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Makati City, Philippines — Security Bank Corporation (PSE: SECB) recorded PHP6.1 billion in net income for the first half of 2026, representing a 4% increase from the same period last year, as stronger revenues, improved efficiency, and disciplined credit management supported its financial performance.
Security Bank Reports PHP6.1 Billion Net Income in First Half of 2026
The Bank gained further momentum in the second quarter, with Q2 2026 net income reaching PHP 3.4 billion, up 25% from the previous quarter and 11% year-on-year.
Security Bank’s pre-provision operating profit climbed 21% year-on-year to PHP15.4 billion, reflecting continued growth in core earnings and the Bank’s focus on disciplined and sustainable expansion. Total revenues increased 11% to PHP 34.9 billion.
Revenues and Efficiency Continue to Improve
Net interest income reached PHP32.4 billion, while net interest margin stood at 5.78%. Service charges, fees, and commissions contributed PHP 4.2 billion during the first six months of the year.
Operating expenses rose by just 3% year-on-year, significantly slower than revenue growth. As a result, Security Bank improved its cost-to-income ratio to 55.7% from 59.6% in the first half of 2025.
The Bank also maintained a cautious approach to credit risk management. Provisions for credit losses totaled PHP 7.6 billion in H1 2026.
Asset quality indicators continued to improve, with the gross non-performing loan (NPL) ratio declining to 3.04%, compared with 3.16% a year earlier and 3.08% in the previous quarter. NPL reserve coverage also strengthened to 85%, up from 79% a year ago and 81% in the previous quarter.
Second-Quarter Performance Gains Momentum
Security Bank delivered stronger results in the second quarter, with total revenues reaching PHP 17.9 billion, a 5% increase from the previous quarter and an 11% increase year-on-year.
Pre-provision operating profit rose to PHP7.9 billion, increasing 6% quarter-on-quarter and 19% from the same quarter last year.
Meanwhile, provisions for credit losses amounted to PHP 3.7 billion, down from PHP 3.9 billion in the first quarter.
Deposits and Loans
Security Bank ended the first half with PHP891 billion in total deposits, supported by continued growth in low-cost current and savings account (CASA) deposits.
CASA deposits increased 8% year-on-year and accounted for 52% of total deposits, compared with 49% a year earlier and 51% in the previous quarter.
Net loans stood at PHP 675 billion, up 1% year-on-year, as the Bank continued to rebalance its lending portfolio toward higher-quality segments. Investment securities totaled PHP362 billion.
Strong Liquidity and Capital Position
Security Bank maintained solid liquidity and capital levels as of June 30, 2026.
The Bank’s Liquidity Coverage Ratio stood at 206%, while its Net Stable Funding Ratio was 145%, both comfortably above regulatory minimum requirements.
The Common Equity Tier 1 (CET1) ratio improved to 12.6%, compared with 12.2% in the previous quarter and 12.3% a year earlier. Total Capital Adequacy Ratio also strengthened to 13.5%, up from 13.1% in the previous quarter and 13.2% a year ago.
Shareholders’ capital increased 5% year-on-year and 1% quarter-on-quarter to PHP155.7 billion, while total assets reached PHP 1.19 trillion, representing 3% growth from a year earlier.
Security Bank Marks 75 Years
The results come as Security Bank celebrates its 75th anniversary, with the Bank emphasizing responsible growth, operational efficiency, and improved customer experience as key priorities moving forward.
“As Security Bank marks its 75th year, we are building momentum with discipline,” said Victor Lee, President and CEO of Security Bank. “We grew revenues faster than expenses, improved efficiency, strengthened reserve cover, and maintained strong capital and liquidity. Our focus is to keep growing responsibly while making banking simpler, faster, and more responsive for the customers and businesses we serve.
Security Bank’s first-half results highlight its continued efforts to strengthen its financial position while pursuing sustainable growth across its customer and business segments.
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