RCBC, thrift banking arm to merge

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) will merge its wholly-owned thrift banking arm, RCBC Savings Bank, to the parent lender.

In a disclosure to the stock exchange, the Yuchengco-led bank said the planned transaction is expected to yield the following benefits:

• More efficient capital deployment,
• more efficient compliance with the Basel 3 liquidity ratios,
• optimal coordination between the branch banking networks of RCBC and RCBC Savings,
• medium-term improvement in the funding economics,
• and operational cost efficiencies.

“The implementation of the transaction will be subject to regulatory approvals,” RCBC said.

A double-digit growth in expenses pulled down the earnings of RCBC by 6.4 percent to P2.2 billion in the first half from P2.35 billion in the same period last year.

Shares in RCBC gained 70 centavos or 2.8 percent to close at P25.70 each at the Philippine Stock Exchange on Tuesday. — Ian Nicolas Cigaral

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