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RCBC 1Q 2016 Net Income at P1.8 Billion, up 12%
Lending Up By +12%


Rizal Commercial Banking Corporation posted an unaudited consolidated net income of P1.80 billion for the first quarter of 2016, 12.43% higher than the P1.60 billion net income reported for the same period last year. Annualized Return on Equity and Return on Assets stood at 12.24% and 1.43%, respectively.

Net Interest Income reached P4.21 billion, up by 17% and represented 67% of Gross Income. Even with the intense pricing competition, the Bank still achieved an Annualized Net Interest Margin (NIM) of 4.27% which remains one of the highest in the sector and a 12bps improvement over the 4.15% NIM in FY2015.

The Bank's lending business continued its momentum with loan book, excluding interbank loans, expanding by 12% to P302 billion. All market segments sustained their growth with average loan volumes of corporate, consumer, and SME increasing by 15%, 18%, and 13%, respectively. Meanwhile, microfinance lending thru Rizal Microbank continued its consistent climb with outstanding loan portfolio increasing by 119%. The interest income from the lending business accounted for 81% of the total interest income of the Bank.

Despite the sustained growth momentum in loans, the Bank's asset quality remained well-managed with NPL Ratios of the Parent Bank at 0.24% and Consolidated Bank at 0.82%. NPL Covers of the Parent Bank and Consolidated Bank both stood strong at 172.42% and 100.77%, respectively.

Other operating income reached P2.11 billion representing 33% of gross income.

Total deposits reached P317.22 billion while CASA deposits rose to P204.68 billion, translating to CASA-to-Total Deposits ratio of 64.52% as of end-March 2016 as against 63.25% as of end-March 2015.

Total consolidated assets expanded by 9.17% year-on-year to P488.22 billion while Capital Funds improved by 8.93% year-on-year to P59.93 billion. The Bank's CAR of 16.26% was over the BSP minimum requirement of 10% while Common Equity Tier 1 (CET1) Ratio of 13.05% also exceeded the minimum CET1 Ratio requirement (with capital conservation buffer) of 8.50%.

The Bank's distribution network grew to 475 branches by March 2016 from 450 same period last year while ATMs increased to 1,405 in March 2016 compared to 1,208 last year. This resulted in a 2.96 branch-to-ATM ratio, one of the highest in the industry. The Bank's total number of accounts expanded to 7.32 million as of March 2016 from 6.88 million as of March 2015, or a compounded annual growth rate of 27.05% from the 800,000 accounts in 2006.

"We are pleased with our First Quarter 2016 financial results as these numbers clearly demonstrated RCBC's core business uptrend. We will continue to execute our strategies and focus on delivering the quality products and services that our clients deserve," said RCBC Chairperson Helen Y. Dee.

As testimony to RCBC's pursuit of excellence, the Bank received 94 awards since 2010 including 17 in 2015 among which are Best CSR and Best Investor Relations Company in the Philippines from Corporate Governance Asia Magazine, CEO Gender Award where the Bank was awarded for the East Asia Pacific Women in Business Program or the RCBC eWMN from IFC, Domestic Retail Bank of the Year (Philippines) and SME Bank of the Year (Philippines) from ABF Retail Banking Awards, Green Leadership Award from Asia Responsible Entrepreneurship Awards, and Outstanding Respondent for Coordinated Portfolio Investment Survey (CPIS) from the BSP, and Best Credit Card Offering from Cards and Electronic Payments International (CEPI) Asia Awards. In the first quarter of 2016, the bank awarded Best Card Offering Category from Retail Banker International Asia Trailblazer Awards 2016 for RCBC Bankard.

RCBC is a leading financial services provider in the Philippines offering a wide range of banking and financial products and services. RCBC is engaged in all aspects of traditional banking, investment banking, microfinance, retail financing (auto, mortgage and housing loans, and credit cards), remittance, leasing, foreign exchange, and stock brokering.

RCBC received a rating upgrade to Baa3 (stable) by Moody's Investor Services in May 2015 from Ba2 and is rated BB (stable) by Fitch Ratings. RCBC is a member of the Yuchengco Group of Companies (YGC), one of the oldest and largest conglomerates in South East Asia. For more information, please email investor_relations@rcbc.com.