Rizal Commercial Banking Corporation

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Rizal Commercial Banking Corporation 中華銀行
Type Public (PSE: RCB)
Founded Manila, Philippines (1960)
Headquarters Makati, Philippines
Key people Alfonso T. Yuchengco, Honorary Chairman
Helen Y. Dee, Chairwoman
Cesar E.A. Virata, Corporate Vice Chairman
Lorenzo V. Tan, President and CEO
Products Financial Services
Net income

P5.3 billion PHP (2013) [1]
Market Capitalization = P54.22 billion PHP(2013)

Customers = 6.1 million

Cathay Financial Holding (20%)

industry = Finance and Insurance
Website www.rcbc.com

The Rizal Commercial Banking Corporation (RCBC, PSERCB) was established in 1960 as a development bank and is licensed by the Bangko Sentral ng Pilipinas (BSP) for both commercial and investment banking. It is the Philippines' fifth-largest bank by assets, with total consolidated assets of about P422 billion (or US$9.6 billion) as of end-December 2013.

The RCBC Savings Bank Corporate Center in Bonifacio Global City, Metro Manila - together with the Icon Plaza (left) under construction.


Early years[edit]

RCBC opened for business as a small development bank in 1960, then went through rapid expansion to become the preferred banker to a wide range of markets: the Filipino-Chinese market, the corporate market, locators in the export processing zones, the middle market, and the consumer/ retail market.

In 1964, RCBC marked a significant presence in the Filipino-Chinese business community with the opening of its first branch in Binondo. In 1967, this foothold was strengthened when Ambassador Alfonso T. Yuchengco, founder of the Yuchengco Group of Companies (YGC), assumed the Chairmanship of the board. Because of his strong ties with the Filipino-Chinese business community and the Bank's excellent record in serving this market, the Filipino-Chinese market has remained to be one of the Bank's major market niches.

The 1970s[edit]

In 1973, Chairman Yuchengco deemed it crucial to invite two international banks to raise the level of banking expertise of RCBC in trade financing, international banking, credit control, and systems and procedure to global standards. These were the Continental Illinois National Bank and Trust Co. of Chicago, USA (CONNILL) and The United Financial of Japan. The tie-up with these banks reinforced the role of RCBC among corporate clients who preferred institutions with international banking expertise. Further, the affiliation with The United Financial of Japan opened another market for RCBC: the Japanese market. Together, the corporate, the Filipino-Chinese and Japanese markets account for a substantial share of the Bank's portfolio.

The 1980s[edit]

The period marked the rapid branch expansion for the Bank. While most of its peers were establishing branches within Metro Manila, RCBC pursued branch expansion in key growth areas like the export processing zones. This enabled the bank to tap and forge long-term relationships with the foreign locators especially those in the semiconductor industry.

Anticipating bigger things to come, RCBC successfully listed its shares in the Philippine Stock Exchange in 1986. The following year, RCBC diversified into the retail market with the introduction of private banking, home mortgage, car financing and the RCBC Credit Card.

The 1990s[edit]

The establishment of the RCBC's thrift bank arm - the RCBC Savings Bank in 1996 was an indication of RCBC's strategic thrust of becoming a major player in the retail market. This has been supported by the acquisition of a large thrift bank - the Capitol Development Bank in 1998 and the acquisition of 67% stake in Bankard, a major player in the credit card business in mid-2000.

The expanded branch network of 287 branches and 5 extension offices, the opening of foreign offices in Hong Kong (RCBC International Finance, Ltd.) in 1979, in the US (RCBC California International, Ltd.) in 1993 and in Italy (RCBC Telemoney Europe) in 1995 and affiliations with offshore banks and money transfer agencies, stabilized the position of RCBC in the remittance business. The Bank now accounts for more than 10% of the remittance business.

