Security Bank closes acquisition of Home Credit stake

Security Bank Corp. has completed its acquisition of a 25-percent stake in Home Credit Philippines in a P10.36-billion deal with Japan’s MUFG Bank Ltd.

The move is seen to unlock opportunities for Security Bank to widen its footprint in the consumer lending space.

Meanwhile, Thailand-based Krungsri (Bank of Ayudhya PCL and its business units), a subsidiary of MUFG, will keep a 75-percent ownership in HC Consumer Finance Philippines Inc.

“This strategic investment enables us to deepen our participation in the fast-growing consumer finance space and unlock new opportunities to better serve the evolving financial needs of Filipinos,” Security Bank president and CEO Sanjiv Vohra said in a statement on Friday.

“We see strong potential in this partnership to create long-term value through complementary strengths, accelerating innovation in lending solutions and advancing financial inclusion,” Vohra added.

In pursuing this deal, Security Bank will have access to Home Credit’s 11 million customers, as well as its financial products, including cash loans, revolving credit and ancillary services like insurance and warranty offerings.

Strong local footprint

It is present across 15,000 locations nationwide through its partnerships with top retailers and brands under its point-of-sale financing services.

For its part, MUFG said Security Bank’s “strong local footprint, deep market insights and commitment to financial innovation” would complement Krungsri’s regional capabilities.

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Security Bank last year booked record-high earnings of P11.2 billion, a 23-percent surge due to strong revenues.

Net interest income likewise swelled by 26 percent to P43.7 billion.

At the same time, net loans reached P678 million, up by 26 percent, driven by lending to micro, small and medium enterprises (MSMEs) and retail customers. Combined, these segments posted a 37-percent growth.

Security Bank chief financial officer Eduardo Olves previously said they were banking on retail clients and MSMEs to drive loan growth this year, although at a slower pace.