RCBC 9-month profit slips 6% to P3.2 billion

MANILA, Philippines — Earnings of Rizal Commercial Banking Corp. (RCBC) slipped six percent to P3.2 billion in the first nine months from P3.4 billion in the same period last year on the back of lower trading gains due to the volatile markets.

RCBC president and CEO Gil Buenaventura said the bank has steadily sustained its core business, posting healthy growth in core income despite macro challenges as it continues to focus on small and medium-sized enterprises (SMEs).

 “We are focused on the SME market as part of our strategy to diversify our loan portfolio. We are very proud of the recognition given to us as the Best Bank for SME by AsiaMoney. This further reinforces our thrust to be the banking partner of choice for our small and medium enterprise clients,” Buenaventura said.

Excluding non-recurring income, particularly trading gains, core income jumped by 42 percent compared to last year coming from stronger core business.

RCBC’s net interest income booked a double-digit 12 percent growth to P14.7 billion as the bank’s loan book rose 12 percent to P379 billion.

Average loan volume of the corporate segment rose nine percent, SME segment by 32 percent, consumer segment by 33 percent as the credit card receivables jumped 33 percent.

RCBC’s microfinance arm Rizal MicroBank increased its average loan portfolio by 20 percent year on year, through continuous efforts to enhance its current loan products responsive to the needs of its mandated market segments.

Despite the sustained growth momentum in loans, the RCBC’s asset quality remained well managed with consolidated non-performing loan (NPL) ratios of 1.22 percent, better than the 1.41 percent in the same period last year.

Gross income reached P19.4 billion with total other operating income reaching P4.7 billion or 24 percent of gross income. Fee-based income including card related fees - both credit and debit cards, trust fees, and fees on investment banking and loans, rose 15 percent and accounted for 15 percent of gross income.

On the other hand, total operating expenses rose 10.7 percent to P14.4 billion in the first nine months from P13 billion in the same period last year with the continued expansion in branch and distribution network as well as higher documentary stamp taxes.

The bank’s footprint grew to 509 branches and 1,593 ATMs nationwide. Its deposit base booked a double-digit 10 percent growth to P410.1 billion. RCBC, the country’s 10th largest bank, recorded a 17 percent increase in total resources to P614.4 billion.