Japan’s three megabanks are deepening their ties with the Philippine market through stakes in local banks. In addition to the financial services traditionally offered to Japanese companies through their Manila branches, they are pursuing a strategy of tapping into local banks’ existing customer bases to capture the financial needs of Philippine businesses and individuals.
MUFG Bank, then known as Bank of Tokyo-Mitsubishi UFJ, invested about 36.9 billion pesos in Security Bank in April 2016, acquiring a 20% stake. The bank became an equity-method affiliate, and MUFG’s stake remained at 20% as of the end of March 2026. The aim is to strengthen its local business foundation by combining the local bank’s nationwide branch network with Japan’s international financial capabilities.
Sumitomo Mitsui Banking Corporation (SMBC) has expanded its stake in Rizal Commercial Banking Corporation (RCBC) in stages. It acquired 4.99% in June 2021 and raised this to 20% in July 2023. It then acquired an additional 4.46% for 6.4 billion pesos in December 2025, bringing its total holding to 24.46%. Through RCBC’s corporate and retail customer base, SMBC is signaling a deepening involvement in the Philippine domestic financial market.
Mizuho Bank chose a different path: investing in a digital bank. In February 2022, it announced a stake in Tonik Financial, the Singapore-based parent company of Tonik Digital Bank, which operates in the Philippines. Its initial stake was about 10%. This was an investment through the parent company rather than a direct stake in the bank itself, positioned to capture the spread of smartphone-based deposit and lending services.
| Japanese Bank | Philippine Bank | Stake History / Status | Nature of Relationship |
|---|---|---|---|
| MUFG Bank | Security Bank | Acquired 20% for about 36.9 billion pesos in April 2016; still 20% as of end-March 2026 | Capital and business alliance as a minority shareholder in a major local bank |
| Sumitomo Mitsui Banking Corporation (SMBC) | Rizal Commercial Banking Corporation (RCBC) | 4.99% in June 2021, raised to 20% in July 2023, and to 24.46% in December 2025 | Stepwise expansion of its stake, deepening cooperation in corporate and retail finance |
| Mizuho Bank | Tonik Financial, the parent company of Tonik Digital Bank | Announced a stake in the parent company in February 2022, initially about 10%; the current ratio could not be confirmed for this article | Indirect investment in a Philippine digital bank via its Singapore-based parent company |
What the three banks have in common is that they view the Philippines’ growth not merely as a destination for Japanese companies expanding overseas, but as an investment opportunity in banking itself. As corporate activity and personal consumption expand, so does the financial demand tied to working capital, capital investment, and home purchases. Taking a stake in a local bank is a way to share, as a shareholder, in the profits generated by that growth.
Compared with building an independent branch network from scratch, this approach also offers the advantage of leveraging an existing bank’s customer relationships and knowledge of local conditions. SMBC has stated a policy of using its stake in a local financial institution to expand its business beyond large corporations and into services for individuals and small and medium-sized enterprises.
That said, taking a stake also means sharing not only in the profits of growth but also in any deterioration in performance or decline in investment value. While their approaches differ, Japan’s banks are putting capital into the future of the Philippine economy in an effort to build a long-term earnings base.
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