Rizal Commercial Banking Corporation posted an unaudited consolidated net income of P3.86 billion for the year ended 2016. Return on Equity and Return on Assets stood at 6.40% and 0.77%, respectively.
Net Interest Income reached P15.7 billion and represented 69.0% of total gross income amounting to P22.81 billion. The interest income from the lending business grew by 11.42% year-on year. Net Interest Margin (NIM) was still strong at 4.06% due to the 18.8% growth in consumer loans and the 10.2% growth in SME loans including microfinance.
Other operating income was up by P270 million year-on-year to P7.07 billion and represented 31.0% of total gross income. This was driven by higher foreign exchange and trading gains, and miscellaneous income. Total fees and commissions reached P3.42 billion and accounted for 48% of other operating income.
Excluding the one-off BSP fine, other operating expenses grew by 7.4% year-on-year to P16.34 billion primarily due to the expansion in the branch and ATM network.
The Bank's branch network grew by 25 branches to 481 as of end-2016 while ATMs increased by 146 to 1,488 as of end-2016. This resulted in a 3.09 branch-to-ATM ratio, one of the highest in the industry.
The Bank's asset quality remained solid with NPL Ratios of the Parent Bank at 0.17% and Consolidated Bank at 0.98%. NPL Covers of the Parent Bank and Consolidated Bank both stood strong at 189.44% and 93.78%, respectively.
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 CAR of 16.16% and CET1 Ratio of 12.89%.
Total deposits at P353.07 billion increased by P10.72 billion year-on-year. CASA deposits reached P204.98 billion, translating to a CASA-to-Total Deposits ratio of 58.06% as of 2016.
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 P1.0 billion ending with a loan portfolio of P703 million.
"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”, said RCBC President & CEO Gil A. Buenaventura.
In 2016, the Bank received various awards including Best Philippine Bank in Foreign Exchange (Forex) Products, Trading and Services, Best Philippine Bank in Fixed Income and Rates Sales and Trading, Best Domestic Private Bank and Overall Best Private Bank in the Philippines from Asia Money, one of the most respected finance publications in the world, and Best Card Offering Category from Retail Banker International Asia Trailblazer Awards. RCBC is rated its BB+ with a Stable outlook by Fitch and Baa3 (or investment grade) with a Stable outlook by Moodys.