Security Bank Corporation (SECBPM)
Philippines / Banking
Active
Issuer Summary
Security Bank Corporation is an upper mid-tier private universal bank in the Philippines. Its issuer credit is supported by deposits, liquidity, NIM, the strategic relationship with MUFG, JCR A-/Stable, and Moody’s Baa2/P-2 assessment. On the other hand, higher provisions in 2025, the reported decline in Q1 2026 earnings, growth in retail and consumer finance, and the downward direction of capital ratios are reasons not to treat the bank as comparable with the top-tier banks. Senior credit can be viewed as investment-grade bank credit, but individual bonds require confirmation of ranking, terms, and liquidity by currency.
The current credit level can be treated as an investment-grade Philippine bank credit for senior issuer credit, but not as having the low-risk profile of the top-tier banks. Security Bank is supported by PHP930.50bn of deposits, LCR of 200%, NSFR of 146%, CET1 of 12.33%, total capital adequacy ratio of 13.21%, JCR A-/Stable, and Moody’s Baa2/P-2 assessment confirmed on the company ratings page. Near-term funding anxiety is not high. The credit direction is broadly stable, leaning sideways. PPOP and revenue growth in 2025 are positive, but the increase in provisions for credit and impairment losses and the decline in earnings reported for Q1 2026 before confirmation of the official Form 17-Q restrain the improvement assessment. The probability of a rapid deterioration in the credit level or direction is not currently high, but if NPLs, provisions, NIM, and CET1 deteriorate simultaneously, the headroom within the investment-grade assessment would need to be reassessed.
The credit profile is supported by deposits, liquidity, NIM, non-interest income, and the relationship with MUFG. Security Bank is not as large as the top three banks, but it is an upper-tier domestic private bank, ranked sixth by total assets and eighth by capital funds, with 377 branches and multiple divisions across corporate, individual, SME, and financial markets businesses. The relationship with MUFG can be positive for Japanese companies, wholesale business, risk management, brand, and capital markets access. JCR’s A-/Stable also assesses both this relationship and the bank’s standalone credit strength.
The main constraint is credit costs and the quality of retail growth. Provisions in 2025 were PHP12.76bn, a sharp increase from the prior year. The gross NPL ratio of 2.89% does not indicate material deterioration, but the Q1 2026 press report stated that it rose to 3.08% and that reserve cover declined to 81%. This is supplementary information before confirmation of the official Form 17-Q, and Stage 2/3 and delinquency vintages have not been confirmed. Security Bank’s high NIM is an earnings buffer for absorbing credit costs, but it is also the other side of taking risk in higher-yielding areas such as consumer finance, cards, auto, housing, and SMEs.
Issuer Reports
Current public reports for this issuer.