RCBC borrows $200 M for core business expansion

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) is borrowing $200 million to finance the expansion of its core business lines this year.

Ma. Christina Alvarez, RCBC corporate information officer, informed the Philippine Stock Exchange the bank has tapped Deutsche Bank AG and ING Bank NV to arrange a $200 million three-year syndicated term loan facility.

Alvarez said proceeds would be used for general corporate purposes.

RCBC is a member of the Yuchengco Group of companies and is engaged in all aspects of traditional banking, investment banking, retail financing including auto, mortgage and housing loans as well as credit cards.

It is also into remittance, leasing, foreign exchange, and stock brokering.

The number of bank branches of RCBC increased to 450 in the first half of the year from 439 in the same period last year while its ATMs reached 1,208 from 1,163.

RCBC earlier reported a 25 percent increase in earnings to P2.53 billion in the first half of the year from P2.02 billion in the same period last year.

“Cleary RCBC is on-track. We are advancing on all fronts from core lending to deposits to fee-based income.

“We are pleased with out first half 2015 numbers but we will continue to double our efforts in satisfying our customers and shareholders,” RCBC president and chief executive officer Lorenzo Tan said.

RCBC reported its net interest income reached P7.45 billion and accounted for 63 percent of the bank’s gross income which went up 12.4 percent to P11.8 billion.

Loans to small and medium-sized enterprises (SMEs) rose 30 percent in the first half of the year, while microfinance lending through Rizal Microbank surged 46 percent.