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Security Bank posts PHP6.1B H1 net income

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MAKATI CITY, Philippines – Security Bank Corporation (PSE: SECB) reported PHP6.1 billion in net income for the first half of 2026 (H1-2026), up 4% year-on-year (YoY), as stronger revenues, better operating efficiency, and prudent credit management supported the Bank’s performance. Second-quarter momentum strengthened, with Q2-2026 net income rising 25% quarter-on-quarter (QoQ) and 11% year-on-year to PHP3.4 billion.

Pre-provision operating profit rose 21% year-on-year to PHP15.4 billion, reflecting the Bank’s core earnings expansion and continued focus on disciplined, quality growth. Total revenues increased 11% to PHP34.9 billion.

Net interest income grew to PHP32.4 billion, with net interest margin at 5.78%. Service charges, fees, and commissions reached PHP4.2 billion. Operating expenses increased 3% year-on-year, well below revenue growth, bringing the cost-to-income ratio down to 55.7% from 59.6% in H1-2025.

The Bank sustained a prudent and proactive approach to credit. Provisions for credit losses were PHP7.6 billion for the first half. Asset quality indicators improved, with the gross non-performing loan ratio declining to 3.04% from 3.16% a year ago and 3.08% in the previous quarter. NPL reserve cover also improved to 85% from 79% a year ago and 81% in the previous quarter.

Q2 momentum strengthened

In the second quarter, total revenues rose to PHP17.9 billion, up 5% quarter-on-quarter and 11% year-on-year. Pre-provision operating profit reached PHP7.9 billion, up 6% from the previous quarter and 19% from the same period last year. Provisions for credit losses were PHP3.7 billion, lower than the PHP3.9 billion recorded in the first quarter.

Strong liquidity and capital position

Total deposits stood at PHP891 billion, with CASA deposits up 8% year-on-year. CASA accounted for 52% of total deposits, higher than 49% a year ago and 51% in the previous quarter. Net loans stood at PHP675 billion, up 1% year-on-year, as the Bank continued to rebalance its portfolio toward higher-quality segments. Total investment securities were PHP362 billion.

Security Bank continues to maintain strong liquidity and capital ratios. As of June 30, 2026, Liquidity Coverage Ratio was 206% and Net Stable Funding Ratio was 145%, both well above regulatory minimums. Common Equity Tier 1 Ratio improved to 12.6% from 12.2% in the previous quarter and 12.3% a year ago. Total Capital Adequacy Ratio improved to 13.5%, compared with 13.1% in the previous quarter and 13.2% a year ago.

Shareholders’ capital increased to PHP155.7 billion, up 5% year-on-year and 1% quarter-on-quarter. Total assets stood at PHP1.19 trillion, up 3% year-on-year.

“As Security Bank marks its 75th year, we are building momentum with discipline,” said Victor Lee, president and CEO of Security Bank. “We grew revenues faster than expenses, improved efficiency, strengthened reserve cover, and maintained strong capital and liquidity. Our focus is to keep growing responsibly while making banking simpler, faster, and more responsive for the customers and businesses we serve.”

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Security Bank refinances 17.4 MW Hermosa solar plant

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MAKATI CITY, Philippines — Security Bank Corporation (PSE:SECB) is supporting renewable energy development in the Philippines as the sole lender for the 17.4 MW Solana Solar Beta, Inc.’s (“SSBI”) Solar Power Project (the “Project”) in Hermosa, Bataan, supplying electricity to Peninsula Electric Cooperative, Inc. (“PENELCO”).

Developed by SSBI, part of CN Green Roof Asia (“Green Roof Asia”), the Project is expected to generate approximately 35.5 gigawatt-hours of electricity annually and supply 10 MW of equivalent generation under a 20-year power supply agreement with PENELCO. Green Roof is grateful for the opportunity to supply PENELCO with renewable energy to meet its customers’ energy needs in the province.

The transaction is the Bank’s first partnership with Climate Fund Managers, a climate-focused blended finance investment manager, and Norfund, the Norwegian investment fund for developing countries – two globally recognized institutions working to mobilize capital for sustainable infrastructure across emerging markets.

The Bank provided a project refinancing facility, with Security Bank Capital Investment Corporation acting as arranger and the Bank’s Trust and Asset Management Group serving as Facility Agent and Security Trustee. The Omnibus Loan and Security Agreement was signed on May 26, 2026, and the loan disbursement was completed on June 25, 2026.

“Electric cooperatives play an important role in delivering electricity to communities across the country,” said Yvonne Marcelo, EVP and Corporate Banking Group Head at Security Bank. “Through this transaction, we are supporting the delivery of additional renewable energy capacity in Bataan while establishing our first partnership with Climate Fund Managers and Norfund. As the sole lender, we continue to support investments that contribute to the expansion of renewable energy infrastructure in the Philippines.”

