FM 133 CAPITAL MARKETS

Submitted by: Debbie U. Orjaliza

BSBA 3Bl

Summited to: Ms. Grace R. Banggat

Security Bank Corporation is one of the Philippines’ leading universal banks serving retail,
commercial, corporate and institutional clients. Established on June 18, 1951, it was the first
private and Filipino-controlled bank of the post-World War II period.

Security Bank was publicly-listed with the Philippine Stock Exchange (PSE: SECB) in 1995. Over the
years, the Bank prudently managed to remain one of the most stable in the banking industry and is
steadfast in its commitment to serve its clients and stakeholders.

Security Bank’s major businesses include retail, commercial and corporate banking, and financial
markets. It offers a wide range of services including financing, leasing, foreign exchange, stock
brokerage, investment banking and asset management through its subsidiaries (as of December 31,
2017): SB Cards Corporation, SB Capital Investment Corporation, SB Equities, Inc., SB Forex, Inc., SB
Rental Corporation, and SBM Leasing, Inc., a joint venture with Marubeni Corporation of Japan, and
SB Finance Company, Inc. (formerly Security Bank Savings).

In February 2015, the bank launched the Bancassurance product in partnership with FWD Life,
adding to the robustness of its financial services offering.

February 2015, the bank launched the Bancassurance product in partnership with FWD Life, adding
to the robustness of its financial services offering.

The Bank has established a nationwide presence in the Philippines. Through its aggressive
expansion efforts, the Bank is steadily growing its branch and ATM network in strategic locations in
the country.

In 2014, Security Bank embarked on a rebranding campaign to further strengthen market

appreciation of its retail banking business, which complements its wholesale banking business. At
the heart of this goal is to provide priority service and superior customer experience that resonates
with a new brand promise, “BetterBanking begins here”.

Key Milestone in 2016: Strategic Partnership with MUFG

On January 14, 2016, Security Bank entered into a strategic partnership with MUFG Bank. The
partnership with Japan’s largest bank provided Security Bank with additional capital, long-term
funding and business collaboration opportunities that support the acceleration of the Bank’s long-
term growth strategy including expansion of branch network and increasing penetration of the
retail market.

The Bank has established a nationwide presence in the Philippines. Through its aggressive
expansion efforts, the Bank is steadily growing its branch and ATM network in strategic locations in
the country.

In 2014, Security Bank embarked on a rebranding campaign to further strengthen market

appreciation of its retail banking business, which complements its wholesale banking business. At
the heart of this goal is to provide priority service and superior customer experience that
presonates with a new brand promise, “BetterBanking begins here”.

Key Milestone in 2016: Strategic Partnership with MUFG

On January 14, 2016, Security Bank entered into a strategic partnership with MUFG Bank. The
partnership with Japan’s largest bank provided Security Bank with additional capital, long-term
funding and business collaboration opportunities that support the acceleration of the Bank’s long-
term growth strategy including expansion of branch network and increasing penetration of the
retail market.

The strategic partnership was completed on April 1, 2016 with Security Bank receiving a capital
investment of Php 36.9 billion from MUFG, representing MUFG’s 20% ownership of the voting stock
in Security Bank. MUFG became the second largest shareholder of Security Bank with two Board
seats. The Dy Group remains as the biggest shareholder of SECB with majority voting control. The
capital investment by MUFG is the largest equity investment in a Philippine financial institution by
a foreign investor. Security Bank’s shareholders’ capital increased to Php 90.2 billion pro-forma as
of April 1, 2016 from Php 53.2 billion as of December 31, 2015, placing Security Bank among the
five largest private domestic universal banks in the country by capital.
MUFG Bank, a member of Mitsubishi UFJ Financial Group, Inc. (MUFG), has a global network
spanning more than 50 markets and offers an extensive scope of commercial and investment
banking products and services to businesses, governments and individuals worldwide. MUFG is one
of the world’s leading financial groups with key strengths in commercial banking, trust banking,
securities, credit cards, consumer finance, asset management and leasing.

The strategic partnership positions Security Bank as a strong local bank with access to MUFG’s
global network, products and services.

Committed to continuously provide exceptional value to its clients and stakeholders, Security Bank
has been acclaimed with awards and recognition from international and local organizations for
product innovation, market leadership, and best-of-class management practices.

Security Bank defines success beyond business through various educational and livelihood
activities, environmental and other sustainable programs as part of its corporate social
responsibility through Security Bank Foundation, Inc. (SBFI). SBFI’s initiatives promote deeper
engagement among Security Bank employees and encourage active involvement in helping create
positive changes in the communities where the Bank serves.

