RCBC Savings Bank, a thrift bank that is 100-per cent owned by RCBC, will be merged into its parent company, with RCBC as the surviving entity, the bank said in a disclosure to the Philippine Stock Exchange on Tuesday.
RCBC said its Board of Directors approved the proposal to merge the subsidiary into the parent bank subject to regulatory approvals. A special stockholders’ meeting is set on February 26 to submit the merger plan for approval.
“The respective Board of Directors of the Constituent Corporations deemed it prudent and in the best interests of each bank and its respective stockholders that RCBC and RSB engage in a business combination in order to advanced their long-term strategic business interest,” according to the plan merger document.
The merger will take effect on July 1, 2019, following the issuance by the Securities and Exchange Commission of a Certificate of Merger, the bank added.
All the properties of RCBC Savings Bank, real or personal, tangible or intangible, and all receivables due on whatever account, including subscription to shares and choses in action, and all and every interest of due to RSB shall be deemed transferred to RCBC after the merger.
RCBC posted a consolidated net income of P3.2 billion for the nine months ended September 2018.
Excluding non-recurring income, core income grew 42 per cent compared to last year coming from stronger core business led by double-digit growth in net interest income by 12 per cent and in fee-based income by 15 per cent.
The bank’s combined net interest income and fee-based income now comprise 91 per cent of gross income.
“Steadily, RCBC has sustained its core business posting healthy growth in core income despite macro challenges. We are focused on the SME market as part of our strategy to diversify our loan portfolio,” said Gil A. Buenaventure, RCBC President and CEO.