Security Bank Corporation has a proud history of financial management expertise, with a proven track record of stability and consistent profitability achieved through an efficient, perceptive and forward-thinking management style. The Bank stands firm on a solid reputation as one of the Philippines’ top ten private domestic universal banks in terms of assets, deposits, capital and return on equity.
Established on June 18, 1951 as Security Bank and Trust Company (SBTC), it was the first private Filipino-controlled bank in the Philippines during the Post-World War II period and has since evolved to become one of the country’s most stable and best managed financial institutions, with more than six decades of corporate success.
From its first corporate headquarters in Plaza Goiti, the Bank steadily moved with the brisk pace of economic growth that characterized the 1950s. Three years later, the corporate headquarters moved to Escolta, at the nation’s pre-eminent business district.
Towards the end of the 1950s, Security Bank expanded its business reach by setting up branches in various parts of Manila with such aggressiveness that at one point in time, the bank had more branches in the metropolis than any other bank in the country.
The 60s was marked by rapid expansion of the Bank’s branch network for a broader, countrywide reach with the opening of its first provincial branch in Angeles, Pampanga. Throughout the decade, branches were established in various parts of the Visayas and Mindanao.
It was also in the 60s that the Bank led a consortium of local and foreign banks that provided a US$ 62-million syndicated loan to the Lopez family for the acquisition of the Manila Electric Company – the first deal of its kind in the Philippine banking industry.
It was during the 70s that Security Bank laid the foundation for a culture of innovation in product development. This period saw the diversification of its services with the introduction of Diners Club, the first credit card franchise in the Philippines. The Bank also introduced to the market innovative trust products and services that served as forerunners of today’s pre-need and common-trust plans. Other banks eventually followed suit and created similar products.
As the decade closed, Central Bank granted it permission to operate a Foreign Currency Deposit Unit, giving the Bank increased flexibility in the foreign currency system.
The 1980s was a time for increased investment banking activities where the Bank won deals with top players in the private and public sector. By the mid-80s, the political turmoil and resulting economic downturn that characterized that era in the country’s history proved to be a severe test of the Philippine banking system’s resiliency.
Security Bank was not spared from these trials but prevailed alongside the other stronger banks, overcoming the combined ill effects of the political and economic situation of that turbulent era.
As the last decade of the 20th century began, new majority owners led by Frederick Y. Dy assumed control of Security Bank and Trust Company in 1991, infusing fresh directions for the Bank.
In April 1994, the Bangko Sentral ng Pilipinas granted SBTC a universal banking license, allowing it to expand its financial services and revenue sources. Along with an expanded corporate charter, it changed its named to SECURITY BANK CORPORATION (SBC) and set up corporate headquarters at the center of the Makati financial and business district along Ayala Avenue. The new building was named the Security Bank Centre, hailed for its functional design with modern, comfortable workspaces and cutting edge information and technology infrastructure.
In May 1995, SBC launched its Php 1.5-billion initial public offering. Its exceptional financial performance impressed both local and foreign investors, resulting in an oversubscription of the Bank’s stock offering as it was formally listed under the ticker symbol SECB in the Philippine Stock Exchange on June 8, 1995.
SBC, at this point in its corporate history, effectively established itself as the country’s fastest growing mid-sized universal bank.
Through the 90s, SBC remained consistently profitable year after year despite the new round of economic difficulties that plagued Philippine business as a result of the Asian economic meltdown in mid-1997. It thrived in this daunting crisis through the practice of prudent management and conservative lending, considerably less plagued by credit losses and problem loans than many of its larger competitors.
SBC ended the century by embarking on a long-term program anchored on the smarter use of technology and hiring the best and the brightest in their fields to reshape the Bank as a real force to reckon with in Philippine banking.
On June 18, 2001, SBC celebrated 50 years of banking in the Philippines, as it continued to live a tradition of banking excellence. Today, it remains one of the best managed banks in the industry and has one of the lowest non-performing loan (NPL) ratios among its peers. The Bank’s innovative and customer-focused approach to managing business has no doubt contributed to its financial strength.
It has kept in step with the fast changing world under the leadership of a strong team of top-caliber banking professionals. The Bank shifted to higher gear to focus on technological advancements, improve its ability to build its businesses and generate lasting value for its customers, employees and stockholders.
In February 2012, the bank acquired a thrift bank, Premiere Development Bank, and renamed it Security Bank Savings to further expand the bank’s distribution reach nationwide and serve the needs of the consumer finance, small and mid-sized market segments.
Committed to continuously provide exceptional value to its clients and stakeholders, SBC has been acclaimed with awards and recognition from international and local organizations for product innovation, market leadership, and best-of-class management practices. The Bank joined an elite circle of the world’s top financial institutions recognized for global banking excellence when it received two of the most prestigious global banking awards in 2012 as Bank of the Year – Philippines by The Banker of the Financial Times of London; and the Strongest Bank in the Philippines by The Asian Banker of Singapore. These awards validate the legacy of excellence that was started over 60 years ago.
Customers who value SBC’s distinctive service style, characterized by a combination of professional competence, skilled efficiency and excellent customer care, enjoy a lasting and strong relationship with the Bank.
With a strong, corporate-wide team effort to manage productivity, relationships and risks, Security Bankers work together to drive excellence in products and customer service, keeping the legacy alive.
The Bank is committed to support various educational and livelihood activities, disaster relief operations and other sustainable programs as part of its corporate social responsibility through Security Bank Foundation, Inc. (SBFI). SBFI’s initiatives promote deeper engagement among SBC employees and encourage active involvement in creating positive changes in society.
Security Bank keeps the fire of its rich heritage burning with the reassurance of continued stability, trust and reliability as an institution that remains strong, relevant and flexible to the needs of the times and an active participant in nation building.