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Net income increased 3 percent year on year to P11.60 billion, reflecting higher provisions for credit and impairment losses even as operating performance accelerated.
The bank set aside P12.80 billion in provisions, up from P6.60 billion a year earlier, underscoring its push to strengthen resilience.
Core engine gains speed
Pre-provision operating profit rose 26 percent to P27.60 billion, highlighting the bank’s expanding earnings capacity before credit costs.
Net interest income grew 15 percent to P50.50 billion, while full-year net interest margin stood at 4.66 percent, demonstrating sustained margin resilience despite market volatility.
Non-interest income jumped 47 percent to P16.50 billion, driven by higher securities trading gains, foreign exchange income, and contributions from joint ventures and associates. Service charges, fees and commissions totaled P8.90 billion.
Excluding a one-off bancassurance milestone fee recognized in the first quarter of 2024, fee income increased 18 percent, supported by credit cards, bancassurance, payments and capital markets activities.
In a statement, president and CEO Victor Lee Meng Teck said the results reflect the benefits of prior investments and a renewed focus on disciplined growth, improved asset quality and long-term value creation.
Asset quality steady
The gross non-performing loan ratio eased to 2.89 percent from 3.02 percent in the previous quarter, while reserve coverage stood at 86 percent, up from 81 percent a year earlier. Return on shareholders’ equity was 7.87 percent.
For the fourth quarter, net income declined to P2.60 billion due mainly to higher provisioning. Revenues for the quarter rose 22 percent to P18.10 billion, while pre-provision operating profit increased 34 percent to P7.20 billion.
Funding and capital solid
Total deposits expanded 16 percent to P930.50 billion, with current and savings account deposits accounting for 49 percent of the total, according to the company statement.
Net loans rose 3 percent to P697 billion, driven by 14 percent growth in retail lending, which now makes up 32 percent of total loans.
Liquidity remained robust, with a liquidity coverage ratio of 200 percent and net stable funding ratio of 146 percent.
Shareholders’ capital increased 9 percent to P154.20 billion, while total assets grew 6 percent to P1.20 trillion.
The takeaway
Security Bank’s 2025 performance reflects a bank leaning into revenue expansion while deliberately strengthening credit buffers, positioning itself for steadier growth amid an uncertain operating environment. — Princess Daisy C. Ominga | ED: Corrie S. Narisma
