Security Bank maps out plans following BTMU partnership

CEBU, Philippines - Increased credit coverage for Small and Medium Enterprises (SMEs), nationwide branch network expansion are among the plans Security Bank has on the drawing board following its strategic partnership with Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU).

Security Bank president and chief executive officer (CEO) Alfonso L. Salcedo said, during the bank's recent client appreciation event in Cebu held at the Waterfront Cebu Hotel and Casino, the bank is sensitive on the clients' need for more credit facilities.

Over the years, 37 percent to 38 percent of the bank's loan portfolio is covered by SME loans in all flavors. This is expected to expand further in terms of coverage in the next few years.

Cebu in particular will expect much aggressive penetration in its retail business footprint,  which include consumer loans, as well as SME credit facilities.

 From 292 branches across the Philippines, the bank aims at adding 30 branches in the next two years, at least four more branches will be added in Cebu within the period, said Security Bank executive vice president Leslie Chan.

 The bank is looking at making presence in other areas in Metro Cebu, as well as Danao, Minglanilla, Mactan Export Zone and Toledo.

 Other target expansion sites in the Visayas are Tagbilaran City in Bohol, Ilolio and Boracay in Panay Island, Dumaguete in Negros Oriental, and Kabankalan and Calbayog in the Western part of Visayas.

  Security Bank's strategic alliance with Japanese financial institution is also seen to strengthen its client grip among the Japanese companies operating the Philippines, large part of which are located in economic zones, like in Mactan Expory Zones 1 and 2 in Cebu, Cebu West Industrial Park in Balamban, Mitsumi in Danao, among others.

  According to Salcedo, in the Visayas alone, there are a lot of Japanese firms operating in the region, employing thousands of people. "This is a new segment that Security Bank has not penetrated in a substantive way."

 Historically, Security Bank is strong among the Fil-Chinese community across the country. With its partnership with BTMU, it expects to gain major foothold in the Japanese companies' ecosystem in the Philippines, said Salcedo.

 BTMU added an actual infusion of P37 billion to Security Bank's capitalization, making the bank the fifth largest capitalized bank in the country today.

"We hope to accelerate the growth of our retail banking business as well as better coverage of the SME sector. With BTMU’s expertise in project finance, we expect to participate more actively in PPP and infrastructure projects. Additionally, in partnership with BTMU, Security Bank will be able to penetrate the Japanese business community,” added Salcedo.

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a member of Mitsubishi UFJ Financial Group, Inc. (MUFG), is Japan’s premier bank, which has a global network spanning close to 50 countries and offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide. MUFG is one of the world’s leading financial groups with key strengths in commercial banking, trust banking, securities, credit cards, consumer finance, asset management and leasing. (FREEMAN)