Security Bank gets BSP nod to open 50 new branches

MANILA, Philippines - The Security Banking Corp. (Security Bank) is looking for 50 new branch sites within Metro Manila after it got the nod from the Bangko Sentral ng Pilipinas (BSP) for 50 new licenses.

“In addition, we shall be applying for and opening, when approved, new branches in the non-restricted areas – mostly in the provincial areas,” Alberto S. Villarosa, Security Bank president and chief executive officer, said.

However, the bank is required to use all 50 licenses by 2014. That would mean an average of roughly 15 new branches every year, starting 2012.

Security Bank presently operates 136 branches, and would soon get hold of the 38 branches of Premiere Development Bank, which it acquired in June last year. Last Jan. 20, the Monetary Board of the BSP approved the acquisition includ- ing the P1.3-billion equity investment Security Bank raised to acquired 96.42 percent of Premiere Development Bank’s outstanding shares.

“The BSP approval we got for the Premiere (Development Bank) acquisi- tion likewise carried an approval for the thrift bank to relocate 10 of their non-restricted” (locations outside Metro Manila) branches to the restricted ar- eas,” Villarosa added.

In short, Security Bank could have 60 new branches within Metro Manila or an estimated total of 224 branches by 2014.

Security Bank would retain the thrift bank license of the acquired Premiere Development Bank.

Villarosa explained that thrift banks have a lower reserve requirement com- pared with a universal bank (eight percent versus 21 percent).

“Also, by retaining it as a separate subsidiary, our branch expansion plans can be further increased and differenti- ated by allowing branches of Security Bank and Premiere Development Bank to be positioned to cater to different market niches,” he added.

The medium-sized commercial bank made the first-time bank acquisition last June in a bid to increase its presence in deposit/loan-rich Metro Manila.