Security Bank (SECB) Q2 2025 earnings summary

Executive summary

• Revenue grew 23% year-over-year to ₱31.6 billion in H1-2025, with net income up 8% to ₱5.9 billion compared to H1-2024, and EPS at ₱7.77 versus ₱7.22.

• Net interest income rose 12% to ₱24.3 billion, while non-interest income surged 81% to ₱7.2 billion year-over-year.

• Total assets increased 22% to ₱1.15 trillion, driven by higher cash, investments, and joint venture stakes.

• Total equity grew by ₱6.6 billion, reflecting higher surplus and improved market valuations.

Financial highlights

• Operating expenses rose to ₱23.9 billion from ₱18.3 billion, mainly due to higher provisions for credit losses and increased compensation.

• Provisions for credit and impairment losses increased to ₱5.1 billion in H1-2025 from ₱3.3 billion in H1-2024.

• Gross NPL ratio improved to 2.50% as of June 30, 2025, with NPL reserve cover at 81%.

• Return on equity (ROE) was 8.11% and return on assets (ROA) was 1.03%.

• Net interest margin for Q2-2025 was 4.67%.

Outlook and guidance

• CASA (current and savings accounts) identified as a key growth engine.

• Focus on disciplined loan growth and maintaining non-interest income momentum.

• Liquidity remains robust with a liquid assets to total assets ratio of 37.7%.

• No material liquidity or cash flow issues are anticipated in the next twelve months.

• Capital adequacy ratio (CAR) at 13.24% is well above regulatory minimums, supporting future growth.