SECURITY Bank Corp. posted a 1-percent year-on-year increase in net income in the first nine months of 2026 to P9.2 billion as stronger revenues and improved operating efficiency supported its core banking performance.
The bank said on Friday that total revenues rose 8 percent year on year to P52.5 billion while pre-provision operating profit (P-pop) increased 12 percent to P22.9 billion.
Net interest income reached P50 billion, with the net interest margin at 5.93 percent. Service charges, fees and commissions contributed P6.1 billion.
Operating expenses grew at a slower pace of 4 percent, compared with the 8-percent increase in revenues, bringing the cost-to-income ratio down to 56.4 percent from 58.1 percent a year earlier.
The bank’s gross nonperforming loan (NPL) ratio stood at 3.17 percent as of end-September, while its NPL reserve cover was 84 percent.
For the third quarter alone, Security Bank recorded revenues of P17.6 billion and P-pop of P7.4 billion. Net income reached P3.1 billion.
Operating expenses increased 2 percent quarter on quarter, while provisions for credit losses declined 9 percent to P3.4 billion from the preceding quarter.
On the funding side, total deposits increased 4 percent year on year to P938 billion, with current and savings account (CASA) deposits rising 9 percent. CASA deposits accounted for 52 percent of total deposits, up from 49 percent a year earlier.
Net loans stood at P680 billion, up 1 percent, while investment securities totaled P380 billion.
The bank’s total assets expanded 8 percent to P1.23 trillion as of Sept. 30.
Security Bank maintained a liquidity coverage ratio of 232 percent and a net stable funding ratio of 147 percent. Its common equity Tier 1 ratio stood at 12.4 percent while total capital adequacy ratio was at 13.3 percent.
Meanwhile, the bank’s board approved a second-half regular cash dividend of P1.50 per common share, payable on Nov. 25.
This brings its total regular cash dividends for 2026 to P3.00 per common share, following a P1.50-per-share dividend paid in May.
Security Bank also expanded its branch network to 397 locations after opening 19 branches during the first nine months, including five in the third quarter. It opened another branch in October.
The bank earlier unveiled a three-year strategy focused on wealth management, entrepreneur banking, and corporate and institutional banking, building on its capabilities and strategic partnership with Japan’s MUFG Bank.
“Our nine-month results show good progress in the business, particularly in revenue growth and operating efficiency,” Security Bank President and CEO Officer Victor Lee said.
He said the bank would continue to manage costs, credit and capital while focusing on businesses with long-term growth opportunities.
On Friday, Security Bank shares closed unchanged at P62.10 each.
