The Bangko Sentral ng Pilipinas approved the planned merger of RCBC Savings Bank into parent company Rizal Commercial Banking Corp., a move that is seen to improve the latter’s financing and operational cost efficiencies.
RCBC said in a disclosure to the stock exchange Tuesday it obtained the BSP approval on June 17, 2019.
RCBC Savings Bank is a thrift bank that is fully owned by RCBC, the 10th largest lender in the country.
The board of directors of RCBC on Nov. 26, 2018 approved to merge RCBC Savings Bank into RCBC, subject to regulatory approvals. Then on Feb. 26, 2019, at least two-thirds of its stockholders approved the merger in a stockholders’ meeting.
“The proposed transaction will facilitate for the RCBC Group the following objectives: more efficient capital deployment, more efficient compliance with the Basel 3 liquidity ratios, optimal coordination between the branch banking networks of RCBC and RCBC Savings, medium-term improvement in the funding economics, and operational cost efficiencies,” the bank said.
RCBC is one of the leading banks in the country that offers a wide range of banking and financial products and services.
RCBC posted a 15-percent jump in net income to P1.3 billion in the first quarter of 2019 from P1.1 billion a year ago on the strength of the core businesses. Net interest income increased by 10 percent on year, while fee-based income grew 31 percent.
Loans to small and medium enterprises rose 12 percent to P53.8 billion. Its subsidiary Rizal Microbank improved its loans to small businesses by 20 percent to P1 billion.
Total resources rose 14 percent to P664.7 billion, while total deposits jumped P21.4 billion on year to P416 billion with CASA reaching P229.2 billion.
Capital funds stood at P83.3 billion and well above the minimum regulatory requirement with a CAR of 16.14 percent and CET1 ratio of 13.34 percent.