spot_img
28.1 C
Philippines
Friday, March 29, 2024

SEC approves merger of RCBC and thrift bank unit

- Advertisement -

The Securities and Exchange Commission approved the merger between Rizal Commercial Banking Corp. and subsidiary RCBC Savings Bank.

The Bangko Sentral ng Pilipinas issued Circular 2019-059 on Aug. 19 to inform its supervised financial institutions about the merger.

It said the SEC approved on July 22, 2019 the plan of merger and articles of merger executed on Nov. 27, 2018 and March 19, 2019, respectively, by RCBC and RCBC Savings Bank with the former as the surviving corporation.

It said that with the merger, the entire assets and liabilities of RCBCS would be transferred to and absorbed by RCBC.  The merger took effect on July 22, 2019.

The merger was approved by the Bangko Sentral ng Pilipinas on June 17, 2019. The union was seen to improve RCBC’s financing and operational cost efficiencies.

- Advertisement -

RCBC is one of the leading banks in the country that offers a wide range of banking and financial products and services.

RCBC’s consolidated net income jumped 23 percent in the first half to P2.7 billion from the P2.2 billion a year ago on sustained strength of core businesses.

The bank said in a disclosure to the stock exchange the strong growth in net income resulted from sustained efforts in strengthening the bank’s core business with double-digit growth in net interest income by 10 percent and fee-based income by 23 percent.

Net interest income rose 10 percent to P10.6 billion, driven by the growth in the outstanding loan portfolio of key select markets. Loans to small and medium enterprises grew by 20 percent to P60.5 billion.

Rizal Microbank’s loans to micro and small business enterprises went up by 18 percent to P1.2 billion.

RCBC’s loans to consumers—which include mortgage loans, auto loans, and credit cards—increased by 18 percent to P120.6 billion. Gross outstanding credit card receivables accelerated by 37 percent to P25 billion with an active card base of 788,000.

Non-interest income in the first half jumped 102 percent to P6.1 billion, coming from stronger contributions in treasury-related and fee-based income.

The bank booked P3.2 billion in trading gains and P2.1 billion in fee-based income.

Total resources increased by 15 percent to P673.8 billion. The bank’s capital funds reached P83.4 billion, above the minimum regulatory requirement.

Total deposits also grew by 6 percent or P22.2 billion.

- Advertisement -

LATEST NEWS

Popular Articles