RCBC earns P2.35 B in H1

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) slipped 10 percent in the first half due to higher expenses.

RCBC reported a net income of P2.35 billion from January to June, about P260 million lower than the P2.61 billion booked in the same period last year.

 “Riding on the wave of the first half performance, the bank embarked on a major brand initiative in July, where a new corporate logo and tagline ‘We Believe in You,’ was officially launched to the public,” RCBC president and CEO Gil Buenaventura said.

Buenaventura said the milestone signals the arrival of a more committed, refreshed and re-energized RCBC that is ready to meet the demands of the ever-changing Philippine banking industry.

“With the simpler, younger and more minimalist new logo, RCBC sets its sights to be more accessible to the younger Filipino depositors, who are looking for better ways to save and grow their money,” he said.

Net interest income of RCBC declined 6.7 percent to P8.6 billion from P8.06 billion, translating in a strong interest margin of 4.26 percent.

The increase, RCBC said, was driven by vibrant lending business with the loan portfolio growing 16 percent to P324 billion due to the 15 percent growth in corporate loans, 26 percent growth in small and medium enterprise (SME) loans, 14 percent growth in consumer loans and 26 percent growth in credit card receivables.

RCBC’s microfinance arm that provides financing for micro and small enterprises (MSMEs) booked a 44 percent surge in its loan book.

The bank’s asset quality remained solid with non-performing loan (NPL) ratio at 1.35 percent and NPL cover at 79.82 percent.

Furthermore, the bank reported a 20 percent increase in total deposits to P382.4 billion in the first half from P319.82 billion in the same period last year.

RCBC’s other operating income declined 7.3 percent to P3.78 billion from P4.08 billion as fee-based earnings fell 8.6 percent to P1.6 billion from P1.75 billion.

Miscellaneous income grew 11 percent, driven by the improved volume from leasing business.

RCBC said operating expenses climbed five percent to P8.7 billion from January to June this year.

Total consolidated resources expanded to P537.1 billion while capital funds stood at P64 billion, translating to a capital adequacy ratio of 15.2 percent and common equity tier -1 ratio of 12.13 percent.

RCBC has a consolidated network of 495 branches and 1,511 ATMs nationwide.