RCBC takeover of thrift unit gets SEC OK

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is getting closer in absorbing its wholly owned thrift bank arm RCBC Savings Bank after getting the green light from the Securities and Exchange Commission (SEC).

In a disclosure, Ma. Cristina Alvarez, corporate planning head and corporate information officer at RCBC, said RCBC has approved the merger of RCBC Savings Bank last July 22.

Under the plan, Alvarez said RCBC Savings would transfer its net assets to RCBC in exchange for 315.3 million common shares.

The board of directors of RCBC approved the planned 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 aimed at operational cost efficiencies and medium-term improvement in the funding economics.

RCBC is the country’s 10th largest bank in terms of assets with P537.64 billion as of end-March and 9th largest in terms of capital with P83.07 billion, while RCBC Savings Bank is the 3rd largest thrift banks in terms of assets with P137.04 billion and 4th largest in terms of capital with P13.58 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.

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 quarter last year amid its robust core businesses.