MANILA, Philippines -- Rizal Commercial Banking Corporation (RCBC) is planning to raise P4 billion to P5.5 billion in fresh capital this year to finance the acquisition of small and medium-sized banks.

Lorenzo V. Tan, RCBC president and chief executive, said the Yuchengco-led bank is considering raising Tier-1 capital and is currently in talks with a bank regarding a possible acquisition.

"Hopefully before the year ends," Tan said referring to the planned Tier-1 capital, but declined to name the banks that RCBC is looking to acquire.

Previously, RCBC was reported to be eyeing the Export and Industry Bank, Inc.

RCBC said the additional capital may also come from various sources such as the entry of a strategic investor.

Tan said RCBC is projecting its net income this year to rise by 10% or between P3.6 billion to P3.7 billion from P3.3 billion in 2009.

The bank is also seeing a 10% growth in loans, particularly from consumer and small to medium enterprises markets, and also from larger corporate loans.