“We are pleased to partner with Security Bank on this transaction, which demonstrates the growing role local financial institutions can play in supporting renewable energy infrastructure in the Philippines,” said Ryan Oetama, Investment Director at Climate Fund Managers. “The financing of the Bataan solar project reflects increasing confidence in renewable energy as an attractive investment opportunity that can deliver both commercial returns and positive environmental impact.”

“This transaction augments a niche renewable energy supply segment in the Philippines, a core market and a meaningful strategy for Norfund. It will help meet a larger share of domestic energy demand, improve energy security, and increase diversification in both the provincial and national energy mix at a much-needed time. We are grateful to our JV partners in Climate Fund Managers and congratulate Green Roof Asia for delivering this project for its host community. We look forward to working with Security Bank on more transactions in the Philippines,” said Felix Barwinek, Senior Investment Manager at Norfund.

“This refinancing is an important milestone for Green Roof Asia in the Philippines as it demonstrates that well-structured renewable energy projects continue to attract strong financial backing, allowing us to continue to develop, construct, and deliver reliable clean energy infrastructure across Southeast Asia. We look forward to supporting more electric cooperatives and meeting their growing demand,” said Steve Rawles, CEO at CN Green Roof Asia.

Financing renewable energy for electric cooperatives

Security Bank’s participation supports the financing of renewable energy projects serving electric cooperatives, a segment with limited participation from local banks.

PENELCO, the Project’s offtaker, has a peak demand of approximately 148 MW and serves customers across multiple barangays and municipalities in Bataan.

The Project is connected to PENELCO’s distribution system through an embedded connection, enabling the delivery of renewable energy within the cooperative’s service area.

Part of a regional renewable energy platform

The Project forms part of Green Roof Asia’s portfolio of solar developments across Southeast Asia, covering rooftop and utility-scale systems.

Green Roof Asia is a joint venture between Climate Fund Managers’ EU-supported Climate Investor One Fund and Norfund.

Climate Fund Managers raises and deploys blended climate finance funds, working in partnerships to deliver climate mitigation and adaptation solutions in Asia, Africa, and Latin America. Norfund’s mandate is to invest in businesses that support sustainable development and the transition to net zero.

A growing renewable energy portfolio

The transaction adds to the Bank’s growing renewable energy portfolio, reflecting its participation in financing 24 renewable energy developments nationwide that collectively represent 4.30 GW of installed capacity. It also contributes to the Bank’s broader sustainable finance portfolio, which reached PHP116.95 billion in total disbursements as of May 2026.

By financing renewable energy projects and expanding partnerships with institutions committed to sustainable development, Security Bank continues to support renewable energy infrastructure in the Philippines.

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Business

Security Bank announces leadership transition in wholesale banking

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MAKATI CITY, Philippines – Security Bank announced that John Cary Ong has decided to step down as head of the Wholesale Banking Segment (WBS).

Mr. Ong has been a valued member of Security Bank’s leadership team and has contributed to the growth and development of the Bank’s wholesale banking franchise. “John has made meaningful contributions to our wholesale banking business, and we thank him for his leadership and service. We wish him every success in his future endeavors,” said Security Bank president and CEO Victor Lee.

In the interim, Victor Lee will oversee the segment, working closely with Hirofumi Umeno, head of Alliance Segment, Yvonne Marcelo, head of Corporate Banking, Jorge Lindley Ong, head of Commercial Banking, and Virgilio Chua, president and CEO of Security Bank Capital. Their leadership and industry experience will ensure a seamless transition and continued momentum across the business.

Lee added: “Wholesale banking remains a key growth engine for the Bank, underpinned by an experienced leadership team and a strong foundation for the future. With the support of our alliance partner and shareholder MUFG, we are well-positioned to capture emerging opportunities and create long-term value for our stakeholders. Our clients can expect continuity in leadership and service as we further strengthen our corporate, commercial, and institutional banking franchise.”

Security Bank Corporation is one of the Philippines’ leading universal banks, with total assets of PHP1.2 trillion as of March 31, 2026. Founded in 1951, the Bank has a nationwide network of 390 branches and 666 ATMs, Cash Recycler Machines (CRMs), and Cash Acceptance Machines (CAMs).

Security Bank was recognized as Best Private Bank in the Philippines by Global Finance and Philippines’ Best for High-Net-Worth by Euromoney in 2026. The Bank was also named the top Philippine bank in the TIME and Statista Best Companies Asia-Pacific rankings and holds an MSCI ESG Rating of “A.”

