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Security Bank Corporation (PSE: SECB) reported continued growth in core operating performance in the first nine months of 2026 (9M-2026), with pre-provision operating profit growing 12% year-on-year to PHP22.9 billion. Total revenues increased to PHP52.5 billion, up 8% year-on-year. Net income was PHP9.2 billion, up 1% year-on-year.
Net interest income increased to PHP50.0 billion, with net interest margin at 5.93%. Service charges, fees, and commissions stood at PHP6.1 billion. Operating expenses grew 4% year-on-year, while revenues grew 8%, bringing the cost-to-income ratio down to 56.4% from 58.1% a year ago.
The gross non-performing loan ratio is at 3.17%, with NPL reserve cover at 84%.
Quarterly performance
In the third quarter, total revenues stood at PHP17.6 billion and pre-provision operating profit at PHP7.4 billion. Operating expenses grew 2% quarter-on-quarter, while provisions for credit losses decreased 9% from the previous quarter to PHP3.4 billion. Net income was PHP3.1 billion for the quarter.
Liquidity and capital position
Total deposits increased to PHP938 billion, up 4% year-on-year, with CASA deposits increasing 9% year-on-year and 4% quarter-on-quarter. CASA accounted for 52% of total deposits, up from 49% a year ago. Net loans stood at PHP680 billion, up 1% year-on-year. Total investment securities stood at PHP380 billion.
Security Bank maintained its liquidity and capital position, with Liquidity Coverage Ratio (LCR) at 232% and Net Stable Funding Ratio (NSFR) at 147% as of September 30, 2026. Common Equity Tier 1 Ratio stood at 12.4%, Total Capital Adequacy Ratio at 13.3%, and shareholders’ capital at PHP153.6 billion. Total assets increased to PHP1.23 trillion, up 8% year-on-year.
The Bank expanded its branch network to 397 branches to date, opening 19 new branches in the first nine months of 2026, including five in the third quarter, and one additional branch in October.
On August 27, 2026, Security Bank unveiled its three-year strategy focused on wealth management, entrepreneur banking, and corporate and institutional banking. The Bank will build on its capabilities in these businesses, client relationships, and strategic partnership with MUFG Bank.
On October 27, 2026, the Bank’s Board of Directors approved the second semestral regular cash dividend of PHP1.50 per common share, payable on November 25, 2026. This will bring the total cash dividends for the year to PHP3.00 per common share. The Bank paid a first-semester regular cash dividend of PHP1.50 per common share on May 8, 2026.
“Our nine-month results show good progress in the business, particularly in revenue growth and operating efficiency,” said Victor Lee, President and CEO of Security Bank. “We will continue to manage costs, credit, and capital carefully while remaining focused on the businesses where we see long-term opportunity. We’re clear about where we want to compete, and our focus is on executing our strategy with discipline.”
