Rizal Commercial Banking Corporation (RCBC) of Philippines Raising Capital for Microfinance Acquisitions

Commercial banks are beginning now to invest seriously and in large amounts into microfinance sector.  See news below.

MICROCAPITAL BRIEF:

Rizal Commercial Banking Corporation (RCBC) of Philippines Raising Capital for Microfinance Acquisitions

by MicroCapital on Friday, February 11, 2011 at 1:30pm

Rizal Commercial Banking Corporation (RCBC), a private commercial bank that was established in the Philippines in 1960, has announced that it plans to raise capital in the current quarter to fund acquisitions that will expand its reach in the microfinance sector. RCBC hopes to raise at least PHP 5 billion (USD 115 million) through the sale of equity capital for the acquisition of rural commercial banks that will enable the organization to provide financial services to micro-, small and medium-sized enterprises (MSMEs) in underserved communities.

Past acquisitions by RCBC of firms involved in microfinance include Jose P Laurel Bank Incorporated, a bank based in the Philippine province of Batangas, in 2009 and Merchants Savings and Loan Association in 2007.

In 2010, RCBC reported total assets of PHP 320 billion (USD 7.4 billion), return on assets of 1.47 percent, return on equity of 14.07 percent and net income of PHP 4.25 billion (USD 97.7 million).

By Julie Moksim, Research Associate

About Rizal Commercial Banking Corporation (RCBC): Rizal Commercial Banking Corporation (RCBC) was established in 1960 as Rizal Development Bank. In 1962 it was approved by the Philippines central bank to operate as a commercial bank and, in 1963, it began operations under its current name. With its subsidiary, RCBC Savings Bank, RCBC has approximately 340 branches in the Philippines. It also offers global remittance services through approximately 160 branches in Asia, the Middle East, the United States, Canada and Europe. In 2010, RCBC reported total assets of PHP 320 billion (USD 7.4 billion), return on assets of 1.47 percent, return on equity of 14.07 percent and net income of PHP 4.25 billion (USD 97.7 million).

Sources and Resources:

Business World Online: “RCBC Wants to Complete Fund Raising in Q1″, February 6, 2011, http://www.bworldonline.com/content.php?title=RCBC+wants+to+complete+fund+raising+in+Q1&id=25838

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