Security Bank Corporation (PSE: SECB), a leading Philippine universal bank, has announced that it has entered into an agreement to acquire a 25% stake in HC Consumer Finance Philippines, Inc. (HCPH), also known as Home Credit Philippines, the country’s premier consumer financing company. This strategic move underscores Security Bank’s commitment to enhancing its consumer finance capabilities and expanding its market presence.
Security Bank will purchase the 25% ownership stake in HCPH from MUFG Bank Ltd. for approximately PHP11 billion. Krungsri (Bank of Ayudhya PCL and its business units) will continue to hold a 75% ownership stake in HCPH and remain the majority shareholder.
Home Credit is a leading consumer financing company in the Philippines, having served over 11 million customers with a comprehensive range of financial products, including point-of-sale (POS) loans, cash loans, revolving credit, and ancillary products such as insurance and warranty services. Home Credit is a POS market leader with strong partnerships with top retailers and brands and a nationwide presence covering more than 15,000 POS locations.
“As we welcome Home Credit into the Security Bank family, we’re excited by the strategic benefits this acquisition brings,” stated Sanjiv Vohra, Security Bank President and CEO. He added, “This is a tremendous opportunity to leverage synergies, offer innovative lending solutions, and support financial inclusion. We look forward to driving growth and delivering value to our stakeholders together.”
“We are delighted to enter into this agreement with Security Bank as we believe that Security Bank will complement Krungsri in Home Credit Philippines,” said Yasushi Itagaki, Group COO-I and Head of Global Commercial Banking Business. “Security Bank’s on-the-ground presence and understanding of the local market will bring forth continued growth for Home Credit Philippines,” he added.
This transaction marks eight years of the Security Bank and MUFG strategic alliance, which started in 2016. It also represents the second partnership between Security Bank and Krungsri, following their SB Finance, Inc. joint venture. The acquisition aligns with Security Bank’s strategic vision to become the most customer-centric bank in the Philippines.
The transaction is subject to regulatory approvals, with target closing in the first quarter of 2025. AlphaPrimus Advisors acted as financial advisor and Picazo Law acted as legal counsel to Security Bank in this transaction.