To increase its funding source, the Yuchengco-led Rizal Commercial Banking Corp. (RCBC) recently concluded the sale of its shares to Japanese banking giant Sumitomo Mitsui Banking Corp. (SMBC).
In a disclosure made to the Philippine Stock Exchange (PSE) earlier this week, RCBC announced the completion of the sale of an additional 15.01% interest to the Japanese financial behemoth, regarded as one of the largest banks in the world today and has a presence in about 40 countries.
SMBC is also known as the commercial banking division of Sumitomo Mitsui Financial Group, a global financial group that develops operations in a wide range of fields, including banking, leasing, securities, credit cards, and consumer finance.
Facade shot (with logo) of RCBC’s office building in Makati
According to RCBC president Eugene Acevedo, the sale of over 15 percent of its share to SMBC forms part of the financial institution’s plans to support its long-term asset growth and digital investments.
“Through this partnership, RCBC would once again set the bar higher, adopting global best practices and customer-centric strategies, promoting disruptive banking solutions as well as expediting digital transformation,” the RCBC president said.
With the completion of the transaction and as a result of the stock purchase, RCBC received an additional P27 billion in funds — a capitalization which, according to the bank, “it plans to use to grow its corporate, small & medium enterprises and retail segments.”
In the eyes of Acevedo, the deal “would open more business matching opportunities for RCBC’s local customer base and SMBC’s global network.”
Furthermore, the bank said closer collaboration between the two financial institutions will open more business matching opportunities for RCBC’s local customer base and SMBC’s global network.
The agreement (to purchase over 15% of RCBC’s shares) was announced in November last year as SMBC began working to increase its banking presence in important Asian markets, including the Philippines.
RCBC is currently the fifth-largest private bank in the country in terms of assets. It has since achieved a P1.17 trillion balance sheet and a loan portfolio of up to P588 billion as of the end of June this year.