RCBC to increase capital stock from P16B to P28B
MANILA, Philippines – Yuchengco-led Rizal Commercial Banking Corporation (RCBC) has announced plans to increase its authorized capital stock in order to take advantage of the country’s rapid growth.
“Shareholders approved the increase in its authorized capital stock from P16 billion to P28 billion. This will be done through an increase in Common Shares to 2.6 billion from 1.4 billion,” RCBC said in a disclosure to the stock exchange on Tuesday, January 30.
With par value of P10 per share, RCBC said that there will be an increase of P12 billion in the amount of common shares, or from P14 billion to P26 billion.
The bank also noted that “the Common Shares shall have the same features, rights and obligations as, and will rank pari passu in all respects with the existing Common Shares of the Bank.”
RCBC said that the move is in preparation for future capital-raising activities to support its growth plans.
The bank noted that with the Philippine economy growing by 6.7% in 2017, it "believes it is well positioned to capitalize on economic growth in the Philippines and expects to be conducive to further loan expansion across industry segments and consumer spending."
RCBC added that it intends to focus in particular on consumers, small and medium enterprises (SMEs), middle market, and the microfinance sector, as well as pursuing sustainable loan growth.
The bank also said it would pursue investments in technology to improve customer experience, broaden its customer base, and increase operational efficiency.
According to the Bangko Sentral ng Pilipinas (BSP), RCBC is the country’s 10th largest bank, with 508 branches and 1,562 ATMs nationwide.
Last year, the bank paid the BSP a record P1-billion fine in connection with the Bangladesh Bank heist.—Rappler.com