RCBC partners with 2 banks from Japan

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) has partnered with Japan’s Kansai Mirai Financial Group Inc. to help small and medium-sized Japanese firms advance their businesses in the Philippines.

Osaka-based Kansai Urban Banking Corp. and Kobe-based Minato Bank have signed a business alliance agreement with the Yuchengco-led RCBC.

The two regional banks and RCBC aim to promote business tie-ups between their clients, while cooperating in offering Philippine market and investment information and various support such as accounting and tax expertise.

“There are growing needs (for such services) as a number of clients have interest (in the Philippines),” Kansai Urban Banking deputy president Kiyoshi Miura said.

Osaka-based Kansai Urban Banking, founded in 1922, has a network of 138 branches and 17 sub-branches, while Kobe-based Minato Bank, incorporated in 1949 has 103 branches and two sub-branches.

On the other hand, RCBC now has a consolidated network of 508 branches and 1,580 ATMs all over the Philippines.

Strong loan growth boosted RCBC’s earnings by 13 percent to P1.1 billion in the first quarter of the year from P1 billion in the same period last year.

The bank’s net interest income rose 16 percent to P4.8 billion in the first quarter from P4.1 billion in the same period last year amid its vibrant lending business.

RCBC’s total customer loan portfolio jumped 18 percent to P370.9 billion as corporate loans grew 14 percent, loans to small and medium enterprises (SMEs) by 40 percent growth in SME loans, consumer loans by 17 percent and credit card receivables by 40 percent.

Its microfinance arm, Rizal MicroBank, booked a 33 percent increase in its loan book as it continues to provide financing for micro and small enterprises (MSMEs).

On the other hand, RCBC Bankard managed to sustain a strong and active card base, growing 16 percent to 602,000 in the first quarter of the year.

RCBC has raised $450 million from the offshore debt market as part of its $2 billion medium term note program. Proceeds of the fund raising activities would be used for refinancing operations, general corporate purposes and to participate in infrastructure deals.

The bank is also raising P15 billion from the sale of new shares to existing shareholders. The Philippine Stock Exchange has approved the fund raising activity via a stock rights offering.