MANILA, Philippines - Security Banking Corp. has acquired thrift bank Premiere Development Bank for P1.3 billion.
Security Bank president and chief executive officer Alberto S. Villarosa said the acquisition is part of its strategic plan of growing organically or through acquisition, as well as expand its loan portfolio and customer base.
Likewise, South China Resources Inc. also sold its 351,454 shares in Premiere Bank at P181.7458 apiece. Edgardo Reyes, the bank’s chairman, also sold 56,000 shares under his name.
The deal marks the first acquisition by the 60-year old universal bank.
Security Bank, the country’s first all-Filipino bank, opened its first provincial branch in Angeles, Pampanga.
Security Bank has a loan portfolio at P3 billion from 20,000 borrowers. It has a deposit base worth P4.5 billion from 37,000 depositors. Premier Bank’s loan portfolio, meanwhile, of nearly P2 billion, is focused on small and medium enterprises and the consumer market.
Presently, Security Bank operates 132 branches and would rise to 170 with the absorption of Premiere Bank’s 38 branches wherein 15 are located in Metro Manila, and the rest spread out in Bulacan, Rizal, Laguna, Cavite, and Batangas. The medium-sized universal bank has already applied for five new branch licenses and has likewise identified another five proposed branch sites.
“The purchase of Premiere Bank would immediately expand our branch network by 30 percent to 170 branches, and effectively increase our presence and competitive stance in the consumer and SME business segments,” Villarosa said.
Premiere Bank has a capital base of P769 million as of March 2011.
Security Bank runs 195 automated teller machines (ATMs) under the BancNet consortium while Premiere Bank has 40 under Megalink.
Last Tuesday, Security Bank entered into a joint venture with Marubeni Corp. of Japan to form a leasing company with an initial capital of P200 million. The new leasing company will be owned 60 percent by Security Bank and 40 percent by Marubeni Corp.
Last year, Security Bank reported a 134-percent growth in net income to P7.2 billion from P3.06 billion in 2009, and a return on equity (ROE) of 35 percent.
Total revenues rose to P12.9 billion. The growth in core revenues was significantly enhanced by the P4.8-billion in trading and securities gains recorded for the year.