The Market Monitor Minding the Nation's Business
Listed Rizal Commercial Banking Corp. (RCBC) reported a consolidated net income of P3.86 billion last year with its net interest income of P15.7 billion, accounting for 69 percent of total revenues of P22.81 billion.
RCBC’s return on equity and return on assets stood at 6.4 percent and 0.77 percent, respectively.
Other operating income, representing 31 percent of the total gross income, improved by P270 million to P7.07 billion year-on-year mainly due to higher foreign exchange and trading gains, and miscellaneous income.
Total fees and commissions reached P3.42 billion and accounted for 48 percent of other operating income.
Interest income from the lending business grew by 11.42 percent year-on year.
Net interest margin (NIM) “was still strong at 4.06 percent due to the 18.8 percent growth in consumer loans and the 10.2 percent growth in small and medium enterprise (SME) loans including microfinance,” the company said in a statement.
NPL (non-performing loan) ratios of the parent bank stood at 0.17 percent and consolidated bank at 0.98 percent.
NPL covers of the parent bank and consolidated bank both stood strong at 189.44 percent and 93.78 percent, respectively.
RCBC posted P353 billion in total deposits, growing by P10.72 billion year-on-year with CASA deposits at P205 billion. Current and savings account (CASA)-to-total deposits ratio reached 58.06 percent as of last year.
Total consolidated assets expanded to P521.46 billion, while Capital Funds were at P62.63 billion.
The bank’s capital position remains strong and well above the minimum requirement with a capital adequacy ratio (CAR) of 16.16 percent and common equity tier-1 (CET1) ratio of 12.89 percent.
“2016 has been a very challenging year in the history of RCBC. But through it all, the bank emerged stronger and more resilient, having tested to its full capability all its resources. Now more than ever, RCBC is better-equipped, having instituted stronger measures and controls to protect the interests of all its clients”, RCBC President and CEO Gil Buenaventura said.
RCBC branch and ATM expansion led to the banking business continued growth. Excluding the one-off BSP fine, other operating expenses increased by 7.4% year-on-year to P16.34 billion due to expenditures on expansion encompassing 25 new branches to bring to total 481 bank branches as of end-2016 and 146 additional ATM to 1,488 ATM as of end-2016. This expansion program brought RCBC a 3.09 branch-to-ATM ratio, one of the highest in the industry.
The Bank’s business continued to grow, addressing the various needs of its customers.
The number of RCBC Bankard credit cardholders reached 532,000 or an increase of 6.8% year-on-year. Under Wealth Management Group total assets under management (AUM) expanded by 12.2% to P91.6 billion. For 2017, Wealth Management is looking to breach the P100 billion AUM level.
Rizal MicroBank, the microfinance arm of the Bank that provides financing requirements for micro and small enterprises, posted a profitable operation in 2016 due to impressive loan disbursement total of P1 billion ending with a loan portfolio of P703 million. RIZA LOZADA