Security Bank (SECB) investor relations material

Executive summary

• 9M 2026 operating income was ₱52.45B, up from ₱48.78B; net income rose to ₱9.20B from ₱9.07B and EPS to ₱12.20 from ₱12.03.

• Q3 net income was ₱3.11B, down 8% QoQ and 3% YoY; 9M comprehensive income fell to ₱0.49B from ₱13.20B.

• Net interest income rose 34.4% to ₱49.99B, while net other income fell to ₱2.47B from ₱11.58B, including a ₱7.87B FX loss.

Financial highlights

• 9M revenue was ₱52.45B, up 8% YoY; Q3 revenue was ₱17.6B, down 2% QoQ and up 2% YoY.

• Interest income rose 4.4% to ₱60.2B and interest expense declined ₱10.3B, lifting 9M net interest income 34.4% to ₱49.99B; Q3 net interest income rose 2% QoQ and 37% YoY to ₱17.6B.

• 9M pre-provision operating profit increased 12% to ₱22.9B; Q3 was ₱7.4B, down 6% QoQ and 3% YoY.

• Operating expenses excluding credit and impairment provisions rose 4% to ₱29.6B in 9M; Q3 expenses rose 6% YoY to ₱10.1B.

• 9M service charges, fees and commissions declined 4% to ₱6.09B; Q3 fell 13% QoQ and 10% YoY to ₱1.88B.

Outlook and guidance

• Target cost-to-income ratio of 56%–58%; maintain CET1 above 12% amid macro volatility.

• Manage core credit cost at ~210 bps and focus growth on higher-quality loans and earning assets with better returns.

• Roll out Corporate, MSME and Wealth digital channels, shifting from modernization toward monetization; strategy aims to support stronger 2027 performance.

• Liquid assets were 39.88% of total assets; no cash-flow or liquidity problems were anticipated over the next 12 months. Capital expenditure commitments, including technology and branch investment, are expected to be funded from operating cash flows.