On top of a highly rewarding banking business, the bank has equity holdings in companies engaged in power generation, automotive assembly, thrift banking, food manufacturing, etc. These companies are deemed leaders in their respective niches and are in industries with long-term growth potentials. RCBC entered into a joint venture agreement with Honda Cars and Mitsubishi Corp. of Japan and the Ayala Group to produce the well-engineered and popular Honda cars for the Philippine market. Together with another Yuchengco Group flagship, the House of Investments, and the Enron Corp., it put up the Subic Power Corp. (SPC), a diesel-fired 116-megawatt power plant built under the Build-Operate-Transfer scheme.

To strengthen its position in the capital market, the bank fully acquired the Philippine Pacific Capital Corp. from its partners and renamed it RCBC Capital Corp. It entered into a joint venture agreement with Isuzu Corp., Mitsubishi Corp. and the Ayala Corp. to form Isuzu Motors Phils. Co., Ltd., which is into the assembly, manufacturing, importation and distribution of AUVs, pick-ups and medium- and big-sized trucks and buses. It has equity participation in Pilipinas Shell Petroleum Corp. In November 1996, RCBC joined Agila Holdings, Itochu and Hacienda Luisita in putting up the Luisita Industrial Park Corp., a 300-hectare industrial park for Japanese investors. Together with Great Pacific Life Assurance Corp., it forged a tie-up (1997) with Japan's largest life insurance company, the Nippon Life Insurance Corp., forming a new joint venture life insurance company - the Nippon Life Insurance Company of the Philippines. Other equity investments of RCBC are in LGU Guarantee Corp, a joint BAP/DBP guarantee institution to cover 85% of local government's unit debts; in Lima Land, Inc., a real estate company involved in the development of a 440 hectare industrial park in Lipa/ Malvar; in KG Investments Holdings, Ltd. with the Koo family and in RCBC Land, Inc., a joint venture between RCBC and Pan Malayan Management and Investments Corporation. The company's maiden project is the RCBC Plaza, the new home of RCBC. The project is a joint venture with the Government (of Singapore) Investment Corporation.


RCBC Automated Teller Machine at 7Eleven store, Baliuag, Bulacan.

RCBC's long-term objectives are to maintain and further enhance its position as one of the leading universal banks in the Philippines, to be a dynamic financial institution that will be the preferred choice of selected target markets, to achieve an optimal increase in the Bank's capital, and to increase shareholder value. To achieve these, the Bank defined the key strategic areas in which efforts and initiatives will be focused on in the highly challenging borderless banking landscape of the new millennium.

First is through leadership in identified markets: economic/ export zones, consumer lending, the middle loan market, treasury services, asset and cash management services for corporate and retail markets and the overseas remittance business. These are growth areas where the bank has core competencies and areas that would complement its core markets, network and affiliations.

Second is through continued synergy with members of YGC and by drawing experience from years of affiliation with the United Financial of Japan. As a member of the YGC group, RCBC forms part of a financial services conglomerate with strong market competitiveness in insurance and other risk management services. Through this alliance, the bank is able to broaden its network and delivery channels inasmuch as the more than 40 companies forming the YGC group present a huge base of existing and potential clients for consumer banking and finance, treasury, trust and investment services. By synchronizing the group's products and services and its marketing and delivery, RCBC will be able to deepen its products and services and provide greater value-added to all its clients. Likewise, RCBC's long years of partnership with one of Japan's and the world's biggest financial conglomerates provided it with the experience and expertise to strengthen competitiveness among Japanese clients and foreign locators in the country's export zones.

Third is through continuing realignment of the Bank's business divisions. By clearly delineating the markets served in each business division, the Bank is able to allocate resources appropriately, strengthen its relationships with key clients and focus business divisions on key areas that will drive revenue growth, enhance distribution capabilities and allow the Bank to offer a broader range of products and services to its target markets.

Fourth, the Bank shall focus on strategies to improve cost efficiency and achieve service excellence. Wherever possible, back office functions and other support processes are moved out of business centers and centralized in processing centers such that business centers become strong competitive sales outlets with seamless support from the back office and information technology systems. To support these initiatives and to provide a platform for the delivery of new products and services, investments in information technology will continue to be a key strategy.

