RCBC to survive P1B fine over $81-M bank heist — Fitch

The P1-billion fine imposed on the Yuchengco-led Rizal Commercial Banking Corp. (RCBC) will not likely to have any significant damages on the lender's financial profile, according to international debt watcher Fitch Ratings.

In a statement, Fitch said the penalty "is unlikely on its own to materially weaken the bank's medium-term financial profile, despite being significant relative to its net income."

The Monetary Board last week approved a P1-billion fine against RCBC over the $81 million stolen funds from the account of the Bangladesh Bank with the Federal Reserve Bank in New York.

The fine is said to be the largest amount ever approved as part of the supervisory enforcement of bank regulator Bangko Sentral ng Pilipinas (BSP).

It is also equivalent to roughly 20 percent of RCBC's P5.1-billion net income in 2015.

The bank raked in a P2.61-billion unaudited consolidated net income during the first half of the year on the back of the growth in its core businesses.

"However, the fine is a one-off, and we expect RCBC to remain profitable in 2016. The charge on its own does not significantly weaken the bank's medium-term profitability or its existing capital, funding, and liquidity strengths," Fitch said.

Still, it noted that the fine demonstrates the "firm view" of the BSP on the seriousness of the money laundering scheme.

"In imposing the fine, the Philippine regulator acknowledged RCBC's efforts to improve its anti-money laundering risk management systems and governance. We expect such efforts to continue, which should help to strengthen both RCBC and the banking sector," Fitch said.

Following this development, RCBC has called on the Bangladesh Central Bank to resume its own investigation on the matter, instead of pressing the Philippine Senate to continue its probe.

It also challenged the Bangladesh Bank to take it to court.

Bangladeshi Ambassador to the Philippines John Gomes in July said he expects some $17.75 million to be returned to them "very, very soon"  after Duterte assured him that the Philippines will "do whatever it takes" to hasten the recovery of the stolen funds. — VVP, GMA News