Security Bank Corporation and its shareholder, Bank of Ayudhya PCL (Krungsri), may soon merge Home Credit Philippines (HCP) following the recent exit of MUFG Bank Ltd. from HCP.
Security Bank has entered into an agreement to acquire MUFG’s 25 percent stake in HC Consumer Finance Philippines Inc. (HCPH), also known as Home Credit Philippines, for P11 billion. HCP is the country’s leading consumer financing company.
Krungsri owns the remaining 75 percent of HCP and acquired a 50 percent stake in Security Bank’s consumer finance unit, SB Finance, in 2020. Given this, Abacus Securities Corporation said, "At some point in the future, we can probably expect that Home Credit and SB Finance will be merged.”
Security Bank said its strategic acquisition of a 25 percent stake in HCP underscores its commitment to enhancing its consumer finance capabilities and expanding its market presence.
HCP has served over 11 million customers with a comprehensive range of financial products, including point-of-sale (POS) loans, cash loans, revolving credit, and ancillary products such as insurance and warranty services. The firm is a POS market leader with strong partnerships with leading retailers and brands and a nationwide presence covering more than 15,000 POS locations.
“As we welcome Home Credit into the Security Bank family, we’re excited by the strategic benefits this acquisition brings,” said Security Bank President and CEO Sanjiv Vohra. “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.”
“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, Group COO-I and Head of Global Commercial Banking Business. “Security Bank’s on-the-ground presence and understanding of the local market will bring forth continued growth for Home Credit Philippines.”
This transaction marks eight years of the Security Bank and MUFG strategic alliance, which began in 2016 when MUFG bought a 20 percent stake in Security Bank. This allowed the local bank to access MUFG’s global expertise and grow its business beyond local borders.
It also represents the second partnership between Security Bank and Krungsri, following their SB Finance, Inc. joint venture.
The transaction is subject to regulatory approvals, with an expected closing in the first quarter of 2025.