Security Bank goes for strategic expansion

On the heels of a partnership with a Japanese bank and an 11 percent rise in bottom line last year, Security Bank Corp. has embarked on a strategic expansion program in the Philippines.

The lender on Tuesday announced its net income rose to P7.7 billion year-on-year while fee-based income grew by 37 percent.

Core revenue increased by 15 percent to P15.5 billion, including P2.1 billion earned from the sale of investment securities.

The bank seeks to grow its footprint, starting with a new branch in Calamba, Laguna, President and CEO Alfonso L. Salcedo Jr. told reporters during a briefing in Makati City.

“This is the first of many in export processing zones. It will allow us to serve Japanese locators in these zones in a better way, and we’re doing this because of our BTMU partnership,” Salcedo said.

He said the bank has identified five export processing zones where most clients of partner The Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) are located.

In January, Security Bank sold a 20-percent equity stake to BTMU, the commercial banking unit of Mitsubishi UFJ Financial Group. The P36.9-billion deal was formally signed on April 1.

In light of the deal with BTMU, Security climbed to the top five Philippine banks in terms of assets.

“With total assets increasing 34 percent to P532 billion, Security Bank moved up to become the fifth largest private domestic universal bank at year-end 2015 from eighth largest in 2014,” the bank said in a separate statement.

The bank earlier said it plans to have 500 to 600 branches by 2020.

“A minimum of 20 branches this year,” Salcedo noted. “Blueprints puts about two-thirds of new branches in provincial areas, and one-third here in Metro Manila. We track where the growth is coming from,” he said.

“Security Bank is now a stronger local bank with a global network,” Salcedo note.d

The lender also said its board has approved listing 150.7 million newly-issued common shares on the Philippine Stock Exchange. – VDS, GMA News