MUFG gains foothold in Philippines by acquiring stake in consumer loans business, SB Finance, a subsidiary of Security Bank
MUFG Bank’s Thai subsidiary Bank of Ayudhya (Krungsri) has agreed to acquire 50% stake in SB Finance, a subsidiary of Security Bank, a Filipino bank for an undisclosed amount.
Krungsri will acquire the stake in SB Finance within this year, subject to approval from relevant regulatory authorities along with other conditions.
SB Finance is a consumer finance company conducting unsecured consumer loan business in the Philippines. Krungsri, a player in consumer finance in Thailand plans to combine its expertise in the field with Security Bank and SB Finance’s knowledge of the local Philippine market to offer better value-added services.
MUFG in a statement said: “This share acquisition marks the first joint venture between partner banks of MUFG Bank. We will strive to meet the various needs of customers in this region by further enhancing our services.”
By acquiring stake in SB Finance, Krungsri aims to further expand its business in the consumer finance market, which is expected to grow with the young and steadily-increasing population of the Philippines.
Krungsri is a strategic member of MUFG
Claimed to be the fifth largest financial group in Thailand, Krungsri has been offering services for the past 74 years in the country. It is a strategic member of MUFG, offering a comprehensive range of banking, consumer finance, investment, asset management and other financial products and services to individual consumers, SMEs and large corporations through 698 branches and over 34,186 service outlets across the nation.
MUFG Bank is gaining foothold across Southeast Asia by offering value-added financial services to customers in the region. In addition to Krungsri and Security Bank, MUFG also works with PT Bank Danamon Indonesia, Tbk. (Bank Danamon) in Indonesia and Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), a Vietnamese government bank.
Last year, the Japanese banking company secured approval from the Financial Services Authority of Indonesia (OJK) to increase stake in PT Bank Danamon Indonesia.
With the approval, the bank increased its stake in PT Bank Danamon to 40% by acquiring an additional 20.1% interest from Asia Financial (Indonesia) and other affiliated entities.