RCBC plans P7-B notes issue
The Yuchengco-controlled Rizal Commercial Banking Corp. (RCBC) is planning to issue debt notes worth up to P7 billion with a proposed maturity period of five years.
“It will keep our capital adequacy ratio (CAR) at 18 percent,” RCBC president and chief executive officer Lorenzo V. Tan said.
The Bangko Sentral ng Plipinas (BSP) requires a minimum CAR of 10 percent in all Philippine banks, while the Basel II international bank framework requires at least eight percent on all banks worldwide.
The new capital will be used to replace RCBC’s maturing Tier 2 capital worth P5 billion issued in 2003.
Tan said RCBC will be putting greater emphasis on the consumer or retail market, including small and medium enterprises (SMEs).
He added that he is also optimistic the bank will surpass its 2007 full-year net income target of P2 billion.
In the first half of last year, RCBC’s profit expanded 245-percent growth to P1.81 billion from the P524 million in 2006. RCBC reported a net income of P2.011 billion in 2006, 23 percent better than the P1.63 billion recorded in 2005.
“Whichever way it goes, we are looking at P3.6 billion as 2008 profit target,” Tan said.
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