RCBC expands SME loan portfolio to P8.9 billion in first quarter

MANILA, Philippines - The Yuchengco-owned Rizal Commercial and Banking Corp. (RCBC) has expanded its commercial and small and medium enterprise (SME) loan portfolio to P8.9 billion in the first three months of 2009 from P7.9 billion in end – 2008, despite tightness in the credit markets.

RCBC senior vice president and commercial and SME banking head Reynaldo Orsolino attributed the positive performance to the bank’s rebuilding process and adjustments to the global credit crisis.

“We were able to introduce new policies and put in place the processes necessary to push our SME program forward,” he said.

Among the new policies and structural adjustments implemented were: the application of the credit scoring system for SME accounts; applications to strengthen the SME organization; improved visibility in the market.

“These initial moves laid the foundation for the second phase of SME initiatives, which are ongoing,” he added.

RCBC likewise introduced the country’s first loan origination web portal (i.e. www.getaloan.com.ph) now being used to screen numerous SME loan applicants nationwide. The new web portal has been getting hundreds of unique hits per month.

This was followed up by a loan application monitoring system that allows the bank to track loan referrals at each stage of loan processing (either from branches or through the Internet) and help it better manage small business loans.

“We will use new technology to further improve our presence among the local entrepreneurs and increase our small business loans portfolio,” the Orsolino said.

The commercial bank earlier reported a net income of P780 million in the same period.

Total loans stood at P139.6 billion, a growth of 23 percent as loans to all market segments increased. Loans by the corporate sector grew 45 percent, 30 percent for SME, and 10 percent for the consumer or retail market.

The increases in the lending activities in the commercial and SME markets form part of the bank’s aggressive expansion in the SME, middle and consumer markets.

RCBC likewise acquired thrift bank Merchants Savings and Loan Association Inc. last year, and the Batangas-based JP Laurel Rural Bank this year.

The acquisition extends RCBC’s penetration into Batangas, Laguna and Mindoro Oriental, areas where the rural bank’s branches are located.