LATEST FINANCIAL STATEMENT

Audited Financial Statements

2020

Security bank financial statements Audited Financials 2020

2019

Security bank financial statements Audited Financials 2019

2018

Security bank financial statements Audited Financials 2018

2017

Security bank financial statements Audited Financials 2017

2016

Security bank financial statements Audited Financials 2016

2015

Security bank financial statements Audited Financials 2015

2014

Audited Financials 2014

2013

Audited Financials 2013

2012

Audited Financials 2012

Independent Auditors’ Report

Notes to Financial Statements

Supplementary Management Discussion

Statement of Management Responsibility

Statements of Cash Flows

Statements of Changes in Equity

Statements of Financial Position and Income

Supplementary Schedules

2011

Audited Financials 2011

Statement of Management Responsibility

Statements of Cash Flows

Statements of Changes in Equity

Statements of Financial Position and Income

2010

Audited Financials 2010

Statements of Financial Position and Income

Statement of Changes in Equity

Statement of Changes in Cash Flows

Statement of Management Responsibility

Independent Auditors’ Report

Notes to Financial Statements

2009

Audited Financials 2009

Statements of Financial Position and Income

Statement of Changes in Equity

Statement of Cash Flow

Statement of Management Responsibility

Independent Auditors’ Report

2008

Audited Financials 2008

Statements of Financial Position and Income

Statements of Changes in Equity

Statements of Cash Flows

Statement of Management Responsibility

Independent Auditors’ Report

2007

Audited Financials 2007

Statements of Condition and Income

Statements of Changes in Equity

Statements of Cash Flows and Notes to Financial Statements

Statement of Management Responsibility and Independent Auditors’ Report

2006

Audited Financials 2006

Statements of Condition and Income

Statements of Changes in Equity

Statements of Cash Flows

Statement of Management Responsibility and Independent Auditors’ Report

Notes to Financial Statements

2005

Audited Financials 2005

Statements of Condition

Statements of Changes in Capital Funds

Statements of Cash Flows

Statements of Income

Statement of Management Responsibility and Independent Auditors’ Report

Notes to Financial Statements

2004

Statements of Condition

Audited Financials 2004

Statements of Changes in Capital Funds

Statements of Cash Flows

Statements of Income

Statement of Management Responsibility and Independent Auditors’ Report

Notes to Financial Statements

2003

Audited Financials 2003

Statements of Condition

Statements of Changes in Capital Funds

Statements of Cash Flows

Statements of Income

Statement of Management Responsibility and Independent Auditors’ Report

Notes to Financial Statements

SWOT ANALYSIS OF THE COMPANY

*Synopsis
Timetric's "First Security Bank : Company Profile and SWOT Analysis" contains in depth
information and data about the company and its operations. The profile contains a company
overview, key facts, major products and services, SWOT analysis, business description, company
history, financial analysis, key employees, company locations and subsidiaries as well as employee
biographies.

*Summary

This report is a crucial resource for industry executives and anyone looking to access key
information about "First Security Bank"

The report utilizes a wide range of primary and secondary sources, which are analyzed and
presented in a consistent and easily accessible format. Timetric strictly follows a standardized
research methodology to ensure high levels of data quality and these characteristics guarantee a
unique report.

*Scope

Examines and identifies key information and issues about "First Security Bank" for business
intelligence requirements.

Studies and presents the company's strengths, weaknesses, opportunities (growth potential) and
threats (competition). Strategic and operational business information is objectively reported.

The profile also contains information on business operations, company history, major products and
services, key employees, and locations and subsidiaries.

*Reasons to Purchase

Improve your knowledge of "First Security Bank" in no time.

Gain a better grasp of the market and the internal and external forces that could affect the sector.

Increase your business/sales activities by learning more about your competitors' businesses.

Recognize possible suppliers and partners.

1. How do you prove that the company will reamain stable and solvent within the next 5 years of
operation? Explain

Answer: The most useful information for determining a company's solvency is found in its balance
sheets. Balance sheets, on the other hand, indicate a company's financial situation on a given day.
When performing horizontal trend analysis to determine solvency, it is best to have multiple
consecutive balance sheets accessible.

2. How will you convince an investor to invest (or invite someone to be a member) in the
aforementioned company?

Answer: Try the “soft sell” via networking.

Show results first.

Ask for advice.

Have co-founders.

Pitch a return on investment.

Find an investor that is also a partner, not just a check.

Join a startup accelerator.

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