Net interest income rose 11 percent to P11.9 billion, while net interest margin improved slightly to 4.51 percent, up 2 basis points quarter-on-quarter. Non-interest income more than doubled to P3.5 billion, driven by strong trading gains and service fees.
Service charges, fees, and commissions declined year-on-year due to a one-off bancassurance milestone fee in the first quarter of 2024; excluding this, the figure rose 27 percent.
Investment in manpower, digital transformation
Operating expenses grew 23 percent year-on-year as the bank continued investing in manpower and digital transformation. However, expenses declined 2 percent quarter-on-quarter. Pre-provision operating profit rose 24 percent to P6.1 billion. Provisions for credit and impairment losses amounted to P2.4 billion, up from P1.5 billion a year ago.
The bank’s asset quality improved, with a gross non-performing loan (NPL) ratio of 3.10 percent, down from 3.41 percent a year earlier. NPL reserve cover stood at 79 percent.
Rise in retail, MSME loans
On the balance sheet side, total deposits surged 32 percent to P841 billion, with CASA (current account and savings account) deposits up 19 percent year-on-year. Total loans grew 18 percent to P646 billion, driven by a 37-percent rise in retail and MSME loans. Wholesale loans also expanded by 11 percent year-on-year.
Security Bank continues to maintain strong liquidity positions, with a liquidity coverage ratio of 179 percent and a net stable funding ratio of 136 percent as of March 31, 2025. Return on shareholders’ equity rose to 7.92 percent from 7.71 percent. — Ed: Corrie S. Narisma
