Security Bank to venture into more areas outside Luzon

MANILA, Philippines - Security Banking Corp.is planning to make its presence felt in more areas outside its Luzon stronghold.

Alberto S. Villarosa, Security Bank president and chief executive officer, said locations for future branch expansion is eyed in the Visayas and Mindanao, particularly in areas like Cebu and Davao.

“What we are now doing is looking at selective provincial areas where we are either not present in or we’re under-represented and that’s where we’re focusing on,” he said.

Villarosa, however, said the planned expansion would not be “as extensive” as it was in recent years, when the company opened 50 branches in two years’ time.

“We’re almost over in terms of the number of branches where we want to be,” he said.

As of end-June this year, Security Bank has grown its combined network to 253 branches from 117 branches six years ago.

Villarosa said the bank would open three more new branches before the year ends.

Security Bank’s move to put up more branches outside Luzon is part of the company’s plan to enhance its retail banking activities in the coming years.

Villarosa said Security Bank remains bullish on expanding its presence in retail banking in the short term.

“We expect that our retail bank in the next three to four years will be strong contributor of total business. We’re really looking at a model where a corporate bank, the commercial bank and the retail bank will be equal contributors to the business. And we’re getting there,” he said.

Villarosa earlier said the bank expects retail banking to account for at least 25 to 30 percent of their bottom line in the next five years from the present level of about 20 percent.

By developing its retail market, Security Bank is extending its strength outside wholesale and corporate banking.

While private banking addresses the high net-worth market, retail banking focuses and offers banking products fit for the mass affluent or individuals within the income bracket of P600,000 and above aged 17 to 45.

The change will be implemented on all of the bank’s branch network and set to be completed by next year.

Security Bank more than doubled its net earnings in the first half of the year to P3.614 billion, from P1.7 billion in the same period last year.