Security Bank (SECB) investor relations material

Executive summary

• Q2-2026 net income reached P3.4 billion, up 25% quarter-over-quarter and 11% year-over-year, the highest in 16 quarters.

• H1-2026 net income totaled P6.1 billion, a 3.9% increase year-over-year, with EPS improving to P8.07 from P7.77.

• H1-2026 revenue grew 11% year-over-year to P34.9 billion.

• Total assets at Q2-2026 were P1.19 trillion, mainly due to lower loans and receivables, offset by higher investment securities at amortized cost.

• Capital adequacy ratio (CAR) stood at 13.48%, well above regulatory minimums.

Financial highlights

• Net interest income for H1-2026 was P32.4 billion, up 33.1% year-over-year; Q2-2026 net interest income rose 13% quarter-over-quarter and 38% year-over-year to P17.2 billion.

• Non-interest income for H1-2026 dropped 65% year-over-year to P2.5 billion, mainly due to lower FX and trading gains.

• Operating expenses for H1-2026 increased by P3.2 billion, with provisions for credit losses up by P2.5 billion.

• Pre-provision operating profit for H1-2026 was P15.4 billion, up 21% year-over-year.

• Return on average assets was 1.02%, and return on average equity was 7.85%.

Outlook and guidance

• Priorities include improving cost-to-income ratio to 55%-58%, maintaining CET1 ratio around 12.5%, focusing on higher-quality loans, managing credit cost at 210 bps, and rolling out digital channels.

• Liquidity remains robust with a liquid assets to total assets ratio of 38.44%.

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

• No significant events or uncertainties expected to materially impact operations.