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June 24, 2024

RCBC completes sale of 15% stake to SMBC, reinforcing growth

Rizal Commercial Banking Corp. (RCBC) has successfully concluded the sale of an additional 15-percent stake to Sumitomo Mitsui Banking Corp. (SMBC) of Japan, amounting to P27 billion. This transaction has raised SMBC’s ownership in RCBC to 20 percent, significantly increasing its share from the initial 4.999 percent. RCBC’s President and CEO, Eugene Acevedo, emphasized that this partnership will propel RCBC’s growth trajectory, enabling the adoption of global best practices and customer-centric strategies while accelerating digital transformation.

The P27-billion capital infusion from SMBC is set to bolster RCBC’s core businesses, particularly in the corporate, small and medium enterprises, and retail segments. The strategic investment by SMBC brings substantial new core equity tier 1 capital of P27.126 billion, supporting RCBC’s long-term asset growth, investments in technology, cybersecurity, and human resources.

SMBC, a significant banking entity in Japan and the commercial banking arm of Sumitomo Mitsui Financial Group, holds total assets of 269.7 trillion yen and a consolidated total capital ratio of 16.02 percent as of June 30, 2022. This investment aligns with SMFG’s strategic expansion plan across key Asian markets, including the Philippines.

With a balance sheet amounting to P1.17 trillion and a loan portfolio of P588 billion as of June 2023, RCBC stands as a prominent financial institution in the Philippines. Being the first local bank to establish a Japan desk in 1974, RCBC’s extensive dealings with Japanese companies set it apart in the industry.