Saturday, February 09, 2008 Bank eyes new branches to get bigger share of market in Cebu
UNIVERSAL bank Rizal Commercial Banking Corp. (RCBC) is planning to open five to six branches this year to strengthen its market presence in Cebu.
RCBC first vice president and central eastern Visayas area deputy head Prudencio Gesta made the announcement last Thursday, saying the bank aims to expand its network, including RCBC Savings Bank (RSB), to a total of 21 this year.
In Cebu, there are currently five RSB branches and 10 RCBC universal banks.
The bank plans to open five to six RCBC universal bank branches this year, following its acquisition of Merchants Savings and Loan Association Inc. from Finman Capital Corp., Gesta said.
He said the company intends to convert three branches of Merchants Bank in Cebu into RCBC outlets within the year.
“The implementation of our plans (in relation to) the three branches of Merchants Bank in Metro Cebu hinges on the approval of the BSP (Bangko Sentral ng Pilipinas) about the acquisition of Merchants Bank by RCBC,” he said, adding that the bank expects the BSP’s nod within two months.
According to the RCBC website, RCBC’s purchase of Merchants Bank, a thrift bank, for P520 million is in the final stage of negotiations.
The sale will include all the assets of the thrift bank, which is reported to reach P723 million.
Merchants Bank was established in 1977. It has 21 operating branches nationwide.
“RCBC will be giving priority to expanding its universal banks because it is engaged in a lot of business conditions, unlike the savings banks where it focuses mainly on consumer banking like housing and car loans,” Gesta said.
While he is aware of RCBC’s plan to also expand its RSB branches, Gesta said he is no longer “privy” to its details.
RCBC is looking at the Asiatown IT Park, the downtown area, South Super Highway and Banawa, all in Cebu City, as possible areas for future branches.
When asked how much RCBC will allocate for the new branches, Gesta said investment costs in renovating a bank, excluding infrastructure development, will range between P3 million to P6 million.
Gesta also announced that the two-story RCBC building within Cebu Business Park will open next month. The building will house the bank’s regional office.
Other than a lending and cash center, the RCBC regional headquarters will feature the bank’s first Internet banking outside of Manila, he added.
RCBC is the country’s fourth largest capitalized private universal bank with 297 branches at present and five other extension offices nationwide, said Gesta. It is a strong player in the remittance business with presence overseas through remittance subsidiaries and tie-ups in North America, Europe and Hong Kong, he added. (MMM)
