Business Operations

Underlining its value to the Philippine market, Security Bank is an independent bank with core businesses in Wholesale Banking, Retail Banking and Financial Markets, with a solid niche among the mass affluent Filipino-Chinese community. The advantage of being an independent bank is that customers get comfort in the fact that Security Bank does not compete with any of their businesses.

The Bank’s three core businesses are managed separately to focus on their respective markets and they operate with a high degree of synergy among each other.

  • Wholesale Banking comprises two groups: Corporate & Investment Banking, which focuses on the top 1,000 corporates, institutional and public sector markets; and Commercial Middle Market Banking which focuses on the middle markets and small-and-medium enterprises.
  • Retail Banking focuses on the individual and retail markets, providing deposit-taking and servicing, mortgage, auto, personal loans and small business loans, and credit card facilities.
  • Financial Markets focuses on providing money market, foreign exchange, financial derivatives, securities distribution, asset management, trust and fiduciary services.

Security Bank is driven by superior customer service and profitability first and foremost, not by size or market share. Security Bank will pursue build-up in market share only if it increases profitability and shareholder value.

Security Bank is the 5th largest in total assets among private domestic universal banks in the country, with total assets of Php 757Bn; 6th largest in loans, with loan portfolio of Php 370Bn; and 5th largest in capital, with capital of Php 105Bn as of December 31, 2017.

The Bank is known among investors for its superior financial results. In eight of the last 11 years (2007 to 2017), Security Bank has delivered superior returns on shareholders’ equity (ROE), cost efficiency (cost-to-income ratio) and asset quality. During 2007-2012, and 2014 and 2015, Security Bank ranked 1st in return on shareholders’ equity, 1st in return on assets, 1st in cost-to-income ratio, 1st in asset quality (having the lowest non-performing loans ratio) and 1st in NPL reserve cover ratio, among private domestic universal banks.

It is this track record of superior results that attracted Mitsubishi UFJ Financial Group, Inc. (MUFG) to invest Php37 billion in equity capital for a 20% stake in Security Bank in 2016. To date, this is the largest equity investment in a Philippine financial institution by a foreign investor. Security Bank is elated to work with MUFG because the two banks share the same values of integrity, professionalism and teamwork.

Security Bank has invested and continues to invest in the expansion of its retail banking business and distribution channels (i.e., branch network, digital channels and alternative channels) to drive future revenues. The Bank’s strategy, execution and results are guided by its strong focus on customer relationships, service quality and shareholder value.

Security Bank found from its market research and focused group discussions several years ago that there was a clear need in the customer market for better-quality banking services. Customers were not happy with the quality of service from their banks. Thus, the BetterBanking commitment was born.

BetterBanking is about knowing in-depth the customers’ needs and circumstances, and then servicing them and providing solutions in a professional, problem-free, personalized and prompt mannerthe four P’sof BetterBanking. The Bank is working to consistently deliver to customers the BetterBanking experience in any branch and access channel they use. Now, Security Bank customers enjoy enhancements in services including faster and paperless branch transactions, priority banking and digital banking. These have benefited both the older-generation customers who still like to do face-to-face banking with the Bank, and the younger-generation customers who like to do things online. The quality of Security Bank’s services and results is shown in the awards it has received, highlighted by our Bank of the Year-Philippines awards from The Banker of London in three of the last five years (2016, 2015 and 2012).

Security Bank has a total network of 302 branches and 713 ATMs as of December 31, 2017.

As a full-service universal bank, Security Bank has subsidiaries and affiliates that provide specialized financial services.

  • SB Finance Company, Inc., formerly Security Bank Savings (Premiere Development Bank which was acquired by Security Bank in early 2012 and was re-branded as such). SB Finance will engage in the business of financing and will cater to the mass-market segments. This is Security Bank’s response to the government’s call for financial inclusion.
  • SB Cards, a credit card company which was a pioneer in the Philippine credit card industry.
  • SB Capital, an investment house providing investment banking services to our corporate customers.
  • SB Equities, a stock brokerage company, one of the top domestic brokerages in the country.
  • SBM Leasing, a 60:40 joint venture with Japan’s Marubeni Corporation, which specializes in heavy equipment leasing.
  • SB Rental Corporation, which is engaged in the business of renting and leasing.

In February 2015, Security Bank launched the Bancassurance product in partnership with FWD Life, adding to the robustness of the Bank’s financial services offering.

The strength of Security Bank as a business enterprise lies in its core operating disciplines and track record as follows:

  • Core franchise strength
  • Stable funding sources and pro-active capital management
  • Industry-leading asset quality
  • Strong, experienced management team
  • Multi-awarded and well-recognized brand
  • Strategy for sustainable growth

The Bank’s strong balance sheet, asset quality, consistent profitability and superior shareholder value are all under the prudent and forward-thinking stewardship of its Board of Directors led by Chairman Emeritus Frederick Y. Dy, Chairman Alberto S. Villarosa, and Vice Chairman Paul Y. Ung. Accompanied by a seasoned management team led by its President & Chief Executive Officer Alfonso L. Salcedo, Jr., with the team having more than 300 years of combined experience encompassing stints in top foreign and local banks, Security Bank will continue to focus on executing its goals in the years to come. The Bank’s vision is to be the most trusted and lifetime bank of its customers. When customers bank with Security Bank, they are not just banking with a strong local bank, they are also banking with a bank that can give them access to the products, services and network of a strong global financial group, MUFG.

Security Bank is a multi-awarded and well recognized brand. Security Bankers take pride in the fact that the Bank’s strategy, execution and results over the years have been recognized by reputable organizations and publications around the world.

Over and beyond the pre-eminent awards, the strongest testimonial comes from customers. Security Bankers take great pride in the fact that customers continue to trust the Bank to take care of their business and financial needs and well-being.

Security Bank’s strategy for sustainable growth is simple, and that is, it sticks to and further builds on its strengths and disciplines that have made it the strong, sound and well- managed Bank that it is today.

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