Security Bank Corp

Analysis

Business Description

Security Bank Corp (SECB) provides financial banking services and solutions to the retail, commercial, corporate and institutional clients. The company's businesses include retail, commercial and corporate banking and financial markets. SECB manages a network of 313 branches and 804 automatic teller machines (ATMs). It has operational presence in the Philippines.

The company classifies its operations under four reportable segments: Financial Markets, Wholesale Banking, Retail Banking and All Others.

SECB's Retail Banking segment provides commercial and consumer loans, auto loans, small business loans, mortgage, deposit-taking and servicing, and credit card facilities. In FY2020, the Retail Banking segment reported revenues of PHP15,772 million which accounted for 51.5% of the company’s total net interest income.

The company's Wholesale Banking segment offers lending and other credit facilities, cash management, relationship management, trade and deposit-taking and leasing services. It also provides structured financing and advisory services. In FY2020, the Wholesale Banking segment reported revenues of PHP10,187 million which accounted for 33.2% of the company’s total net interest income.

SECB's Financial Markets segment includes services such as financial derivatives, foreign exchange, asset management, money market, securities distribution and trust and fiduciary services. In FY2020, the Financial Markets segment reported revenues of PHP1,051 million which accounted for 3.4% of the company’s total net interest income.

The company’s All Others segment comprises operations and financial control groups. In FY2020, the All Others segment reported revenues of PHP3,640 million which accounted for 11.9% of the company’s total net interest income.

SECB offers investment and trust products including unit investment trust fund, investment management, fixed income securities and SB capital market products. Its trust services comprise personal management trust, escrow services, facility agency and retirement fund services.

The company provides bancassurance products such as investment-linked and traditional life insurance products, in partnership with FWD Life Insurance Corp. Its wealth management solutions include portfolio management, global investment solutions, financial planning solutions, protection and estate planning and serves through a team of wealth advisors.