RCBC cleared to take over thrift bank unit
Lawrence Agcaoili (The Philippine Star) - June 19, 2019 - 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has given Rizal Commercial Banking Corp. (RCBC) the go signal to absorb its wholly owned thrift bank arm, RCBC Savings Bank, for a more efficient capital deployment and operational cost efficiencies.

Ma. Cristina Alvarez, corporate planning head and corporate information officer at RCBC, said in a disclosure to the Philippine Stock Exchange the BSP approved the merger between RCBC and RCBC Savings Bank last June 17.

The RCBC board approved the merger last November and stockholders last Feb. 26 for more efficient capital deployment, more efficient compliance with the Basel 3 liquidity ratios, and optimal coordination between the branch banking networks of RCBC and RCBC Savings.

The consolidation is also aimed at operational cost efficiencies and medium-term improvement in funding economics.

RCBC is the country’s 10th largest bank in terms of assets with P346.2 billion as of end-December 2018 and eighth largest in terms of capital with P83.24 billion, while RCBC Savings Bank is the third largest thrift banks in terms of assets with P139.91 billion and third largest in terms of capital with P13.28 billion.

 RCBC raised its authorized capital to P28 billion consisting of 2.6 billion common shares and 200 million preferred shares at P10 per share from P16 billion composed of 1.4 billion common shares and 200 million preferred shares to prepare for future capital raising activities.

RCBC has 332 branches and 1,138 ATMs, while RCBC Savings Bank has 154 branches and 459 ATMs.

Outgoing RCBC president and chief executive officer Gil Buenaventura earlier said the process for the merger of RCBC Savings Bank and RCBC is already underway and is planned to commence in the second half of 2019.

Earnings of RCBC went up by 15 percent to P1.3 billion in the first quarter of the year from P1.1 billion in the same period last year. 

  • Latest
  • Trending
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

or sign in with