RCBC earnings up 13%

MANILA, Philippines — Strong loan growth boosted the earnings of listed Rizal Commercial Banking Corp. (RCBC) by 13 percent to P1.1 billion in the first quarter from P1 billion in the same period last year.

RCBC president and chief executive officer Gil Buenaventura said the robust loan growth of 18 percent as well as the continued reduction in non-performing assets led to a double-digit increase in the bank’s net income.

“I am pleased to report that the first quarter 2018 results had a good start to the year. We believe we are well positioned for a strong year, the quarter is on pace with the target income for 2018 and we look forward to carrying this momentum,” he said.

The bank’s net interest income rose by 16 percent to P4.8 billion in the first quarter from P4.1 billion in the same period last year amid its vibrant lending business.

RCBC’s total customer loan portfolio jumped by 18 percent to P370.9 billion as corporate loans grew 14 percent, loans to small and medium enterprises (SMEs) by 40 percent growth in SME loans, consumer loans by 17 percent, credit card receivables by 40 percent.

Its microfinance arm Rizal MicroBank booked a 33 percent increase in its loan book as it continues to provide financing for micro and small enterprises (MSMEs).

On the other hand, RCBC Bankard managed to sustain a strong and active card base, growing by 16 percent to 602,000 in the first quarter of the year.

RCBC’s net non-performing loan ratio improved to 1.17 percent in the first quarter from 1.38 percent in the same quarter last year, while its net interest margin remained strong at 4.07 percent.

It recorded a gross income excluding impairment losses of P6.5 billion. Operating Income amounted to P1.7 billion and accounted for 26 percent of the total gross income, while fees and commissions reached P862 million for a 13 percent share.

Expenses rose 12 percent to P4.7 billion from P4.2 billion as the bank pursued the expansion of its distribution network by selectively opening 19 branches and deploying 78 ATMs mainly in support of its on-going strategy to broaden customer reach and enhance banking convenience.