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Security Bank appoints JD Yap as chief financial officer

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MAKATI CITY, Philippines – Security Bank Corporation announced today the appointment of executive vice president John David “JD” Yap as the Bank’s new chief financial officer (CFO), effective June 13, 2026.

Yap currently serves as executive vice president (EVP) and head of the Business Banking Segment (BBS), one of the Bank’s core growth businesses. He has led the expansion of the Bank’s SME franchise while strengthening capabilities across sales, analytics, digital, and portfolio management.

Under Yap’s leadership, BBS received multiple industry recognitions in 2025, including Best Bank for SMEs in the Philippines from Asia Banking & Finance, FinanceAsia, and The Digital Banker.

He succeeds SVP Allen Reyes, whose last working day with the Bank will be on June 12, 2026. Reyes will be leaving the Bank to pursue other opportunities.

As CFO, Yap will lead the Bank’s financial planning and analysis, finance strategy, regulatory and financial reporting, capital management, investor relations, sustainability, and related finance functions. He will help drive the Bank’s focus on disciplined execution, balance sheet strength, and sustainable long-term growth.

“JD has a strong record of building businesses, leading teams, and driving execution at scale,” said Security Bank president and CEO Victor Lee. “His appointment reflects the Bank’s continued focus on leadership continuity, disciplined growth, and long-term capability building.”

Yap brings more than 25 years of experience across banking, finance, analytics, business development, and risk management. Prior to joining Security Bank, he held senior leadership roles in Singapore with organizations such as Standard Chartered Bank, Fullerton Financial Holdings, United Overseas Bank, and Grab Finance.

During the transition period, Yap will continue to oversee the Business Banking Segment on an interim basis. Governance and oversight arrangements will remain in place to ensure continuity and clear accountability during this period.Security Bank said existing BBS leadership teams and operations will continue as normal throughout the transition.

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Security Bank and MUFG mark a decade connecting Philippine growth to global capital

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MAKATI, Philippines — Security Bank Corporation and MUFG Bank, Ltd. (MUFG) are marking a decade of strategic partnership that has helped connect Philippine clients to global capital, deepen regional connectivity, and support sustainable growth.

The partnership reflects Security Bank’s commitment to BetterBanking—delivering simpler, faster, and more connected banking experiences for clients operating across markets.

The milestone comes as the Philippines assumes the 2026 ASEAN chairmanship, underscoring the growing role of financial institutions in linking global capital to regional opportunity and supporting cross-border growth.

It also coincides with a milestone year for both institutions—Security Bank’s 75th anniversary, MUFG Manila’s 73rd year in the country, and the 70th anniversary of Philippines-Japan diplomatic relations.

Security Bank was the first Philippine bank to establish an equity partnership with a major Japanese global bank, expanding access to international networks, expertise, and capital as Filipino companies increasingly looked beyond domestic markets.

In 2016, Security Bank Corporation and MUFG Bank sealed its strategic partnership. Pictured L-R  Alberto S. Villarosa, Chairman, Security Bank from 2015 to 2023; Frederick Y. Dy, Chairman Emeritus, Security Bank; Go Watanabe, Managing Executive Officer and Chief Executive Officer for Asia and Oceania at MUFG Bank from 2013-2016

“Our partnership with MUFG enables us to deliver BetterBanking at scale—making it simpler and faster for our clients to access capital, expand across markets, and execute on their growth strategies,” said Victor Lee Meng Teck, President and Chief Executive Officer of Security Bank. “Through MUFG’s network and its Partner Banks across ASEAN, we can support clients as they invest and operate beyond borders. As regional integration accelerates, this connectivity becomes even more critical.”

Enabling investment and industry growth

Over the past decade, the partnership has supported inbound investment and industry development by connecting global investors with opportunities in the Philippines.

“Our collaboration with Security Bank, since the start of our partnership in 2016, reflects a shared commitment to supporting clients as they invest and grow in the Philippines and across ASEAN,” said Masatoshi Komoriya, senior managing executive officer, chief executive, Global Commercial Banking Business Unit, MUFG. “By combining local market insight with MUFG’s global network and regional partnerships, we will continue contribute to sustainable economic development across the region.”

Key examples include:

  • Automotive financing: Through MUFG’s network, Mitsubishi Motors Corporation, the 2nd largest in the Philippine market, and Security Bank established Mitsubishi Motors Finance Philippines Inc. in 2025, expanding financing access for dealers and customers and supporting the brand’s growth in the country. 
  • Industrial investment: Security Bank Capital advised Sumitomo Osaka Cement Co. Ltd. on its investment in Philcement Corporation, contributing to capacity-building in the local cement industry and development of social infrastructure. 
  • Investment promotion: Security Bank, MUFG, and the Board of Investments (BOI) signed memoranda of understanding in 2018 and 2023 to attract foreign investment, enhance competitiveness, and support job creation.

