RCBC core profit up 19% to P1.1B

Strong growth in loans and deposits boosted Rizal Commercial Banking Corp’s (RCBC) net income by 19 percent in the third quarter to P1.1 billion from a year ago.

RCBC’s core business was lifted by the 19-percent expansion in net interest income and a 14-percent rise in fee-based income.

Consolidated net income as of last September was lower at P3.4 billion against year-ago’s P3.5 billion.

In the first nine months this year, RCBC’s net interest income totaled P13.1 billion, up 11 percent year-on-year, due to strong growth in loans.

Customer loans went up 17 percent year-on-year to P338 billion, with all segments rising across the board, the disclosure said.

Lending to the small and medium enterprises (SMEs) registered the highest growth at 34 percent, followed by credit card receivables, 28 percent; corporate loans, 13 percent; and consumer loans, 13 percent.

The bank said its microfinance arm, the Rizal MicroBank (RMB), grew by 42 percent year-on-year “through continuous efforts to enhance its current loan products, responsive to the needs of its mandated market segments.”

Gross income amounted to P18.6 billion with total Other Operating Income rising 29 percent to P5.4 billion.

The share of fees and commissions income, or those from card-related fees, trust fees, and fees from investments banking and loans, accounted for around 14 percent.

Gross operating income was flat at P13 billion, as the bank increased its branch network by 26 branches and its automated teller machine (ATMs) network.

To date, the bank has a total of 503 branches and 1,539 ATMS, bringing the branch-to-ATM ratio to 3.06, the highest in the industry. RIZA LOZADA