Security Bank unfazed by election uncertainty
MANILA, Philippines – The local banking scene will continue to be bullish regardless of who will be elected as the new Philippine president in May.
This was the statement of Alfonso Salcedo Jr, president and CEO of Security Bank Corporation, in a media briefing in Makati City on Tuesday, April 26.
"I never felt any of our clients to hold back or to indicate to us that they will abort expansion plans if candidate A, B, C or D wins. Middle market has really been politically agnostic," Salcedo said.
There are only two weeks left before the May 9 elections – where Filipinos have to choose among presidential candidates Vice President Jejomar Binay, Davao City Mayor Rodrigo Duterte, Senator Grace Poe, former interior secretary Manuel Roxas II, and Senator Miriam Defensor Santiago.
More concerned about demand
Blocking out the noise of the campaign period and looking closer at the demand of local financial services, Security Bank chairman Alberto Villarosa said his bank is "very bullish for the country and its business prospects even after the 2016 national elections."
"We believe that all of them in general are pro-business and it's in the degree in which they will execute their plans for the republic, for the country," Villarosa said.
"Market has really been politically agnostic. They don't really care. They are more concerned about the demand," Salcedo added.
In 2015, Security Bank saw its net income surge to P7.7 billion, translating to a 15.2% return on shareholders' equity.
Core revenue increased by 15% to P15.5 billion, including P2.1 billion earned from the sale of investment securities.
Security Bank even plans to expand its footprint, starting with a new branch in Calamba, Laguna.
On April 1, the bank received P36.9 billion from the Bank of Tokyo-Mitsubishi UFJ, Limited (BTMU), finalizing the strategic partnership deal they inked last January.
Salcedo said Security Bank has identified 5 export processing zones where most clients of BTMU are located, but declined to disclose further details.
With total assets increasing 34% to P532 billion, Security Bank said it moved up to become the 5th largest private domestic universal bank at the end of 2015, from 8th largest in 2014.
The bank plans to have 500 to 600 branches by 2020. – Rappler.com