Security Bank, Mitsubishi tie up to help finance new car purchases

Tycoon Frederick Dy’s Security Bank Corp. is forming a venture with Japanese giant Mitsubishi Motors Corp. that will provide motor vehicle financial services amid the growing demand for new cars.

In a stock exchange filing on Monday, Security Bank said it would hold a 49-percent ownership stake in Mitsubishi Motors Finance Philippines Inc., while Mitsubishi will own the majority stake of 51 percent.

“By combining the strengths of both Mitsubishi Motors and Security Bank through this new company, we are in the best position to offer enhanced auto financing services to match our customers’ needs,” said Sanjiv Vohra, Security Bank president and CEO.

Security Bank pointed out that the new car market was expected to grow further in the medium-term due to the country’s increasing population.A joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association released last month showed that a total of 72,132 new vehicle units were sold in February alone.This represents a 20-percent increase compared with the 60,404 units sold in the same month last year.

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“Financing services are essential for customers in the country, given [that most] rely on financing when buying cars,” Security Bank said, adding the new company would offer “a range of sales financing services.”Security Bank, the country’s eighth largest bank in terms of assets, also recently partnered with Mitsubishi UFJ Financial Group Bank to promote business opportunities between Philippine and Japanese companies.In 2023, Security Bank saw its earnings dip by 13.74 percent to P9.1 billion on higher expenses. —Meg J. Adonis INQ