RCBC in talks to acquire two banks

Rizal Commercial Banking Corp. (RCBC), the country’s fourth largest private universal bank, is reportedly negotiating to acquire two smaller banks as it continues its expansion mode.

RCBC president Lorenzo V. Tan admitted in a press briefing that the bank is in talks with a thrift bank but he declined to reveal further information as negotiations are ongoing.

Industry sources said the target bank is likely a private development bank with branches within and outside Metro Manila specializing in small and medium enterprises (SME) and consumer lending.

“We hope to finalize the talks within three months,” the RCBC executive said.

According to sources, the other bank is a publicly-listed medium-sized commercial bank which has been through a lot of controversies since the latter years of the Estrada administration.

Among the bank’s stakeholders are foreign and local investors including state pension funds Social Security System (SSS) and the Government Service Insurance System (GSIS).

In the last quarter of 2007, RCBC acquired 30-year old thrift bank Merchants Savings and Loan Association Inc. from Finman Capital Corp. The acquisition worth P520 million, included the 21 bank’s operating branches, seven of which are in Metro Manila.

The acquisition is part of RCBC’s strategy to increase its branch network especially within Metro Manila. Consolidating Merchant Savings’ branches, RCBC and RCBC Savings will increase total branch network to 317.

“We are still open to acquisitions and our preference is smaller banks (in the case of commercial banks) and relatively larger ones (in the case of thrift banks),” the RCBC president said.

The bank’s focus this year is the consumer and SME market, as well as the middle corporate market.