The Business Banking Segment (BBS) within Security Bank has become one of the fastest-growing parts of the organisation since its launch in 2022 – and last year it continued to bring new products and platforms to micro, small and medium enterprises (MSMEs) in the Philippines.
This resulted in strong performance for the unit, making it a deserving winner within this award category, according to judges.
Notably, it saw a boost in new-to-bank accounts, complemented by increases in its loan portfolio, deposit base and net income, all without compromising asset quality.
Several initiatives reinforced the BBS proposition in 2024 to contribute to the bank’s performance.
Firstly, Security Bank revitalised internal incentives by rewarding sales officers and team leaders with quarterly and half-yearly performance bonuses, respectively.
Secondly, the bank saw a substantial fee contribution from FX and other investment trading gains. To achieve this, BBS had supplemented the bank’s treasury sales team’s efforts with branch campaigns and data-driven campaigns, and new-to-FX call-outs.
Thirdly, the bank boosted low-cost deposits by growing its current account savings accounts through close collaboration with branches via a year-round campaign, ‘CASAlo-salo FUNalo’ , where branches competed to increase new-to-bank accounts and grow existing accounts.
Meanwhile, in line with Security Bank’s customer-centric vision, together with treasury team, it offered bundled time deposits and swap investments to give MSMEs an opportunity to earn more. This resulted in growth in high cost deposits.
Further, the BBS offered innovative propositions via several partnerships, including: online payments via cards and e-wallets via SB Collect; and business insurance via property, business and third-party protections.
Meanwhile, Security Bank Capital Investment Corporation, the firm’s investment banking arm, also had an impressive year in 2024, earning it recognition in that category as ‘Highly Commended’ .
Noted by judges for “punching above its weight”, it continued to compete with the top tier investment houses – with nine bond issuances across sectors and ranking fifth for debt capital markets (DCM), based on Philippine Dealing & Exchange Corp data, and fourth for equity capital markets (ECM). It also showcased its strong advisory and M&A capabilities.
A big part of the bank’s success has come from close engagement with its wide range of clients – corporates, financial institutions and the government – and a commitment to strengthening its distribution arm, despite only having 328 branches, meaning it had to maximise and increase penetration of its internal distribution channels.
More specifically, last year in the bond markets, the bank’s role on deals across diverse industries included the largest corporate bond offering in the first half of 2024, for SM Prime Holdings. In terms of loans, Security Bank closed eight project finance transactions, including the largest solar power project financed in the Philippines to date. Further, in ECM, the bank attracted significant investor demand while also contributing to the growth of issuers across various industries for the equity issuances it had led.
Security Bank Capital’s financial performance was also notable in 2024. Its cost-to-income ratio was lower at around 32%, compared with the Universal and Commercial Bank group average of just over 56%, based on Banko Sentral ng Pilipinas data.
"We’re honored by FinanceAsia’s recognition as Best Commercial Bank for SMEs and Highly Commended as Best Investment Bank. As a trusted partner, we stay focused on delivering customer f irst solutions, expert advice, and consistent performance. Thank you to our clients, our teams, and FinanceAsia."
John David Yap, EVP and Business Banking Segment Head
Contact
Security Bank
T: (632) 8876-6788; (632) 8888-7800
W: www.securitybank.com
Security Bank Capital
T: (632) 8888-7207; (632) 8867-6788
W: www.securitybank.com/securitybank-capital
