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RIZAL Commercial Banking Corp. (RCBC) told the Philippine Stock
Exchange that it closed the deal on its purchase of Merchants
Savings and Loan Association Inc (MLSA).
In a disclosure, RCBC said it closed the
acquisition of the thrift bank on the afternoon of May 28 after
securing approval from the Bangko Sentral ng Pilipinas. RCBC had
acquired 96.38 percent of the thrift bank from Finman Capital five
days before.
Also included in the purchase are all the assets
of the thrift bank. Established in 1977, MLSA has 21 operating
branches, 7 of which are in Metro Manila while 7 are in Luzon, 4 in
Visayas and 3 in Mindanao.
“The acquisition is part of RCBC’s strategy
to increase its branch network within Metropolitan Manila.
Post-acquisition, RCBC and RCBC Savings Bank [RSB] will jointly
increase its combined branch network to 326 branches,” John G.
Deveras, the lender’s head of strategic initiatives, said.
With RCBC’s acquisition of MLSA’s ATM sites,
the universal bank would accelerate the growth of its branch and ATM
network, using it as a platform to offer clients new products and
services, he added. This will push RCBC’s total network of ATMs to
more than 300 nationwide.
At end-March, the lender’s net income declined
by 6.62 percent to P773 million year on year due to the “effects
of the slowing economy,” RCBC said. Net interest income, which
makes up 41.16 percent of gross profits, was flat at P2.023 billion.
Its capital adequacy ratio stood at 21.79 percent, well above the
BSP’s 10-percent minimum.
-- Likha C. Cuevas-Miel
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