Shareholder Information

Security Bank Corporation
Listed in Philippine Stock Exchange
Company Identifiers
PSE	SECB
Bloomberg	SECB.PM
Reuters	SECB PS
Issue Type	Common
ISIN	PHY7571C1000
Listing Date	June 8, 1995
Board Lot	10
Par Value	10.00
Outstanding Shares	753,538,887
Listed Shares	753,538,887
Issued Shares	753,538,887
Foreign Ownership Limit	40%

	STOCKHOLDER’S NAME	% to Total Common Shares
1	PCD NOMINEE CORP.	27.80%
2	PCD NOMINEE CORPORATION (NON-FILIPINO)	27.52%
3	THE BANK OF TOKYO MITSUBISHI UFJ, LTD.	20.00%
4	FREDERICK Y. DY	11.53%
5	ASIASEC EQUITIES  INC.	4.03%
6	SOCIAL SECURITY SYSTEM	3.73%
7	ANASTASIA Y. DY	1.93%
8	ASIASEC EQUITIES  INC.A/C# 1058	0.89%
9	GOODWOOD RESOURCES DEVELOPMENT INC	0.83%
10	SB EQUITIES  INC.	0.41%
11	JAMES HUNG	0.32%
12	ASI SECURITIES  INC.	0.20%
13	MEPCO EMPLOYEES RETIREMENT PLAN	0.04%
14	SAMANTHA MAE SZE	0.03%
15	RAFAEL F. SIMPAO, JR.	0.03%
16	SB EQUITIES  INC. FAO L0015	0.02%
17	CENTRAL COLLEGES OF THE PHILS.	0.02%
18	BEE BEE CHUA	0.02%
19	JAMES DY	0.02%
20	ELECTRONIC TELEPHONE SYSTEMS IND. INC.	0.02%

Note: Percentage as to the Total Outstanding Common Share
As of September 30, 2018

For Shareholder Information

Access our website https://www.securitybank.com for annual reports, quarterly results, financial highlights, company news and events.

For Shareholder Services

For inquiries regarding dividend payments, change of address and account status, lost or damaged stock certificates, please write or call:

Security Bank Corporation Office of the Corporate Secretary
8th Floor, Security Bank Centre Ayala Avenue, Makati City Tel. Nos. (632) 888-7335; (632) 888-7215 or

Stock Transfer Service, Inc
34th Floor, Rufino Pacific Tower 6748 Ayala Avenue, Makati City Tel. Nos. (632) 403-2410 to 12

For Investor Relations

Please email [email protected] or call (632) 888-7221.

For Customer and Service Provider Relations

Please email [email protected] or call (632) 887-9188.

For Governance Concerns

Please email [email protected] or call (632) 888-7303.

Declaration Date	Record Date	Payment Date	Regular	Special
30-Apr-02	11-Jun-02	5-Jul-02	0.10	–
29-Oct-02	5-Dec-02	8-Jan-03	0.10	–
20-May-03	1-Jul-03	25-Jul-03	0.15	–
30-Sep-03	20-Nov-03	16-Dec-03	0.15	–
30-Mar-04	31-May-04	24-Jun-04	0.20	–
28-Sep-04	5-Nov-04	2-Dec-04	0.30	–
25-Mar-05	8-Jun-05	4-Jul-05	0.25	0.25
30-Aug-05	24-Oct-05	22-Nov-05	0.25	0.25
28-Mar-06	24-May-06	20-Jun-06	0.25	0.50
29-Aug-06	25-Oct-06	21-Nov-06	0.25	0.50
24-Apr-07	28-Jun-07	24-Jul-07	0.25	0.75
21-Aug-07	29-Nov-07	27-Dec-07	0.25	0.75
25-Mar-08	11-Jun-08	7-Jul-08	0.25	1.00
25-Sep-08	27-Nov-08	23-Dec-08	0.25	0.50
31-Mar-09	8-Jun-09	3-Jul-09	0.25	0.50
26-Aug-09	18-Nov-09	12-Dec-09	0.25	0.75
23-Mar-10	26-May-10	22-Jun-10	0.25	0.75
19-Aug-10	22-Oct-10	19-Nov-10	0.25	0.75
29-Mar-11	6-Jun-11	1-Jul-11	0.50	0.50
27-Sep-11	9-Nov-11	6-Dec-11	0.50	0.50
26-Mar-12	11-May-12	6-Jun-12	0.50	0.50
4-Sep-12	17-Oct-12	14-Nov-12	0.50	0.50
19-Mar-13	15-May-13	10-Jun-13	0.50	0.50
24-Sep-13	29-Nov-13	27-Dec-13	0.50	0.50
25-Mar-14	7-May-14	2-Jun-14	0.50	0.50
19-Aug-14	15-Oct-14	10-Nov-14	0.50	0.50
24-Mar-15	03-Jun-15	30-Jun-15	0.50	0.50
24-Sep-15	27-Nov-15	10-Dec-15	0.50	0.50
26-Apr-16	11-May-16	26-May-16	0.50	0.50
25-Oct-16	10-Nov-16	24-Nov-16	0.50	0.50
25-Apr-17	11-May-17	25-May-17	1.00	0.50
27-Oct-17	17-Nov-17	24-Nov-17	1.00	0.50
27-Mar-18	13-Apr-18	26-Apr-18	1.00	0.50
30-Oct-18	19-Nov-18	29-Nov-18	1.00	0.50

