The nation’s business community, hungry for some good news, finally received a much-needed boost when it was announced that The Bank of Tokyo-Mitsubishi UFJ, said to be Japan’s largest bank, is entering into a strategic partnership Security Bank Corp.
The partnership, which will see BTMU investing around P37 billion for a 20 percent stake in Security Bank, is said to be the biggest equity investment in a Philippine financial institution by a foreign investor.
Since BTMU will acquire newly issued primary shares, this means that entire sum of P37 billion goes to Security Bank’s coffers. The investment in newly issued common and preferred shares will ultimately make BTMU the second largest shareholder of Security Bank (the Dy family will remain the biggest shareholder of Security Bank) and will entitle the Japanese financial giant to two board seats in Security Bank.
So why is BTMU investing in Security Bank in the first place.
It was revealed that BTMU is looking to establish a comprehensive financial service platform that will include retail banking service for its clients’ needs in the Philippines. It also hopes to expand its business platform indirectly, especially after factoring in the fast growth of the Philippine market and the attractive fundamentals of the country’s macro economy.
At the sidelines of their joint press conference last week, Security Bank president Yogi Salcedo described the partnership as one that would enhance Security Bank’s shareholder value by accelerating its growth strategy, including expansion of its branch network and increasing its penetration of the retail market.
On the aspect of expansion, we’ve learned that Security Bank will now be able to accelerate the growth of its branch network to support retail, middle market and SME penetration, and grow low-cost funding base. And they are looking at establishing some 500 to 600 branches by 2020 in deposit-rich, high-business markets.
BTMU’s investment will also allow Security Bank to embark on the transformation of its information technology systems to provide highly differentiated customer experience and support accelerated growth of the three business pillars – retail banking, wholesale banking and financial markets.
Then you have the growth of its loan portfolio which would ultimately benefit the middle market like SMEs and the retail banking sector.
It is likewise expected that Security Bank will leverage a slew of substantial synergies, tapping into BTMU’s relationship network with the Japanese corporates, its global network and diverse range of functions and expertise.
As for BTMU, the latter stressed that it has been focusing on Asia as one of its core markets for growth and is looking for the right partner in higher growth markets like the Philippines to establish a significantly deeper presence, even through inorganic means.
Most notable about this deal is that it will position Security Bank as a large independent bank better poised to support the growth of the Philippines’ economy with the resources and capabilities to compete against larger financial institutions.
There is little doubt that this deal between Security Bank and BTMU is a win-win for both parties’ customers.
Immediately, there are synergies Security Bank and BTMU will enjoy, like driving the LC business of BTMU to Security Bank, the prospects of cross-sell retail banking services, opportunities for cash management arrangements for Japanese corporates and their supplier/distributor communities and even leveraging on BTMU’s expertise and long-term funding capabilities in project finance.
Congratulations to chairman Abet Villarosa, president Yogi Salcedo, and their team at Security Bank. This new partnership with BTMU bodes well for our country’s image and reputation as an investment haven for those looking to establish themselves in this developing market.
Is he or isn’t he
A concerned citizen has filed a case for perjury, misconduct, and dishonesty against his punong barangay.
Dietmar Lee Romualdez (aka Dietmar Fitzgerald), incumbent barangay captain of Barangay Dela Paz in Pasig City, was accused before the Office of the Ombudsman of committing the crime of perjury for knowingly making untruthful statements under oath in his certificate of candidacy filed on Oct. 14, 2013 before the Commission on Elections for the position of punong barangay that he is a Filipino citizen, that he is not a permanent resident or an immigrant to a foreign country, and that he is eligible for the office he seeks to be elected to. Romualdez was duly elected as punong barangay during the Oct. 28, 2013 barangay elections.
In his complaint affidavit, Rodrigo de Guia also accused Romualdez of being administratively liable for grave misconduct and gross dishonesty relative to his perjurious acts, which is punishable by dismissal from public service.
According to De Guia, he discovered that Romualdez is a holder of an Australian passport which based on Bureau of Immigration records he has been using since as early as Dec. 2005 until as recent as August 2015 according to his travel records.
He also noted that Romualdez, probably to conceal his true citizenship or even identity, used the name Dietmar Fitzgerald in his Australian passport. De Guia said he compared the pictures and all the information provided in the certificate of candidacy and the passport, such as date of birth, place of birth, etc., and it is obvious that Romualdez and Fitzgerald are one and the same person.
De Guia asked that Romualdez be preventively suspended pending the disposition of the complaint.
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