Security Bank (SECB) Q1 2026 earnings summary

Executive summary

• Core NIAT reached PHP3.3 billion, with annualized ROE slightly above 8%.

• Net income attributable to equity holders was PHP2.7 billion, down from PHP2.8 billion year-over-year, with EPS at PHP3.58 versus PHP3.74.

• Total assets increased by PHP25.6 billion to PHP1.22 trillion as of March 31, 2026, driven by higher placements in interbank loans, investment securities, and joint ventures.

• Net interest income rose to PHP15.2 billion from PHP11.9 billion, supported by higher loan and securities interest, while other income declined due to lower trading and FX gains.

• Moody's revised the outlook to Stable.

Financial highlights

• Gross revenue for Q1 2026 was PHP17.0 billion, up from PHP15.4 billion year-over-year, but declined 6% from the previous quarter.

• Net interest income rose 28% year-over-year and 14% quarter-over-quarter to PHP15.2 billion.

• Non-interest income dropped 47% year-over-year to PHP1.9 billion, with service charges and fees down 4% year-over-year and 18% quarter-over-quarter.

• Operating expenses increased to PHP13.4 billion from PHP11.7 billion, mainly due to higher provisions for credit losses.

• Cost-to-income ratio improved to 55.89% from 60.59% year-over-year.

Outlook and guidance

• Focus on improving cost-to-income ratio to 55%-58%.

• Maintain CET1 ratio within 12.5%-13% amid macro volatility.

• Liquidity remains strong with a liquid assets to total assets ratio of 39.5%.

• No anticipated liquidity or cash flow issues in the next 12 months; all payables are current.

• Rollout of digital channels for Corporate, MSME, and Wealth segments.