Makati city: Security Bank Corporation remains optimistic about its growth prospects despite global challenges, highlighting robust balance sheets across the banking sector as key to navigating economic uncertainty. "We are not pessimistic. I think banks continue to stay very positive and optimistic," stated Security Bank President and CEO Victor Lee during a briefing at the Makati Diamond Residences in Makati City on Thursday.
According to Philippines News Agency, the industry broadly anticipates sustained profitability even amidst risks from the ongoing Middle East conflict. Lee emphasized, "In fact, most banks are still projecting returns. No banks generally get into a loss situation." Despite the solid financial standing, banks have adopted a slightly more conservative approach concerning new loans and business opportunities.
Security Bank is focusing on three priority areas for growth in the coming years: wealth management, entrepreneur banking, and corporate and institutional banking. The bank's wealth assets under management are projected to rise significantly from PHP40 billion in 2017 to PHP560 billion by 2025. Similarly, its micro, small, and medium enterprises (MSME) portfolio is expected to increase from PHP13 billion in 2021 to PHP32.5 billion in 2025.
Additionally, Security Bank is well-positioned to support infrastructure, renewable energy, multinational companies, and Philippine businesses in international markets. Project-finance gross loans are set to grow from PHP53 billion in 2024 to PHP76.2 billion in 2025, while trade loans are anticipated to rise from PHP16.1 billion in 2020 to PHP33.8 billion in 2025.
Lee underscored the potential for substantial growth in the Philippines, stating, "The next phase of growth for the country will require significant investment in infrastructure, energy, and production capacity. That's really creating significant opportunities for banks with the capital expertise and partnership to finance it." From 2025 to the present year, Security Bank has already arranged 10 finance loans amounting to more than PHP500 billion in projects, demonstrating its capability in this sector.
The bank is also adopting a centrally governed approach to artificial intelligence to enhance technology delivery, business assistance, financial analysis, and operations. "Technology gives clients speed and control, but trust is still built through judgment, consistency, and understanding. The banks that matter most will be those that can deliver both," Lee concluded.