What are the respective final withholding tax rates in the Philippines for cash dividends?

The final withholding tax rates prescribed under the Philippine National Internal Revenue Code (NIRC) are:

Taxpayer	Final Withholding Tax (FWT) Rate
A. Non-Resident Foreign Investor
Corporation	a. Thirty percent (30%) b. If the Tax Sparing requirement [under Section 28(B)(5)(b), NIRC] is complied with [i.e., that the country of residence of the Non-Resident Foreign Corporation (NRFC) allows a deemed paid tax credit of fifteen percent (15%) on taxes due from the NRFC]: Fifteen percent (15%); Refer below for the availment of Tax Treaty and Tax Exemption benefits
Individual	a. Engaged in trade or business in the Philippines – Twenty percent (20%) b. Not engaged in trade or business in the Philippines – Twenty-five (25%) Refer below for the availment of Tax Treaty and Tax Sparing benefits
B. Resident Foreign Investor
Corporation	Not subject to tax
Individual	Ten percent (10%)
C. Domestic Investor
Corporation	Not subject to tax
Individual Citizen	Ten percent (10%)

Are there Tax Reliefs available to non-resident foreign shareholders for income received thru dividends?

Yes. Non-resident foreign stockholders (individual or corporation) (see item A of Table above) may claim partial relief through tax treaties and tax sparing provisions, or exemption, see items 1 to 3 below.

Who can apply for Tax Treaty Benefits?

Non-resident foreign stockholders (individual or corporation) or their duly authorized representative who are income recipients from the Philippines and whose country of residence has an effective tax treaty with the Philippines. As of April 2017, the Philippines have effective tax treaties with the following countries:

Australia Austria Bahrain Bangladesh Belgium Brazil Canada China Czech Denmark Finland France Germany Hungary India Indonesia Israel Italy Japan Korea Kuwait

Malaysia Netherlands New Zeland Nigeria Norway Pakistan Poland Qatar Romania Singapore Spain Sweden Switzerland Thailand Turkey United Arab Emirates United Kingdom of Great Britain and Nothern Ireland United States of America Vietnam

What are the documents needed to apply for Tax Treaty Benefit?

Pursuant to Revenue Memorandum Order (RMO) No. 08-17 dated March 28, 2017 , a non-resident foreign individual or corporation must submit the following documents to SECB to enjoy tax treaty benefits:

1. 2 copies of duly accomplished BIR Certificate of Residence for Tax Treaty Relief (CORTT) Form
   The following rules shall be observed in accomplishing CORTT:

This is composed of two parts (as pre-numbered in the form):
Part I:

1. Applicable Tax Treaty;
2. Information of Income Recipient/Beneficial Owner (Individual);
3. Information of Income Recipient/Beneficial Owner (Non-Individual);
4. Certification of Competent Authority or Authorized Tax Office of Country of Residence*;

Part II:

1. Information of Withholding Agent/Income Payor;
2. Details of Withholding of Tax;
3. Type of Income Earned within the Philippines in Respect to which Relief is claimed;
4. Declaration of Income Recipient/Beneficial Owner; and
5. Declaration of Withholding Agent/ Income Payor.

Please refer to Annex B for the CORTT form.

2. Proof of Residency (Optional)

Original copy of consularized certification issued by the tax authority of the country of the income earner to the effect that such income earner is a resident of such country for purposes of the tax treaty being invoked in the tax year concerned. If this document is provided, Part I (D) of CORTT above need not be filled-up. This document shall be attached to the CORTT Form.

3. Consularized Indemnity Undertaking

Since the new procedure allows immediate availment of preferential rates subject to compliance check by the BIR, the non-resident investor is required to submit a Consularized Indemnity Undertaking in the event that SECB is assessed by the BIR during examination on account of stockholder’s failure to supply accurate and complete information in the CORTT Form. Please refer to Annex C for the prescribed form of the Indemnity Undertaking.

