Security BankPrinciples of Finance

07/31/2013

Sources of Funds/Revenues

• Deposits from the account holders

• Service charges

Fund Allocation

• Lending to clients

• Investment on non-bank companies

• Expansion

Products and Services

Banking

• Savings

• Checking

• Time Deposits

• e-Banking

• Credit Cards

• Prepaid and Debit Cards

• Gift Cards

• eGiftCards

• Collection Services

• Disbursement Facility

• Banking Services

Trust and Investments

• Unit Investment Trust Funds

• Investment Management Accounts

• Regular Personal Trust

• Escrow

• Government Securities

• GOCC-issued Bonds

• Philippine Corporate Bonds

• US Dollar Bonds

• Foreign Exchange & Derivatives

Loanshttp://www.securitybank.com/

Types of Loans

• Consumer Loans• Car Loan

• Home Loan

• Personal Loan

• Salary Loan

• Doctor's Loan

• Seafarer Loan

• Commercial Loan

Policy and Process of Obtaining Loans

• The loan applicants must:

• Concur with the loan qualifications of the bank →

• Submit the complete requirements →

• Concur with the 5 Cs of Credit

• Character

• Capacity

• Capital

• Collateral

• Conditions

Policies on Payment of Loans

• Credit policies are very rigid.

• The Credit Committee scrutinizes the loan proposals and verifies if it is in accordance with the law.

Functions of Branch Personnel

• Tellers, receives the deposits coming from the depositors.

• Account section, deals with the opening/activation of account/s.

• Human Resource, deals with the acquisition of talents aside from walk-in applicants.

• Operations Personnel, deals with the acquisition and maintenance of clients.

BSP’s Influence to Security Bank’s Operation

• All banks are guided by the Bangko Sentral ng Pilipinas’ (BSP) policies and provisions.

• BSP provides the Proper code and ethics for Banking operations.

• It supervises the banks if it is operating accordingly with the rules and provisions of BSP.• E.x. Supervising the capitalization that has buffers, contingencies,

and allowances; interest rates, etc.

DOSRI Lending

• Security Bank do not engage with the Directors, Officers, Stockholders and Related Interests (DOSRI) lending.

R.A 9160Anti-Money Laundering Act of 2001

• Security Bank branch UST has not experienced Money Laundering.

Recent Major Issues

• Security Bank has not experienced major issues such as the Mergers, Bailouts or effect of financial crises such as exposure to the fall of the Lehman brothers.

Non Performing Loans Ratio

• These are the loans that are considered as bad debts; the loans that have turned sour; the debts that have not been paid.

• Banking Industry Rate dictates on what level the Non Performing Loans Ratio should be.

• Security Bank has the lowest LPL, it goes to show that the bank is conservative when it comes to granting loans.

Capital Adequacy Ratio

• Security Banks is highly complied with the Capital Adequacy Ratio.

Universal vs. Regular Commercial Banks