Security Bank takes in 25% stake in Home Credit Philippines

November 30, 2024 | 12:00am

MANILA, Philippines —  Security Bank Corp. has entered into an agreement to acquire a 25 percent ownership stake in HC Consumer Finance Philippines Inc., also known as Home Credit Philippines (HCPH), from MUFG Bank Ltd.

In a statement yesterday, the bank said it would buy the 25 percent from MUFG Bank for approximately P11 billion. The transaction is set to enhance Security Bank’s position in the consumer finance market.

Krungsri (Bank of Ayudhya PCL and its business units) will continue to hold a 75 percent ownership stake in HCPH and remain the majority shareholder.

“As we welcome Home Credit into the Security Bank family, we’re excited by the strategic benefits this acquisition brings,” Sanjiv Vohra, Security Bank president and CEO, said.

“This is a tremendous opportunity to leverage synergies, offer innovative lending solutions, and support financial inclusion. We look forward to driving growth and delivering value to our stakeholders together,” Vohra said

According to the lender, the deal builds on Security Bank’s strategic alliance with MUFG since 2016. It also reinforces its second partnership with Krungsri, following their SB Finance  Inc. joint venture.

The acquisition aligns with Security Bank’s vision of becoming the most customer-centric bank in the Philippines.

“We are delighted to enter into this agreement with Security Bank as we believe that Security Bank will complement Krungsri in Home Credit Philippines,” said Yasushi Itagaki, MUFG group chief operating officer-international, said.

“Security Bank’s on-the-ground presence and understanding of the local market will bring forth continued growth for Home Credit Philippines,” Itagaki added.

The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals. AlphaPrimus Advisors acted as financial advisor and Picazo Law acted as legal counsel to Security Bank in this transaction.

Meanwhile, Security Bank chief financial officer Eduardo Olbes told reporters that the bank is targeting stronger profitability for next year.

For 2025, the bank aims to achieve a better return on equity, with a target of reaching near double-digit levels from the current eight percent level.