Security Bank, Mitsubishi Motors to put up auto financing company
MANILA, Philippines — Security Bank Corp. of banking tycoon Frederick Dy will soon form a company offering auto financial services with Japan-based automobile giant Mitsubishi Motors Corp. amid a rapid growth in the local new car market.
In a stock exchange filing on Monday, Security Bank said it would hold a 49-percent ownership stake in Mitsubishi Motors Finance Philippines Inc., while Mitsubishi will be the majority owner with a 51-percent stake.
“By combining the strengths of both Mitsubishi Motors and Security Bank through this new company, we are in the best position to offer enhanced auto financing services to match our customers’ needs,” said Sanjiv Vohra, Security Bank president and CEO.
Security Bank pointed out that the new car market is expected to grow further in the medium-term due to the country’s increasing population.
A joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers association released last month showed that a total of 72,132 new vehicle units were sold in February alone.
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This represents a 20-percent increase compared with the 60,404 units sold in February 2023.
“Financing services are essential for customers in the country, given mostly rely on financing when buying cars,” Security Bank said, noting that it will offer “a range of sales financing services” with Mitsubishi.
Security Bank, the country’s eighth largest bank in terms of assets, also recently partnered with Mitsubishi UFJ Financial Group (MUFG) Bank to promote business opportunities between Philippine and Japanese companies, hoping to attract new investors from Japan.
In 2023, Security Bank saw its earnings dip by 13.74 percent to P9.1 billion on higher expenses.
