SECURITY Bank Corp., the sixth-largest lender in terms of assets, expects total branches to reach 292 by the end of the year, president and chief executive Alfonso Salcedo Jr. said Thursday evening.
“We see our branch network to reach a total of 292 this year. As of July, total branches already reached 277,” Salcedo told reporters at the sidelines of a media event held in Makati City.
Salcedo said the bank earlier planned to open 30 branches this year. He said 15 had already been opened in different locations nationwide.
Salcedo said the capital expenditure for each branch was estimated at P5 million. About 70 percent of Security Bank’s new branches would be situated in the provinces because of growth prospects in the countryside. The balance will be opened in Metro Manila.
Bank of Tokyo-Mitsubishi UFJ Ltd., Japan’s largest bank, in February this year acquired 20 percent of Security Bank for P37 billion. The equity infusion was considered the biggest by a foreign financial institution in the Philippines.
Salcedo said the bank would use part of the additional capitalization from BTMU to expand branches nationwide to around 500 to 600 in the next five years.
Security Bank’s net income in the first half of 2016 increased to P4.9 billion from P3.5 billion a year ago, buoyed mainly by higher net interest profit.
Net interest income jumped 28 percent to P1.6 billion, offsetting a P1.4-billion decrease in securities trading gains from a high of P3 billion in the first half of 2015 to P1.6 billion in the first half of 2016.
Net income in the second quarter grew 42 percent year-on-year to P1.85 billion from P1.3 billion on the back of a 34-percent year-on-year increase in net interest income to P3.9 billion, a 41-percent rise in service charges, fees and commissions, and a three-fold increase in foreign exchange income.
Service charges, fees and commissions rose 25 percent to P1.1 billion, propelled by bancassurance, credit cards, loan fees and advisory, while foreign exchange income increased two-fold to P422 million.
