bank President and Chief Executive Officer (CEO) Victor Lee Meng Teck.

Total revenues reached ₱17 billion, up 10 percent year-on-year from ₱15.4 billion, as net interest income grew to ₱15.2 billion from ₱11.9 billion, while total non-interest income fell to ₱1.9 billion from ₱3.5 billion.

Operating expenses (opex) were well managed, increasing two percent year-on-year and decreasing 13 percent quarter-on-quarter, resulting in an improved cost-to-income ratio of 56 percent from 61 percent a year ago.

The bank set aside ₱3.9 billion in provisions for credit and impairment losses, higher year-on-year as part of its prudent risk management approach. Asset quality metrics remained manageable, with the gross non-performing loan (NPL) ratio at 3.08 percent and NPL reserve cover at 81 percent.

Total deposits increased 12 percent year-on-year to ₱938 billion, with current and savings account (CASA) deposits growing 13 percent year-on-year and accounting for 51 percent of total deposits.

Net loans stood at ₱679.4 billion, up five percent year-on-year as the bank continued to rebalance its portfolio toward higher-quality segments. Total investment securities stood at ₱370.4 billion.

The bank maintained healthy liquidity, with liquidity coverage ratio (LCR) at 198 percent and net stable funding ratio (NSFR) at 145 percent as of end-March.

Security Bank’s capital ratios remained healthy, with common equity tier 1 (CET1) ratio at 12.2 percent and total capital adequacy ratio (CAR) at 13.1 percent.

Shareholders’ capital increased to ₱153.5 billion, up seven percent year-on-year. Total assets rose to ₱1.2 trillion, up 10 percent year-on-year.

The bank expanded its branch network to 390 branches to date, opening nine new branches in the first quarter and four additional branches in April and May. - James A. Loyola