RCBC income up by 18%

NET profits of Yuchengco-led Rizal Commercial Banking Corp. (RCBC) rose by nearly 18% in the nine months ending September, with net interest and non-interest earnings climbing during the period.

In a statement released on Friday, the bank said: “RCBC’s net income for the [January to September period] reached P4.8 billion, 17.65% higher than the P4.08 billion registered in the same period last year.”

This translated to a 16.11% return on equity, or the net income earned as percent of stockholders’ investment and a key measure of performance.

The bank’s shares closed at P46.85 apiece last Friday, 85 centavos or 1.85% higher than their P46 close the previous day.

RCBC’s net interest income jumped by 4.5% to P8.36 billion, accounting for about half of its total income.

Its loan portfolio expanded by 12.95% to P188.54 billion, with corporate loans growing by 13.35%; consumer loans by 28.02%; and loans to small and medium enterprises by 27.67%.

Deposits, meanwhile, grew by 7.02% to P233.61 billion, supported by low cost deposits that accounted for 57% of RCBC’s total deposits.

The bank’s non-interest income, meanwhle, surged by 22.25% to P8.72 billion, buoyed by hefty earnings from securities and foreign exchange trading, which rose by 49%.

Income from service fees and commissions jumped by 10.64% while trust fees climbed by 20.06%.
RCBC’s operating expenses amounted to P9.98 billion in the nine-month period.

The bank’s net interest margin remained one of the highest in the industry at 3.88% as of September, RCBC claimed.
Capital expanded by 6.35% to P43.18 billion. Consolidated assets grew by 13.19% to P352.31 billion

The bank’s capital adequacy ratio (CAR), a measure of a bank’s financial strength, was at 18.52%, nearly twice the central bank’s 10% minimum requirement. Its Tier 1 CAR stood at 13.75%.
RCBC currently has 405 branches and 928 automated teller machines nationwide ready to serve its 4.3 million clients.

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