MANILA, Aug. 27 (PNA) — Yuchengco-led Rizal Commercial Banking Corporation (RCBC) on Wednesday confirmed a news report that it is in discussion with Taiwan’s largest financial group, Cathay Financial Holdings Co.
According to the report, the foreign financial group eyes minority stake in RCBC.
In a disclosure with the Philippine Stock Exchange (PSE), the Philippines’ sixth largest domestic commercial bank in terms of assets said negotiations between the two entities are on-going but declined to elaborate.
It also cited that it has announced in its disclosure on August 13, 2014 that “there are ongoing discussion for a private placement which are not yet final.”
”A confidentiality agreement prevents RCBC from disclosing at this point in time the specific details until such time the negotiations are finalized,” it said.
”We will advise the Exchange as soon as there are more specific developments,” the disclosure added.
Just like other Philippine banks, RCBC has been beefing up its capital partly to meet the more stringent capital requirements under BASEL 3, which the Bangko Sentral ng Pilipinas (BSP) fully-implemented since January 1, 2014.
As of end-June this year, the bank’s capital adequacy ratio (CAR), which is a gauge of a bank’s financial health, is at 13.8 percent, higher than the central bank’s 10 percent requirement.
During the same period, the bank’s capital reached P67.6 billion. (PNA)