MANILA -- Security Bank said Friday Thailand’s Bank of Ayudhya would acquire half of its consumer finance subsidiary, forming a strategic partnership to grow its loan portfolio and product suite.
Security Bank and the Thai lender, commonly known as Krungsri, both have Japan's MUFG Bank as common shareholder. Bank of Ayudhya will take a 50-percent stake in SB Finance Co, the Filipino bank said in a statement.
"By localizing the strategies that propelled Krungsri to become Thailand’s market leader in consumer finance, SBF is well positioned to scale the business faster, launch better and more innovative product variants, serve more customers and, in effect, substantially grow its market share in retail business," said Security Bank President and CEO Sanjiv Vohra.
Vohra told ANC's The Boss last July 26 that loan growth had been "across the board," with credit cards and auto loans leading the expansion.
Further interest rate cuts by the Bangko Sentral ng Pilipinas will help jump-start credit growth, Vohra said. The BSP cut the benchmark borrowing rate by 25 basis points last Thursday with gross domestic product growth in the second quarter at a 4-year low.
Security Bank cited Krungsri's status as the top consumer finance provider in Thailand, with operations in Laos, Cambodia and Myanmar.
"With expertise and experiences from both sides, the collaboration between Krungsri and SBC will enhance SBF's business competitiveness while penetrating and serving the Philippines' high growth consumer finance market," said Krungsri President and CEO Seiichiro Akita.