RCBC on growth trajectory, Q1 2019 Net Income up by 15%
Rizal Commercial Banking Corporation posted an unaudited consolidated Net Income of P1.3 billion for the first quarter of 2019, 15% higher than the P1.1 billion reported for the same period last year. The Bank was able to sustain core business growth with Net Interest Income increasing by 10% and Fee based income by 31%.
The strategy of building on our core business led to a growth in net interest income of 10% to P5.3 billion in the first quarter of 2019, coming mainly from the growth in the average loan portfolio of our key select markets. Loans to small and medium enterprises (SME) grew by 12% to P53.8 billion. Our subsidiary Rizal MicroBank grew its loans to micro and small business enterprises by 20% from a year ago to P1.0 billion.
Loans to consumers, which includes mortgage loans, automobile loans, and credit cards, increased by 12% to P106.9 billion. Gross outstanding credit card receivables accelerated by 31% to P22.3 billion for the quarter with an active card base of 733,000, higher by 22% vs. the same period last year.
Non-interest income for the quarter increased significantly by 71% to P2.9 billion, coming from stronger contributions in treasury-related and fee-based income. The Bank booked P1.4 billion in Trading and FX gains, P1.1 billion in Fee-based Income, which includes card related fees - both credit and debit cards, Trust fees, and Fees on investment banking and loans.
Meanwhile, the Total Operating Expenses increased by 13% to P5.2 billion for the first quarter of 2019 which can be attributed mainly to the significant growth in volume of business as gross revenues jumped 26% year on year.
Total Resources expanded by 14% to P664.7 billion. Total Deposits grew by P21.4 billion year-on-year to P416.0 billion with CASA reaching Php229.2 billion, higher than the end-March 2018 level of Php220.0 billion.The Bank's Capital funds stood at P83.3 billion and well above the minimum regulatory requirement with a CAR of 16.14% and CET1 Ratio of 13.34%.
“We have continued to build on balance sheet strength, with assets of P665Bn supported by P83Bn of capital, as we focus on growing our core business. The process for the merger of RCBC Savings bank with RCBC is underway and is planned to commence in the 2nd half of 2019. ” said Gil A. Buenaventura, RCBC President and CEO.
The Bank recently issued a Peso green bond amounting to P15 billion under its recently established green finance framework. The issuance was oversubscribed, tripling to Php15 billion from the initial Php5 billion. This issue is the first green bond from the Philippines under the ASEAN Green Bond Standards 2018, and is fully aligned with the International Capital Market Association’s Green Bond Principles 2018.
Our commitment to service excellence has resulted to numerous awards from regulators, as well as respectable local and international award giving bodies. The Bangko Sentral ng Pilipinas (BSP) cited the Bank as Outstanding Respondent for Coordinated Portfolio Investment Survey. RCBC also received seven awards for the fixed income category and seven for the equities category, including the Best Equities House, and Best Fixed Income House awards from the Fund Managers Association of the Philippines (FMAP). In the area of Communications and Branding, RCBC received several awards, among them six Quill Awards from the International Association of Business Communicators, the Gold Anvil for the brand refresh campaign, and the recognition as part of the top 10 brand with the Most Improved Brands Health by YouGov.com. RCBC Bankard received the Best Card Offering-Philippines recognition during the 5th International Finance Magazine (IFM) Awards.