Fifth, the Bank will continue to pursue enterprise-wide risk management initiatives to ensure the Bank's continued strength and viability in the face of multifarious risks that are present in the various core businesses of banking. It will continue to adopt sound corporate governance practices and structure to promote the continued good health of the Bank for the benefit of all stakeholders.

In 2012, RCBC's investment banking arm, RCBC Capital participated in raising a total of P 174.4 billion through 12 Lead and Co-lead roles in the debt and equity capital markets for several issuers. RCBC Capital posted a growth of 94% in its revenues in 2012.

Awards and Recognition[edit]

RCBC's efforts in providing efficient and quality service to customers and the community have been recognized by various institutions with more than 50 recognitions bestowed since 2011. These awards validate RCBC's strategic initiatives and commitment to excellence. Among the awards received were technology related awards from Asian Banking and Finance for Online Banking Initiative of the Year and the Core Banking Initiative of the Year. RCBC was also recognized for its focus on providing quality banking services to specific strategic segments such as the small and medium enterprises (SMEs), micro-entrepreneurs through microfinance, and high-net-worth individuals through private banking services. The Bank's strategic focus on cash management, also earned it the “The Asian Banker Achievement Award for Best Cash Management Bank in the Philippines”. And as validation of the collective work it has done, World Finance recognized RCBC as the “Best Banking Group in the Philippines” in 2013. [2]

For its remarkable performance in the financial markets the Bank received 18 awards from Asiamoney such as The Philippines Best Domestic FX Provider for Financial Institutions”, Overall Best for Interest Rates, Best Domestic provider for Credit – Philippines, Best Pricing and Execution capabilities for interest rates, Best Interest Rates Research and market coverage, and Best Sales Service in Interest Rates Derivatives.

In the area of prepaid card services, Visa International recognized RCBC as the Best Performer in Transaction Number Growth, Payment Volume Growth & Cards-in-Force Growth, and Best Overall Provider of Visa Prepaid Services in the Philippines.


RCBC Savings Bank[edit]

Established in 1996 as the Bank’s consumer banking arm. RSB provides deposit products, real estate loans, auto loans and personal loans. As of end-December 2013, RSB had 145 business centers and 343 ATMs nationwide.

RCBC Forex Brokers Corporation[edit]

Incorporated in 1998. RCBC Forex is primarily engaged in dealing and brokering currencies in foreign exchange contracts with local and international clients.

RCBC Capital Corporation[edit]

RCBC's Investment banking arm which offers a complete range of investment banking and financial consultancy services which include (i) the underwriting of equity, quasiequity and debt securities on a firm or best efforts basis for private placement or public distribution; (ii) the syndication of foreign currency or peso loans; and (iii) financial advisory services.

RCBC Securities, Inc.[edit]

A wholly owned subsidiary of RCBC Capital, is engaged in the electronic and traditional trading of listed securities and in providing corporate and market research.

RCBC Bankard Services Corp.[edit]

A wholly owned subsidiary of RCBC Capital engaged in providing services to the credit card business of the Bank.

Merchants Savings and Loan Association, Inc. (operating under the name & style - Rizal Microbank, a thrift bank)[edit]

Was acquired by RCBC to engage in microfinancing and development of small businesses. Rizal Microbank has 15 microfinance lending branches with operations in Southern Luzon and Mindanao.

RCBC Leasing and Finance Corporation (formely First Malayan Leasing and Finance Corporation )[edit]

A pioneer in the leasing and financing industry in the Philippines as the company started its operations in 1957. RCBC Leasing is a non-bank financial institution with a quasi-banking license granted by the Bangko Sentral ng Pilipinas. It serves the requirements of corporate, commercial and consumer markets through its innovative loans, leases and investment products.


Cognizant of the importance of minimizing the Bank’s carbon footprint, on 28 October 2013, RCBC's microfinance subsidiary, Rizal Microbank opened the very first banking office made of recycled shipping container vans in the Philippines. [3]

See also[edit]

External links[edit]