What are the rules to be observed by the stockholder in providing the documents?

The abovementioned documents must be provided by the stockholder to SECB within 5 banking days from divided record date. Failure to provide any of the documents will imply that the stockholder is not availing the tax treaty benefits and the dividends received will be subjected to 25% or 30% FWT, whichever is applicable.

What is the validity period of the CORTT provided by the stockholders to SECB?

The CORTT shall be valid only for 2 years from date of issuance, however, when the Proof of Residency of the country of residence is used, the date of validity of the latter document shall prevail.

If the CORTT will be used for another dividend payment within the validity period, the stockholders shall submit 2 original copies of updated part II of the CORTT within 5 banking days from dividend record date for continued enjoyment of treaty rates.

Who can apply for tax relief under the Tax Sparing provisions of the NIRC?

Any nonresident foreign corporation may be entitled to the 15% tax rate on dividend income as provided under Section 28(B)(5)(b) of the Tax Code.

What are the requirements for the availment of Tax Sparing?

Applicants must comply with Revenue Memorandum Circular No. 80-91 requiring the submission by the stockholder of documents showing the actual amount credited by the foreign government against the foreign income tax due from the Stockholder in respect of the dividends.

For non-resident foreign corporate stockholders whose country of domicile allows as credit for taxes deemed to have been paid in the Philippines equivalent to 15%, documentary requirements are as follows:

1. Proof of Residency of the Applicant (Consularized Articles of Incorporation or certification from the tax authority of its country of domicile).
2. Income Tax Return of the applicant for the taxable year the dividends were received.
3. Any authenticated document showing that the domicile country allows as a credit for taxes deemed to have paid in the Philippines equivalent to 15%, i.e. Internal Revenue Laws of domicile country.

For non-resident foreign corporate stockholders whose country of domicile does not impose tax on foreign sourced dividends, documentary requirements are as follows:

1. Proof of Residency of the Applicant (Consularized Articles of Incorporation or certification from the tax authority of its country of domicile).
2. Income Tax Return of the applicant for the taxable year the dividends were received.
3. Certification of the Tax Authorities of the domicile country stating that the said country does not impose taxes on foreign sourced individuals, or any authenticated document showing that the domicile country does not impose taxes on foreign sourced dividends.

The stockholder shall submit a certified true copy of the confirmatory ruling from the BIR that he is entitled to a 15% final withholding tax rate. If the stockholder is unable to submit a confirmatory ruling from the BIR within the prescribed period of submission, he shall submit a certified true copy of the duly received application for confirmatory ruling together with the Consularized Indemnity Undertaking in favor of SECB stating among other things that it shall indemnify SECB for any deficiency tax assessment relevant to the application of lower final withholding tax rate. Please refer to Annex D for the prescribed template of Indemnity Undertaking.

When and where to apply for Tax Sparing?

The documents required under Revenue Memorandum Circular No. 80-91 may only be provided after the payment of the dividends and the filing of its own income tax return in its country of residence. It is only upon presentation of those documents to the BIR that its entitlement to the tax sparing rate may be determined. The stockholder must submit to Security Bank proof of compliance with Revenue Memorandum Circular No. 80-91, including copies of documents provided to the BIR in connection therewith.

The certified true copy of confirmatory ruling from the BIR or the certified true copy of the application for confirmatory ruling together with the Consularized Indemnity Undertaking, as the case maybe shall be submitted within five banking days from dividend record date.

Who can avail of tax relief under the Tax Exemption provisions of the NIRC?

The following are exempt from withholding tax as provided in the NIRC or special laws:

1. Income derived by foreign government and financing institutions owned, controlled, or enjoying refinancing from foreign governments, and international or regional financial institutions established by foreign governments;
2. Income derived from any public utility or from the exercise of any essential governmental function accruing to the Government of the Philippines or to any of its political subdivisions thereof;
3. Entities enjoying exemption from payment of income taxes, such as entities registered with the BOI, Philippine Economic Zone Authority (PEZA) and Subic Bay Metropolitan Authority (SBMA), non-stock and non-profit corporations, general professional partnerships, and joint ventures under an energy service contract with the government.

What are the requirements for the application of tax exemption?

Any stockholder claiming exemption from withholding tax in accordance with any provision of the NIRC or special law shall be required to submit a certified true copy of a BIR ruling addressed to it confirming the exemption claimed pursuant to Revenue Memorandum Circular No. 8-2014.

