Security Bank, Marubeni to put up leasing firm
MANILA, Philippines – Security Bank Corp. has sealed a joint venture agreement with Japanese firm Marubeni Corp. to put up a leasing company, a move corporate officials said was consistent with the bank’s expansion mode, company officials announced on Tuesday.
Under the agreement, Security Finance Inc., the wholly owned subsidiary of Security Bank that is engaged leasing and consumer lending, shall be renamed and shall have Marubeni as part owner.
In particular, Security Bank shall own 60 percent, while Marubeni shall own 40 percent of the soon-to-be-established leasing firm.
The new firm shall engage primarily in the leasing of construction equipment, trucks, and buses, among others.
The joint venture was announced on Tuesday during the annual stockholders’ meeting of Security Bank held at its main office in Makati City.
“We are optimistic that this joint venture shall bring in new clients, provide opportunities for bundling various services, expand our product line and loan portfolio, and create value for the shareholders,” Security Bank president and chief executive officer Alberto Villarosa said on Tuesday during the bank’s stockholders’ meeting.
Marubeni, which is engaged in various businesses, already has a leasing business in Indonesia and United Kingdom.
Besides being engaged in leasing, Marubeni is present in various sectors, including infrastructure, power, real estate, information technology, finance, and management, among others.
Security Bank is one of the key players in the Philippine banking sector. As of the end of 2010, Security Bank ranked 12th among the biggest banks in the country in terms of assets. It assets stood at P166.6 billion.
Its net income in 2010 hit P7.1 billion, registering a 134-percent rise from P3.06 billion in the previous year. The profit growth was driven by gains from its trading operations.
Its loan portfolio stood at P74.5 billion, growing by 6.5 percent from P69.9 billion over the same period.
Loans growth was supported by the increase in bank deposits. Deposit base stood at P110.59 billion, rising by 1.9 percent from the previous year’s P108.56 billion.
In an ambush interview with reporters following the stockholders’ meeting, Villarosa said Security Bank has been in an expansion mode, targeting to put up around 10 branches over the short term.
He said most of these branches would be put up in the Visayas and Mindanao, noting the restrictions currently imposed by the Bangko Sentral ng Pilipinas on branching in Metro Manila. Villarosa said expanding presence outside Luzon has been aimed at taking advantage of growth opportunities in other parts of the country.
“We plan to put up a good number of branches in provincial areas,” Villarosa said.
Security Bank currently has 130 branches and 190 automated teller machines nationwide.
