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Business

Security Bank strengthens retail expertise with BTMU on board

Ted P. Torres - The Philippine Star

MANILA, Philippines – The entry of Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) into Security Bank Corp., the largest equity infusion in a Philippine financial institution by a global powerhouse, opens more opportunities to strengthen the local bank’s presence in the retail market, a top bank official said.

“BTMU investments will bring to Security Bank global expertise, global best practices, global standards in operations, control, and governance, risk and compliance, and participation in cross-border loans formerly unheard of the bank,” Alfonso L. Salcedo Jr., Security Bank president and chief executive officer said in a press briefing shortly after the bank’s annual stockholders meeting yesterday.

In January, BTMU acquired 20-percent stake in Security Bank, entitling Japan’s largest bank two board seats in the Philippine commercial bank.

Since 1977, BTMU runs a Philippine branch with a capital base of over P4.5 billion.

The branch deals with Philippine conglomerates and Japanese corporates. Out of the 1,200 Japanese locators and businesses, the BTMU branch already services 700 which means Security Bank can still go after the remaining 500.

“And whatever BTMU Philippine branch cannot handle from their 700 Japanese clients, especially in the retail side, Security Bank can come in,” Salcedo said.

That is aside from Security Bank’s regular core business of deposit-taking and extending loans.

Last year, the bank reported a record net income of P7.7 billion and total assets worth P532 billion, fifth largest among private local universal banks.

Loans ballooned 24 percent to P240 billion. Consumer loans expanded a whopping 68 percent while wholesale lending kept pace by 24 percent.

Deposits grew 17 percent to P290 billion.

Salcedo said asset quality vastly improved with net non-performing loan (NPL) ratio, at 0.14 percent, lower than the 0.28 percent in 2014.

 “Security Bank is now a stronger local bank with a global network with BTMU,” he said.

Joining the Security Bank’s 12-board members are Takayoshi Futae, managing executive officer in charge of Japanese credit of the BTMU, and Takahiro Onishi, as executive vice president in charge of growth in business collaborative initiatives.

BTMU said that it wants to help Security Bank become a Tier 1 bank, and top five among all banks in the Philippines.

 

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