RCBC posts 21% hike in net profit

MANILA, Philippines - RCBC Savings Bank (RSB) reported yesterday a 21-percent increase in net income to P968 million in 2010 from P800 million in 2009.

RSB is a subsidiary of the Rizal Commercial Banking Corp. (RCBC), which is the universal bank of the Yuchengco Group of Companies.

The thrift bank surpassed its 2009 income performance after just nine months into 2010, by reporting earnings of P803 million. Net earnings in 2008 amounted to P776 million and it was registered at P691 million the year before.

RSB president Rommel S. Latinazo said that the 2010 results encouraged the bank to further leverage on its wide distribution network. “We see the entire branch network of the RCBC Group not only the driver of generating increased CASA (checking account-savings account) deposits but also a major source in expanding the bank’s consumer loan assets,” Latinazo said.

“To further our market reach, we plan to open two new provincial lending centers and five lending desks. We are also set to launch our SME Lending Program by the first semester of this year,” he added.

As of end December 2010, RSB’s total number of business centers was 118, with two new business centers opened for the year and 151 ATMs (115 onsite and 36 offsite).

This year, RSB plans to further grow its distribution network by opening 15 new business centers and installing up to 150 new ATMs across the country.

Meanwhile, return on equity amounted to 14 percent versus the previous year’s 12.5 percent. Return on assets was recorded at 1.8 percent, slightly better than the 1.7 percent recorded in 2009.

Total resources stood at P57.9 billion, or 17 percent higher than the previous level of P49.4 billion.

RSB’s total loan portfolio rose by eight percent from P32.3 billion in 2009 to P34.8 billion in 2010 from P32.3 billion in 2009.

RSB’s total deposit liabilities grew by 17 percent, or from P41.1 billion in 2009 to P48.1 billion in 2010 from P41.1 billion in 2009.

Since 2009, RSB ranked third largest thrift bank in terms of assets, loans, deposits, and capital behind BPI Family Savings Bank and Philippine Savings Bank (PSBank).