SUMITOMO Mitsui Banking Corp. (SMBC) has raised its stake in Rizal Commercial Banking Corp. (RCBC) as it acquired an additional 4.46% in shares for P6.4 billion.

This brought SMBC’s total ownership in RCBC to 24.46% from 20% previously, RCBC said in a disclosure to the stock exchange on Monday.

“This strengthened alliance provides greater momentum for us to accelerate digital transformation, advance sustainable finance, and deliver enhanced value to our clients and stakeholders,” RCBC President and Chief Executive Officer Reginaldo B. Cariaso said.

He added that the additional investment shows SMBC’s confidence in RCBC’s performance and strategic direction.

“We look forward to building on this momentum and continue to accelerate the bank’s reach and impact, with innovation and customer empowerment at the core,” SMBC President and CEO Akihiro Fukutome said.

The Japanese financial institution entered the Philippine market via its partnership with RCBC that began with a 4.99% equity investment in June 2021. SMBC eventually increased its stake to 20% in July 2023.

SMBC and RCBC have collaborated across various business areas from wholesale to retail banking.

RCBC added that it has the most extensive Japan Desk business among local banks, which reflects its strong relationship with Japanese companies.

“Together with SMBC, this deep-rooted history of collaboration has further enabled RCBC to provide specialized services and insights, catering to the unique needs of its Japanese and Filipino clients and fostering strong bilateral business ties.”

RCBC’s attributable net income rose to P2.83 billion in the third quarter from P1.765 billion in the same period last year.

This brought its nine-month profit to P8.18 billion, up from P6.22 billion the previous year.

RCBC shares went down by P1 or 3.85% to close at P25 apiece on Monday. — BVR

RELATED ARTICLESMORE FROM AUTHOR