Security Bank Targets PSEi Re-entry with Three-Year Growth Plan

MANILA, Philippines — Security Bank Corp. is setting its sights on a return to the benchmark Philippine Stock Exchange Index (PSEi) as it embarks on a three-year plan aimed at delivering stronger and more consistent returns. A successful comeback would mark Security Bank’s return to the PSEi for the first time since August 2022, when Semirara Mining and Power Corp. took its place in the 30-member benchmark. READ: Security Bank maps out 3-year growth push On Thursday, Security Bank president and CEO Victor Lee said the bank must first strengthen its financial performance to regain investor confidence, with a return to double-digit return on equity (ROE) targeted by the end of 2027. The bank last achieved an ROE of at least 10 percent in 2017, according to Lee. “For me, three years is enough time to turn this business around toward a double-digit return,” Lee said. Security Bank is ultimately targeting an ROE of 12 percent by 2029, up from the current 8-percent level. Lee said stronger profitability could help improve the bank’s valuation and, eventually, its chances of rejoining the PSEi. “It’s imperative for us to deliver those double-digit returns moving into next year. And if we are able to do that, I think investor confidence will come back,” he said. “If our price-to-book ratio just doubles from 0.3 to 0.6, then we are seeing our share price double. And that will give us a good chance to get back in,” he added. John David Yap, executive vice president and chief financial officer of Security Bank, said the firm is also targeting a return on assets of 1.7 percent by 2029 from one percent currently. Its cost-to-income ratio is expected to decline to 51 percent from 58.5 percent, while credit cost is targeted to improve to around 140 basis points from 180 basis points. At the same time, Security Bank plans to maintain its common equity tier 1 ratio at around 12.5 percent to 13 percent. Yap said the targets were based on an “all-weather” plan that assumes a similar or challenging macroeconomic environment, leaving room for upside should economic conditions improve. To reach these goals, Security Bank is sharpening its focus on three segments—wealth, entrepreneur banking and corporate and institutional banking. READ: Security Bank H1 profit rises 4% to P6.1B The bank has already expanded significantly over the past decade. Loans reached P697 billion in 2025, or 2.4 times their 2016 level, while deposits grew 2.7 times to P931 billion. Equity increased 1.6 times to P154 billion. Its wealth assets under management ballooned 14-fold from P40 billion in 2017 to P560 billion in 2025. Project finance loans climbed to P76.2 billion in 2025 from P53 billion a year earlier, while trade loans reached P33.8 billion.