Security Bank Corp. grew its net income by four percent year-on-year to ₱6.1 billion in the first half of 2026 as stronger revenues, better operating efficiency, and prudent credit management supported its performance.

In a disclosure to the Philippine Stock Exchange (PSE) on Friday, Aug. 14, Security Bank said its second-quarter momentum strengthened, with net income rising 25 percent quarter-on-quarter and 11 percent year-on-year to ₱3.4 billion.

Pre-provision operating profit rose 21 percent year-on-year to ₱15.4 billion, reflecting the bank’s core earnings expansion and continued focus on disciplined, quality growth.

“We are building momentum with discipline. 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,” said Security Bank President and Chief Executive Officer (CEO) Victor Lee.

Total revenues increased 11 percent to ₱34.9 billion as net interest income grew to ₱32.4 billion, with net interest margin at 5.78 percent. Service charges, fees, and commissions reached ₱4.2 billion.

Operating expenses (opex) increased three percent year-on-year, well below revenue growth, bringing the cost-to-income ratio down to 55.7 percent from 59.6 percent in the first half of last year.

The bank sustained a prudent and proactive approach to credit and made provisions for credit losses amounting to ₱7.6 billion for the first half.

Asset quality indicators improved, with the gross non-performing loan (NPL) ratio declining to 3.04 percent from 3.16 percent a year ago and 3.08 percent in the previous quarter. NPL reserve cover also improved to 85 percent from 79 percent a year ago and 81 percent in the previous quarter.

In the second quarter, total revenues rose to ₱17.9 billion, up five percent quarter-on-quarter and 11 percent year-on-year. Pre-provision operating profit reached ₱7.9 billion, up six percent from the previous quarter and 19 percent from the same period last year.

Provisions for credit losses were at ₱3.7 billion in the second quarter of the year, lower than the ₱3.9 billion recorded in the first quarter.

Total deposits stood at ₱891 billion, with current and savings account (CASA) deposits up eight percent year-on-year. CASA accounted for 52 percent of total deposits, higher than 49 percent a year ago and 51 percent in the previous quarter.

Net loans stood at ₱675 billion, up one percent year-on-year, as the bank continued to rebalance its portfolio toward higher-quality segments. Total investment securities amounted to ₱362 billion.

Liquidity coverage ratio was 206 percent and net stable funding ratio was 145 percent, both well above regulatory minimums. Common equity tier 1 (CET1) ratio improved to 12.6 percent from 12.2 percent in the previous quarter and 12.3 percent a year ago.

Total capital adequacy ratio (CAR) improved to 13.5 percent, compared with 13.1 percent in the previous quarter and 13.2 percent a year ago. Shareholders’ capital increased to ₱155.7 billion, up five percent year-on-year and one percent quarter-on-quarter. Total assets stood at ₱1.19 trillion, up three percent year-on-year. - James A. Loyola