Security Bank Corp. plans to put up over 50 branches in 2025 as it seeks to expand its footprint in fast growing provincial areas.
Security Bank chief finance officer Eduardo Olbes said in an roundtable interview with reporters Friday the bank is building more brick and mortar stores both in northern and southern Luzon as well as Visayas and Mindanao.
“We hope to end this year somewhere around 340. By next year we imagine that we will be close to probably 400 branches,” Olbes said.
“We are pushing a lot into areas outside National Capital Region and the reason for that is we feel we’re under represented, meaning many commercial hubs are growing and therefore we need to establish our presence so people are interact with us,” he said.
Meanwhile, Olbes said the bank is also expecting to sustain its growth in terms of profitability as loan growth remains strong.
Olbes said the bank’s return-on-equity to reach near double-digit level from current 8 percent.
Security Bank posted net profit of P8.5 billion in the first nine months of 2024, up 12 percent year-on-year. Revenue growth accelerated in the nine month period at 28 percent year-on-year.
The bank is also expecting Bangko Sentral ng Pilipinas to lower interest rates by 100 basis points next year which will further support loan growth.
“We at Security Bank anticipate an incremental 100 basis point rate drop in rates in 2025. Our view is while have started reducing interest rates, but we are not yet at the end point and people are expecting another 100 basis points to be cut,” Olbes said.
He said some companies are also waiting for the rate cut before finalizing their borrowing plans.
However, BSP may take a pause on rate cut this December amid recent depreciation of the peso against the dollar.
The local currency fell a record-low P59-a-dollar level last week, for the first time in more than two years as the dollar rallied following election of US president-elect Donald Trump.
