Insider Spotlight
Net income reached P2.7 billion in the first quarter, up 6 percent from the previous quarter, while total revenues climbed 10 percent year on year to P17 billion.
Pre-provision operating profit — a measure of earnings before reserves for possible bad loans — jumped 24 percent to P7.5 billion as operating expenses remained under control.
Why it matters
Banks are navigating slower loan growth, elevated borrowing costs, and lingering credit risks, making cost discipline and stable deposit growth increasingly important for investors.
Security Bank’s results suggest its core banking operations remained resilient even as it increased provisions for potential credit losses.
Net interest income, or earnings from lending activities, rose to P15.2 billion, while non-interest income reached P1.9 billion.
Operating expenses increased just 2 percent year on year and declined 13 percent quarter on quarter, improving the bank’s cost-to-income ratio to 56 percent from 61 percent a year earlier.
In a company disclosure, Security Bank said it set aside P3.9 billion in provisions for credit and impairment losses as part of a prudent risk-management strategy amid evolving operating conditions. Its gross non-performing loan ratio stood at 3.08 percent, while reserve cover reached 81 percent.
By the numbers
Total deposits expanded 12 percent year on year to P938 billion, supported by a 13 percent increase in current and savings account deposits, which made up 51 percent of total deposits.
Net loans rose 5 percent to P679.4 billion as the bank continued shifting toward what it described as higher-quality lending segments.
Total assets grew 10 percent to P1.2 trillion, while shareholders’ capital increased 7 percent to P153.5 billion.
The bank also maintained strong liquidity and capital buffers, with liquidity coverage ratio at 198 percent and capital adequacy ratio at 13.1 percent as of end-March.
What they’re saying
“We had a solid start to the year, driven by stronger core earnings and disciplined cost management,” Security Bank president and CEO Victor Lee Meng Teck said.
“We remain focused on sustaining operational discipline, growing responsibly, and making banking simpler, faster, and more responsive for our customers,” Lee added.
Security Bank expanded its network to 390 branches after opening nine new branches during the first quarter and four more in April and May.
Moody’s Ratings recently affirmed the bank’s investment-grade Baa2 rating and revised its outlook to stable.
The bank also declared a regular cash dividend of P1.50 per common share, payable on May 8. —Princess Daisy C. Ominga | Ed: Corrie S. Narisma
