SMBC Raises Stake in Philippines' RCBC to 24.5% in ¥17 Billion Deal

Norbert Gehrke

23 Dec 2025 — 3 min read

Sumitomo Mitsui Banking Corporation (SMBC) has further solidified its foothold in the Southeast Asian market, announcing on Monday the acquisition of an additional 4.46% equity stake in the Philippines' Rizal Commercial Banking Corporation (RCBC).

The transaction, valued at PHP 6.4 billion (approx. JPY 17 billion), raises SMBC’s total shareholding in the Manila-based lender to 24.46%. The deal was executed at a price-to-book ratio (PBR) of 1.0x.

Strategic Expansion in Asia

The investment is a continuation of the "Multi-Franchise Strategy" led by SMBC’s parent company, Sumitomo Mitsui Financial Group (SMFG). The group has been aggressively seeking growth opportunities in emerging Asian markets to offset slow growth in Japan’s mature financial sector.

This move marks the third phase of capital injection into RCBC. SMBC initially acquired a 4.99% stake in June 2021, followed by a significant increase to 20.00% in July 2023, which established RCBC as an equity-method affiliate.

Rationale and Synergy

SMBC cited RCBC’s medium- to long-term growth potential and digital banking advancements as primary drivers for the increased investment. RCBC, a key member of the Yuchengco Group conglomerate, operates the largest "Japan Desk" among local Philippine banks, making it a strategic partner for servicing Japanese corporate clients operating in the region.

According to the release, the deepened partnership aims to enhance support frameworks for cross-border business expansion and generate further synergies in both wholesale and retail banking sectors.

Financial Snapshot

Recent financial data highlights RCBC's upward trajectory. For the first three quarters of 2025 (ending September), RCBC reported a gross profit of JPY 116.9 billion, up from JPY 94.4 billion in the same period the previous year. Net profit for the period also widened to JPY 20.4 billion.

Following this acquisition, the ownership structure of RCBC sees SMBC cementing its position as a major shareholder with 24.46%, while the Yuchengco Group’s holding company, Pan Malayan Management and Investment Corporation, remains the largest shareholder with a 33.92% stake.

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