Security Bank Corporation (PSE: SECB) today announced a strong financial performance for the first quarter of 2025, demonstrating significant growth in key areas. The Bank reported total revenues of PHP15.4 billion, a substantial 23% increase year-on-year, and a net profit of PHP2.8 billion, up 7% compared to the same period last year.
The robust revenue growth was underpinned by an 11% year-on-year increase in net interest income, reaching PHP11.9 billion. The Bank also improved its net interest margin to 4.51% in Q1-2025, a 2 basis point increase quarter-on-quarter.
A notable highlight was the surge in total non-interest income, which more than doubled to PHP3.5 billion, representing a 101% year-on-year growth. While service charges, fees, and commissions of PHP2.2 billion were lower than the previous year due to a one-off bancassurance milestone fee in Q1-2024, the underlying performance remained strong. Excluding this one-time item, service charges, fees, and commissions saw a healthy 27% increase year-on-year.
Security Bank continued to invest in its future, with operating expenses increasing by 23% year-on-year as the Bank strategically allocated resources towards manpower and technology to accelerate its transformation initiatives. Consequently, the cost-to-income ratio stood at 60.6%. Encouragingly, operating expenses decreased by 2% on a quarter-on-quarter basis. The Bank’s strong revenue growth resulted in a 24% year-on-year increase in pre-provision operating profit, reaching PHP6.1 billion.
In line with prudent risk management, Security Bank set aside PHP2.4 billion in provisions for credit and impairment losses in Q1-2025, an increase compared to the PHP1.5 billion recorded in the same period last year. The Bank’s asset quality remained sound, with the gross non-performing loan ratio decreasing to 3.10% from 3.41% a year ago. The NPL reserve cover stood at a comfortable 79%. The Bank’s focus on profitability also translated to an improved return on shareholders’ equity, which increased to 7.92% from 7.71% year-on-year.
Strong Balance Sheet Growth
Security Bank’s balance sheet demonstrated significant strength and expansion. Total deposits surged to PHP841 billion, marking an impressive 32% year-on-year increase and a 5% growth quarter-on-quarter. CASA deposits also showed strong momentum, growing by 19% year-on-year and 1% quarter-on-quarter, maintaining a healthy CASA ratio of 50% of total deposits.
Net loans reached PHP646 billion, reflecting an 18% year-on-year increase. Notably, the Bank saw significant growth in its Retail and MSME loan portfolio, which expanded by 37% year-on-year and 6% quarter-on-quarter, now comprising 36% of the total loan portfolio, up from 31% in the previous year. Wholesale loans increased by 11% year-on-year but saw a 10% decrease quarter-on-quarter. Total investment securities increased to PHP336 billion, a substantial 38% year-on-year increase, although it experienced a slight 1% decrease quarter-on-quarter.
The Bank maintained robust liquidity, with a Liquidity Coverage Ratio (LCR) of 179% and a Net Stable Funding Ratio (NSFR) of 136% as of March 31, 2025. Security Bank’s capital ratios also remained healthy, with the Common Equity Tier 1 Ratio increasing to 13.2% from 12.9% in the previous quarter, and the Total Capital Adequacy Ratio (CAR) rising to 14.1% from 13.8% quarter-on-quarter. Shareholders’ capital grew to PHP144 billion, up 5% year-on-year and 2% quarter-on-quarter. Total assets reached PHP1.1 trillion, a significant 25% increase year-on-year.
In a testament to its commitment to shareholder value, Security Bank approved a cash dividend declaration of PHP1.50 per common share on March 25, 2025, representing the regular semestral cash dividend, with a payment date of April 28, 2025.
“Our first quarter was marked by the growth on our deposit and loans. Profitable growth is our focus for 2025,” said Security Bank President & CEO, Sanjiv Vohra. “We will continue to support our clients, deploy innovative technology to deliver differentiated client experiences, and enhance efficiencies to generate improved returns.”
Security Bank is a private domestic universal bank in the Philippines with total assets of PHP1.1 trillion as of March 31, 2025. The Bank has been operating for 73 years since its establishment in 1951. To-date, Security Bank has a total of 348 branches and 710 ATMs, Cash Recycler Machines (CRMs) and Cash Acceptance Machines (CAMs).
