February 23, 2017

SECB Open to More Mergers and Acquisitions

The Philippine Star today quoted the president and CEO of Security Bank (SECB) as saying the bank is open to possible mergers and acquisitions after taking in the Bank of Tokyo – Mitsubishi UFC Ltd (BTMU) as its foreign strategic partner. The bank reportedly is on the lookout for acquisition opportunities following the P37b capital infusion of BTMU into the bank.

Our take: SECB’s strong capital position and goal of expanding its branch network over the medium term should help support the case for more M&A deals. The bank ended 2016 with a parent CAR of 19.8% and parent CET1 Ratio of 17.3%, which should give it enough leeway for possible acquisitions. Moreover, an acquisition of another bank will help SECB in achieving its goal of expanding its branch network to 500 by 2020E from 292 at present. – WealthSec