Security Bank Corporation, one of the Philippines’ leading universal banks, has acquired a 25% equity stake in HC Consumer Finance Philippines, Inc. (HCPH), more commonly known as Home Credit Philippines, the country’s top consumer finance provider. This strategic investment underscores Security Bank’s commitment to expanding its consumer lending capabilities and deepening its presence in the fast-growing retail finance market.
The 25% stake was purchased from MUFG Bank Ltd. for a base consideration of PHP10.365 billion. A final price adjustment will be determined based on changes in HCPH’s net asset value between December 31, 2023, and April 30, 2025, and is expected to be settled within 90 days. Krungsri (Bank of Ayudhya PCL), a MUFG subsidiary, will retain a 75% majority stake in HCPH and continue to oversee the company’s operations. The transaction has received regulatory approval from the Bangko Sentral ng Pilipinas.
The acquisition comes on the heels of a strong financial year for Security Bank. In 2024, the Bank reported a record-high net income of PHP11.2 billion, marking a 23% year-on-year increase. Total revenues reached an all-time high of PHP54.9 billion, up 28% from the previous year.
Net interest income rose 26% to PHP43.7 billion, with a full-year net interest margin of 4.73%. Non-interest income also saw robust growth, climbing 36% to PHP11.2 billion. This was driven by a 47% increase in service charges, fees, and commissions—boosted by gains in bancassurance, credit card transactions, and loan-related fees.
Operating expenses grew 27%, reflecting the Bank’s continued investments in manpower and technology to support its digital and operational transformation. Despite this, pre-provision operating profit rose 30% year-on-year to PHP21.9 billion. The cost-to-income ratio stood at 60.2%.
Security Bank also allocated PHP6.6 billion in provisions for credit and impairment losses in 2024, up from PHP4.8 billion in the previous year. The Bank’s gross non-performing loan (NPL) ratio improved to 2.85%, down from 3.08% in the previous quarter and 3.37% a year ago. NPL reserve coverage stood at 81%.
This acquisition marks a significant step in Security Bank’s strategic growth, positioning it to better serve the evolving needs of Filipino consumers through enhanced access to installment-based financing solutions.
