MANILA - Security Bank on Tuesday said the joint venture SB Finance, with Thailand's Bank of Ayudhya Public Co Ltd (Krungsi), would receive at least P3 billion in capital infusion in the coming months.
At least 15 percent (about P450 million) is earmarked to boost its digital presence, SB Finance said.
"Investment in SB Finance will be used to support our expansion, strengthen internal capabilities and invest in technology so at least for this year we're allocating around 15 percent of that for our digital investment," SB Finance chief financial officer Joy Supan said during a virtual briefing.
The joint venture is focused on Philippine consumer loans.
Targets are being adjusted accordingly as the COVID-19 pandemic continues to affect consumer lending in the country, SB Finance president and chief executive officer Abbie Casanova said.
"We also have to be mindful of how the economic situation is faring in the Philippines. So we adjust our targets accordingly but I think what's more important at this point is to be ready and to be there when the moment strikes," she said.
Bank lending declined 4.5 percent in March, the Bangko Sentral ng Pilipinas earlier said.
SB Finance chief risk officer Dominic Notario said there were improvements in asset quality as the overall economic environment started improving in 2021.
The Philippine gross domestic product dropped 4.2 percent in the first quarter.
In 2019, Security bank's retail loans grew 56 percent to P132.2 billion, accounting for 29 percent of the lender's total portfolio.