THE Monetary Board of the Bangko Sentral ng Pilipinas has approved the acquisition of 96.38 percent of the total outstanding capital stock of Merchant Savings Loan Association Inc. by Rizal Commercial Banking Corp. (RCBC)

In a disclosure to the Philippine Stock Exchange yesterday, the bank, also known as RCBC, said the transaction is equivalent to 5,903,334 common shares. The acquisition was approved by the policy-setting board on May 23.

In the last quarter of 2007, RCBC said it is acquiring Merchant Savings for P520 million from Finman Capital Corp. and heirs to a certain Luis Manapat.

The acquisition is part of Yuchengo-led RCBC’s strategy to expand its branch network.

RCBC and RCBC Savings Bank expects to have a total of 317 branches and close to 300 automated teller machines (ATMs) after the acquisition.

Merchant Savings was established in 1977 and has 21 branches, seven of whic areh are in Metro Manila, while the rest in the provinces. It has eight ATMs.

For the first quarter of the year, RBCB posted a 6.6-percent drop in its net income because of shrinking treasury gains.

The bank reported a net income of P773 million against P828 million a year earlier.

RCBC president Lorenzo Tan said the bank tempered the slowdown in earnings by disposing idle properties and assets ahead of a more difficult securities trading environment.

The bank posted a 56.5-percent growth in net income in 2007 to P3.21 billion, from P2.05 billion in 2006, gaining from asset disposals, income from investments and dividends, commissions and fees, and other income.

SAN FERNANDO, La Union—President Gloria Macapagal-Arroyo on Tuesday ordered that P4 billion of the P18 billion in proceeds from the value-added tax (VAT) on oil this year be set aside for cash subsidies to poor families, loan funds for the “green” conversion of public-utility vehicles and for scholarship assistance.

SPEAKER Prospero Nograles said Tuesday that several legislators from the House of Representatives support his proposal to use pork barrel funds and funds from the Land Bank of the Philippines (LBP) to extend credit facilities for farmers through rural banks.

THE Monetary Board of the Bangko Sentral ng Pilipinas has approved the acquisition of 96.38 percent of the total outstanding capital stock of Merchant Savings Loan Association Inc. by Rizal Commercial Banking Corp. (RCBC)

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