For item a, in the absence of a BIR Ruling, the stockholder may still enjoy tax exemption provided, that he shall submit a certified true copy of the application for BIR Ruling and Consularized Indemnity Undertaking stating among other things that it shall indemnify SECB for any deficiency tax assessment relevant to non-withholding on the dividend payment. Please refer to Annex E for the prescribed template of Indemnity Undertaking.

Upon submission of the documents, the Applicant shall be entitled to receive the dividends without deduction for withholding tax. Failure to submit the required documents within five banking days from dividend record date would mean SECB will withhold and remit the taxes at the applicable withholding tax rates of 25% or 30% as applicable.

Are Brokers required to submit certain documents relevant to dividend payment?

The Brokers are required to submit to SECB through Stock Transfer, Inc. within five banking days from dividend record date Certifications stating among other things that they have applied the proper withholding tax rates on the dividends to be paid to their various clients and to hold SBC and Stock Transfer, Inc. free and harmless from related penalties and charges they may incur in connection with their reliance on the representations made by the Brokers. Please refer to Annex F for the prescribed template of the Certification.

What are the documents needed by SECB from Stock Transfer Service, Inc.?

1. For certificated accounts, forward the dividend register with proper tax tagging within three banking days from dividend record date;
2. For PCD accounts, forward the credit request letter and withholding tax summary report together with the relevant details within five banking days from dividend record date; and
3. Forward all Certifications and BIR Rulings (if any) to SECB within six banking days from dividend record date;

Please contact the following persons for further questions and clarifications:

STOCK TRANSFER SERVICE, INC. Mr. Richard Regala [email protected] Mr. Bryan Manuel [email protected] 34th Floor, Unit D, Rufino Pacific Tower 784 Ayala Avenue, Makati City Tel: (+632) 403-2410 ; 403-2412 Fax: (+632) 403-2414

SECURITY BANK CORPORATION Mr. Ropi Dangazo [email protected] Mr. Roland Ignatius Santos [email protected] 8th Floor, Security Bank Centre 6776 Ayala Avenue, Makati City Tel: (+632) 888-7221 ; 888-7175

Annex A – Comparison of the Old and New Practice for Availing Tax Treaty Rates for Dividends

Old Practice	New Practice
The nonresident must submit to BIR-ITAD three (3) copies of duly accomplished TTRA BIR Form 0901-D together with the following documents: Proof of Residency Articles of Incorporation Certification of Business Presence in the Philippines Certificate of No Pending Case	The nonresident must submit to their withholding agents/income payors either: Duly accomplished Certificate of Residence for Tax Treaty Relief (CORTT [Annex B]) Form, or Prescribed certificate of residency of their country of residence attached to the accomplished Part I (A, B and C) and II of CORTT before the non-resident receives the income.
The filing of TTRA is required 15 days BEFORE the transaction occurs and the availment of the preferential rates is subject to BIR approval thru issuance of a ruling.	Withholding agents/income payors can withhold a reduced rate or exempt the non-resident based on the CORTT form submitted to them, hence, the new RMO allows IMMEDIATE AVAILMENT of the preferential rates indicated in the CORTT to be included in the BIR Form No. 1601-F and 1604CF of the withholding agent subject to compliance check by the BIR. Thereafter, the CORTT will be submitted by the withholding agent to ITAD and RDO No. 39 within 30 days after payment of withholding taxes due on the income based on tax treaty rates.
The BIR ruling that will be issued by the BIR is valid only for the transaction covered, unless otherwise stated in the BIR Ruling.	For dividend income purposes, the CORTT Form shall be valid for two (2) years from date of issuance. If a prescribed certificate of residency of the country of residence is used, the date of the validity of such document will prevail over the 2-year period given.
–	The withholding agent shall submit an updated part II of the CORTT Form within 30 days after payment of withholding taxes due if the CORTT Form filed with ITAD and RDO No. 39 is used for another dividend payment within the prescribed period of validity.
Failure to obtain a ruling from the BIR would mean that the non-resident is not allowed to claim any tax treaty relief and therefore such income shall be subject to the normal rates provided under the Tax Code, as amended.	Failure to submit the duly accomplished CORTT form to the withholding agent/income payor would mean that the non-resident is not claiming any tax treaty relief and therefore such income shall be subject to the normal rates provided under the Tax Code, as amended.

Annex B – CORTT Form
Annex C – Indemnity Undertaking for CORTT Form
Annex D – Indemnity Undertaking for Tax Sparing
Annex E – Indemnity Undertaking for Tax Exemption
Annex F – Certification by Brokers