more formally known as Security Bank Corporation
and abbreviated as SBC
, is one of the largest commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s in the Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
. It is one of the twenty largest banks in the Philippines in terms of assets.
Security Bank was established on 18 June 1951 as Security Bank and Trust Company (SBTC) in Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...
. At the time, SBTC was the first privately-owned, Filipino-controlled bank of the post-World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
era. The bank's head office was first located on Plaza Goiti, moving to Escolta in 1954. At the time, Security Bank was so aggressive in opening branches that at one point during the 1950s, it had more branches in Metro Manila
Metropolitan Manila , the National Capital Region , or simply Metro Manila, is the metropolitan region encompassing the City of Manila and its surrounding areas in the Philippines...
than any other local bank.
Beginning in the 1960s, Security Bank also started expanding outside Metro Manila, with the opening of its first provincial branch in Angeles, Pampanga. Within the decade, the bank started a rapid expansion in the provinces. It was also in the 1960s that Security Bank led a consortium of local and foreign companies that lent US$
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
62 million to the Lopez family to fund their acquisition of Meralco
The Manila Electric Company , also known as MERALCO or Meralco, is the Philippines' largest distributor of electrical power.The word MERALCO, is an acronym for Manila Electric Railroad And Light COmpany, which was the company's original name from 1903 to 1919.MERALCO is the Metro Manila's only...
, the first of its kind in Philippine banking history.
In the 1970s, Security Bank issued its first credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
, introducing the Philippines to Diners Club
Diners Club International, founded as Diners Club, is a charge card company formed in 1950 by Frank X. McNamara, Ralph Schneider and Matty Simmons...
. It also marked the start of the bank's trust offerings, many of which were deemed innovative, and still survive today as pre-need and common-trust plans, of which they are descended from Security Bank's offerings at the time. Towards the end of the 1970s, the bank was granted permission to operate a foreign currency division by the Bangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...
. It widened its investment services portfolio in the 1980s, even when the Philippines was thrown into a deepening political crisis. Like other major banks, Security Bank survived.
The 1990s brought in new owners led by present chairman Frederick Y. Dy. On 26 April 1994, the bank was issued a universal banking license by the BSP. With the issuance of its universal banking license, the legal name of Security Bank changed to the present-day Security Bank Corporation. The bank also moved to its new headquarters along Ayala Avenue in Makati. SBC's stock was also formally listed on the Philippine Stock Exchange
The Philippine Stock Exchange is the national stock exchange of the Philippines. It is one of the oldest stock exchanges in Southeast Asia, having been in continuous operation since its inception in 1927...
on 8 June 1995, with a 1.5 billion-peso initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
. The bank celebrated its fiftieth anniversary on 18 June 2001.
In 03 June 2011, Security Bank reports that it bought Premier Bank for PHP 1.3 billion. The acquisition will expand the bank's branch network up to 30 percent.
As of June 2011, Security Bank is the Philippines' twelfth largest bank in terms of assets.
Subsidiaries and affiliates
Security Bank is divided into the following subsidiaries and affiliates:
- SB Capital Investment Corporation
- SB Cards Corporation
- SB Equities
- SB Forex
- Security Finance
- Security Land Corporation
- Security Philam Financial Solutions
- PCD Nominee Corporation
PCD Nominee Corporation is a wholly owned subsidiary of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines...
: 38.23% (26.89% Filipino, 11.84% foreign)
- Asiasec Equities: 16.24%
- Dy family: 12.35%
- ASI Securities: 2.99%
- SB Equities: 2.37%
- James J.K. Hung: 2.12%
- Goodword Resources Development Corporation: 1.32%
- Carnival Overseas Limited: 1.08%
- Public stock: 20.31%
Security Bank's main competitors are other major Philippine banks, like Metrobank
The Metropolitan Bank and Trust Company , commonly known as Metrobank. It has a diverse offering of financial services, from regular banking to insurance. Metrobank is the second largest bank in the Philippines.-History:...
, Banco de Oro, BPI
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...
, Land Bank of the Philippines
Land Bank of the Philippines , also known as LANDBANK or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen...
and Philippine National Bank
The Philippine National Bank is one of the largest banks in the Philippines, ranking fourth in terms of assets...