Digital banking competition continued to pressure Philippine lenders in early 2026, but Security Bank Corp. reported stronger core earnings and tighter cost controls in the first quarter, lifting pre-provision operating profit by 24% year-on-year to ₱7.5 billion.
Total revenues grew 10% to ₱17 billion, while net income reached ₱2.7 billion, up 6% quarter-on-quarter. The bank said higher provisions for credit and impairment losses tempered profit growth as it adopted a more cautious approach amid changing market conditions. Security Bank set aside ₱3.9 billion in provisions during the quarter.
“We had a solid start to the year, driven by stronger core earnings and disciplined cost management,” said Victor Lee Meng Teck, president and CEO of Security Bank. “We remain focused on sustaining operational discipline, growing responsibly, and making banking simpler, faster, and more responsive for our customers.”
Net interest income climbed to ₱15.2 billion, while non-interest income reached ₱1.9 billion. Operating expenses increased only 2% year-on-year and fell 13% quarter-on-quarter, helping improve the bank’s cost-to-income ratio to 56% from 61% a year earlier.
The bank’s loan portfolio stood at ₱679.4 billion, up 5% year-on-year, as it shifted toward what it described as higher-quality lending segments. Deposits increased 12% to ₱938 billion, with low-cost CASA deposits accounting for 51% of total deposits.
Security Bank maintained strong liquidity and capital buffers, with Liquidity Coverage Ratio at 198% and Net Stable Funding Ratio at 145% as of March 31, 2026. Total assets grew 10% to ₱1.2 trillion, while shareholders’ capital increased 7% to ₱153.5 billion.
Asset quality remained manageable, with gross non-performing loan ratio at 3.08% and reserve cover at 81%. Moody’s Ratings recently affirmed the bank’s investment-grade Baa2 credit rating and revised its outlook to stable.
The bank also continued expanding its physical network despite the industry’s push toward digital banking. Security Bank opened nine new branches in the first quarter and added four more in April and May, bringing its total branch count to 390 nationwide.
On April 8, 2026, Security Bank declared a regular cash dividend of ₱1.50 per common share, payable on May 8, 2026.
[…] Security Bank posts 24% jump in core Q1 profit […]