Extending reach through MUFG’s ASEAN partner network

From left: Jin Yoshida, Global Alliance Strategy Director, PT Bank Danamon Indonesia Tbk;  Bunsei Okubo, Head of Japanese Corporate and Multinational Corporate Banking, Bank of Ayudhya PCL; Kenichi Yamato, President and Chief Executive Officer, Bank of Ayudhya PCL; Yasushi Itagaki, Deputy President, MUFG Bank Ltd.; Masakazu Osawa, Managing Executive Officer & Regional Executive for Asia Pacific, MUFG Bank, Ltd.; Hirofumi Umeno, MUFG Business Development Head, Security Bank Corporation; and Nguyen Dinh Vinh, Deputy General Director, Vietnam Joint Stock Commercial Bank for Industry and Trade, during the MOU signing of the ASEAN Link collaboration in 2024.

A key strength of the partnership is access to MUFG’s regional partner bank network—including Krungsri in Thailand, Danamon in Indonesia and VietinBank in Vietnam—helping clients navigate Southeast Asia more seamlessly.

Through this network, Security Bank has facilitated client referrals, business matching, and cross-border financing opportunities—helping Philippine companies expand regionally, while supporting international firms entering the Philippine market.

In 2025, the ecosystem expanded further through a multilateral initiative with MUFG, the Department of Trade and Industry, Krungsri, MUFG Innovation Partners and Krungsri Finnovate to support startups and enable regional business matching.

Broadening impact through expanded partnerships

Beyond core banking collaboration, the Security Bank–MUFG alliance has enabled a broader set of partnerships that offers expanded and advanced financial services across its retail customer base in the Philippines.

A key example is SB Finance, supported by Krungsri and Security Bank, which has expanded consumer lending and financial inclusion in the Philippines and reflects how the partnership has grown beyond traditional banking.

The broader ecosystem also includes collaborations across digital platforms and payments, including Grab, Akulaku, MarCoPay, GCash, and Home Credit, reflecting a shared focus on responsible growth in consumer and digital finance.

Advancing sustainable financing at scale

Sustainable finance has become a key pillar of the partnership, supporting the Philippines’ transition to a low-carbon economy.

In 2023, Security Bank established its Sustainable Finance Framework, drawing on MUFG’s global expertise to expand financing solutions for projects with environmental and social impact.

A recent example is the joint financing of pumped storage renewable energy developments of Prime Infrastructure Capital Inc. (Prime Infra), where Security Bank acted as an arranger and lender alongside MUFG as a green loan coordinator.

Looking ahead

MUFG’s continued focus on Asia positions the partnership to further support Filipino clients’ access to global and regional markets. 

The expected visit to Manila in June 2026 of MUFG President and Chief Executive Officer Masakazu Osawa further reflects the depth and momentum of the relationship in this milestone year.

As regional integration accelerates, Security Bank and MUFG remain focused on what this partnership has always been about: connecting clients to opportunity, expanding access to capital, and helping power the Philippines’ next chapter of growth.

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Security Bank ranked #1 among domestic banks in Euromoney Trade Finance Survey 2026

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MAKATI CITY, Philippines – Security Bank Corporation (PSE:SECB) has been ranked #1 Overall in the Philippines among Domestic Banks and #1 for Trade Finance Products in the Philippines in the client-led Euromoney Trade Finance Survey 2026

The Euromoney Trade Finance Survey is one of the industry’s most widely recognized benchmarks, based on direct feedback from trade finance users evaluating banks on product capability, service quality, and relationship strength.

In the 2026 survey, Security Bank achieved top rankings across several core trade finance solutions, including letters of credit, trade loans and structured trade financing, guarantees, foreign exchange services, and documentary collections, reflecting the Bank’s ability to support clients across the full lifecycle of trade transactions.

Respondents most frequently cited competitive pricing and strong customer service as key strengths, alongside high ratings for product capability, relationship management, and service delivery.

“This recognition reflects the trust our clients place in us to support their trade flows and working capital needs,” said John Cary Ong, EVP and wholesale banking segment head at Security Bank. “As global trade becomes more complex and supply chains evolve, we remain focused on delivering solutions that help clients manage risk, optimize working capital, and keep goods and capital moving across markets with confidence.”

Security Bank continues to expand its transaction banking and trade finance capabilities to support corporates, importers, exporters, and financial institutions participating in regional and global trade. 

The recognition reflects Security Bank’s growing momentum in trade and supply chain finance as more Philippine corporates look for reliable banking partners to support cross-border trade and working capital needs.

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