RCBC Savings Bank wants 20 more branches in 2011

MANILA, Philippines - The RCBC Savings Bank (RSB) is planning to open a maximum of 20 branches this year, while it awaits regulatory approval for its first five license applications. It will likewise be installing up to 150 new ATMs across the country.

The first five for the year will be located in Bulacan and others areas right outside the restricted area. The next 15 will be spread out nationwide.

“It is a mix, but not in the restricted zone,” Rommel S. Latinazo, RSB president said. The so-called restricted areas are basically within Metro Manila, which is considered over-banked or heavily congested with bank headquarters and their respective branch networks.

Latinoza admitted that the thrift bank of the Yuchengco Group of Companies have already identified 15 branch sites and made the necessary arrangements.

When the first five branches had been completed, they will immediately apply for the next five, as allowed by monetary regulations.

RSB is also making provisions to refurbish existing branches.

“That is also what we want to do for some of the existing branches, and we want to fast track these,” the bank chief executive said, adding that they hope to get further fund as a result of the sale of common shares by mother unit, Rizal Commercial Banking Corp. (RCBC).

Last week, RCBC raised P4.96 billion in Tier 1 Capital with the sale of between 12- to 14-percent equity to CVC Asia Pacific Ltd., a major private equity investor and a subsidiary of global player CVC Capital Partners Ltd.

That will entitle CVC Asia Pacific to two board seats, and raises the bank’s Tier 1 Capital by P3.7 billion.

In March, the International Finance Corp. (IFC), the investment arm of the World Bank, acquired 7.2-percent equity in RCBC worth P2.1 billion (approximately $49 million). The size of the acquisition entitled the private investment arm of the World Bank, one board seat in the 15-man seat of the universal bank.

RSB meanwhile recorded a six-percent increase in net income to P234 million in the first three months of 2011.

Latinazo said that the first quarter performance was weak compared to the same period in 2010. In fact, last year will be a hard act to follow for majority of the Philippine banks.

Nonetheless, the bank did relatively “alright relative to bookings.”

“It is a combination of our accrual income from loans, some good income, trading gains. Compared to last year, our trading gains this year was weak but the quarter was still good,” the bank president said. “All banks have not been aggressively projecting growth as strong as 2010. Banks have to rely on grabbing opportunities.”

RSB, as in most banks with auto loans, have been experiencing delays in the processing of auto loans due to the delays or the perceived lack of deliveries, due to the March 11 Japan disaster that derailed the supply chain.

Last year, RSB recorded a 21-percent increase in net income in 2010, from P800 million in 2009 to P968 million.

Total number of business centers was 118 and 151 ATMs (115 onsite and 36 offsite).  

Total resources stood at P57.9 billion, or 17 percent higher than the previous level of P49.4 billion.

Loan portfolio rose by eight percent from P32.3 billion in 2009 to P34.8 billion in 2010.

Of the total loan portfolio, mortgage loan loomed as the public favorite accounting for 56 percent of total, while auto loans took up 39 percent.

Personal and salary loans accounted for the remaining balance of the total loan portfolio.

Total deposit liabilities grew by 17 percent, or from P41.1 billion in 2009 to P48.1 billion in 2010.