Security Bank looks to hitch on ETF bandwagon
MANILA, Philippines - Security Bank Corp. (SBC) is looking to join the bandwagon in the issuance of exchange-traded funds (ETFs).
SBC executive vice president Rafael Algarra Jr., told reporters on the sidelines of the bank’s annual stockholders’ meeting yesterday that they are looking into it although the timetable for their ETF issuance hinges on how soon regulators can release the implementing guidelines.
“If they (PSE and SEC ) finish the guidelines this year, then we can probably issue ETF this year,†he said.
The SBC official said they would likely start from the minimum capital of P250 million and increase the size of the fund depending on the demand of the market.
ETF is a special kind of mutual fund that could be traded as a normal stock in an exchange. It experiences price changes throughout the day as they are bought and sold.
Earlier, Metrobank’s First Metro Investment Corp., Banco de Oro and Bank of Philippine Islands have signified interest to issue ETFs.
Algarra, meanwhile, said they do not have plans yet to issue long-term negotiable certificates of time deposit (LTNCD).
“We do not see the need yet,†he said, noting that SCB had already issued P10 billion worth of LTNCD last year which basically covered the bank’s financing need for the near term.
This year, SCB president and CEO Alberto Villarosa said they want to focus on strengthening and expanding its retail banking segment over the medium term.
This year, the bank plans to jack up the number of its branches to 250 from current level of 210. Most of the new branches will be located in Metro Manila.
As the bank grows its retail network, Villarosa said they expect their loan portfolio expanding 10 to 15 percent this year, about the same level as the entire banking industry.
The projected loan growth for 2013, Villarosa said, would be driven by its retail banking business.
“There are two dimensions to our retail business. One is our product distribution reach through our bigger branch network, which will deliver the services that Security Bank is known for in the market today. These include investment products originated by our financial markets and capital markets businesses, hedging products, and electronic banking services, which in turn feed our asset management and wealth management services,†he said.
He said subsidiary Security Savings Bank will give the big push in these key retail markets.
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