RCBC group profit hits P3.5B in 9 months

Rizal Commercial Banking Corp. (RCBC) reported an unaudited consolidated net income of P3.5 billion for the first nine months.

Net Interest Income stood at P11.86 billion and accounted for 67.5 percent of total gross in­come at P17.56 billion.

Annualized Net Interest Margin (NIM) of 4.12 percent was driven by 20 percent expan­sion in consumer loans.

Annualized Return on Eq­uity and Return on Assets stood at 7.82 percent and 0.94 percent respectively.

Other operating income was higher by P237 million year-on-year to P5.7 billion represent­ing 32.5 percent of total gross income.

The growth resulted from foreign exchange and trading gains, and miscellaneous in­come. Total fees and commis­sions reached P2.57 billion.

Core earnings, excluding trading gains and one-off item relating to the Bangko Sentral ng Pilipinas supervisory enforce­ment, increased by 33 percent year-on-year.

Other operating expenses, excluding certain one-off item, grew by 8.63 percent year-on year to P12.06 billion mainly due to expansion in the branches and ATM network.

The Non Performing Loan (NPL) Ratios of the Parent Bank was at 0.26 percent and Consoli­dated Bank at 0.97 percent. NPL Covers of the Parent Bank and Consolidated Bank both stood strong at 171.06 percent and 93.29 percent, respectively.

Total consolidated assets ex­panded to P504.35 billion while Capital Funds were at P60.74 billion. The Bank registered CAR of 16.98 percent and com­mon equity tier 1 (CET1) ratio of 13.64 percent. Total deposits at P332.96 billion increased by P13.14 billion quarter-on-quar­ter. Current and Savings Ac­counts (CASA) deposits reached P198.82 billion translating to CASA-to-Total Deposits ratio of 59.71 percent as of end-Septem­ber 2016.

With 477 branches as of end-September 2016 compared from 448 for the same period last year while the bank also expanded ATMs to 1,475 as of end-September 2016 from 1,295 as of end-September 2015. This resulted to a 3.09 branch-to-ATM ratio, one of the highest in the industry.

Bankard credit cardholders reached 524,000 or an increase of 8.0 percent year-on-year. “RCBC continues to be resilient despite all the challenges. As early as August of this year, we already recorded in our books the full P1 billion supervisory enforce­ment action by the BSP. RCBC is ready to rise above and move forward as we endeavor to imple­ment reforms and improvements that will help the Bank achieve its long-term objectives,” said RCBC President and CEO Gil A. Buenaventura. RIZA LOZADA