Sumitomo Mitsui Finance and Leasing Co., Ltd. (SMFL) has completed its acquisition of a 30% stake in RCBC Leasing and Finance Corp. (RLFC), the leasing arm of Rizal Commercial Banking Corp. (RCBC), after securing the necessary regulatory approvals.

In a disclosure to the stock exchange on Thursday, RCBC said SMFL had satisfied all requirements for its investment in RLFC, including obtaining approvals and permits from the relevant authorities. Following completion of the transaction, RLFC is now an equity-method affiliate of SMFL. That designation reflects standard accounting treatment: stakes of roughly 20% to 50% are presumed to give the holder significant influence over an investee, requiring the investor to book its share of the affiliate's profits and losses rather than carry the holding as a passive asset.

RLFC President and Chief Executive Officer Jayson L. Mendoza said the investment would support the company's expansion plans over the next three to five years, with growth opportunities seen in manufacturing, construction, information technology, renewable energy, healthcare, logistics, and auto leasing.

"This investment positions us well for the opportunities ahead and strengthens our capabilities that will drive our business forward," Mr. Mendoza said.

The investment is also expected to help SMFL expand its business base in the Philippines by integrating its sales and management expertise with RCBC's customer base and RLFC's existing team and operations.

The acquisition was first announced in August 2025, when SMFL entered into an agreement to purchase the stake through a third-party share issuance. Under that structure, RLFC issued new shares to SMFL rather than RCBC selling existing stock, leaving the bank with a 70% majority stake while the subscription proceeds went to RLFC itself. Prior to the transaction, RLFC was wholly owned by RCBC. Incorporated in 1957, the company is engaged in financial leasing and operating leases through its wholly owned subsidiary.

SMFL is a Japan-based financial services company jointly affiliated with Sumitomo Mitsui Financial Group, Inc. (SMFG) and Sumitomo Corp. Its services include asset and equipment leasing as well as specialized financing for aircraft and ships. Sumitomo Mitsui Banking Corp. (SMBC), a wholly owned subsidiary of SMFG, currently holds a 24.46% stake in RCBC. The transaction also fits a broader pattern of Japanese financial groups building deeper footholds across Southeast Asia in search of growth beyond their mature home market.

In a separate statement, RCBC said its senior management, led by RCBC Chairperson Helen Y. Dee, recently met with SMBC executives led by Toru Nakashima, president and group CEO of parent company SMFG, during an executive visit aimed at reinforcing their partnership.

"The visit provided an opportunity to exchange perspectives on current market conditions and strategic priorities, reaffirming the strong partnership between SMBC and RCBC and their commitment to supporting clients and facilitating business opportunities between Japan and the Philippines," RCBC said.

The bank said its partnership with SMBC has strengthened its ability to support Japanese companies operating in the Philippines through connectivity to SMBC's global network. Japan consistently ranks among the Philippines' largest trading partners and has long been one of its biggest sources of official development assistance.

"It has also enabled greater collaboration across corporate, consumer, digital and retail banking, while creating opportunities for business matching and cross-border connectivity between clients of both institutions," it added.

"As the country celebrates 70 years of diplomatic relations between the Philippines and Japan, RCBC continues to leverage its enduring partnership with SMBC to drive innovation and economic growth. This collaboration empowers RCBC to solidify its market position, delivering top-tier financial solutions specifically tailored to the evolving needs of its clients."

With the transaction closed, RLFC's execution of its three- to five-year expansion plan and the pace of business-matching between Japanese and Philippine clients will be the markers to watch in the partnership's next phase.

RCBC shares closed unchanged at P23 each on Thursday.

— Justine Irish D. Tabile