RCBC searching for possible acquisition opportunities

The Yuchengco-led Rizal Commercial Bank Corp. (RCBC) is still on the lookout for acquisition opportunities to expand its banking activities.

According to RCBC executive vice president for corporate planning Cesar A. Rubio, the bank is still evaluating the benefits of acquiring the financially troubled Urban Bank.

"We have already expressed our interest but it is still very preliminary. We still have to look at the available information," Rubio told The STAR.

"We are interested in helping rehabilitate the bank to ensure a more stable banking environment. We are interested in helping Urban Bank depositors by giving them a way out, while helping us realize our long-term plans," Rubio said.

RCBC and RCBC Savings Bank has a combined branch network of 285 nationwide.

Rubio said that the name of the game is size and technological advancements in banking and banking products. They had earlier acquired Bankard and Capitol Bank for their credit card market and consumer banking requirements, respectively.

"Banking needs to get bigger. In fact, we have already invested $2 million for technology alone," he said.

Urban Bank declared a bank holiday in April last year due to huge financial losses and liquidity problems. It was placed under the receivership of Philippine Deposit Insurance Corp. (PDIC).

Meanwhile, the RCBC is also bidding for Equitable PCIBank. It has teamed up with Spain’s Banco Santander in a bid to acquire a majority stake in the bank.

Other bidders are the Gokongwei-led JG Summit Holdings Inc. along with Fubon Group, Sycamore Fund, and the US-based Newbridge Capital Inc.