RCBC net income soars 54% to P3.3 billion

MANILA, Philippines - Yuchengco-ownd Rizal Commercial Banking Corp. (RCBC) recorded an unaudited net income of P3.31 billion last year, 54 percent higher than the P2.15-billion earnings in 2008, the bank said in a statement yesterday.

Net interest income increased 21 percent to P10.2 billion, reflecting the growth in the bank’s core loan business and an improvement in net interest margin.

Non-interest income grew 29 percent due to strong trading gains. Service fees, commissions and other income, which totaled P3 billion, contributed 51 percent to total non-interest income.

Assets expanded to P289 billion while deposits ballooned to P221 billion.

Efficient operating cost management resulted to an improvement in the bank’s cost to income ratio from 69 percent to 60 percent. Operating income expanded by 24 percent to P16.2 billion.

Meanwhile, total deposit grew 12.5 percent to P220 billion, driven by the expansion of low cost deposits by 20 percent.

On Sept. 30, 2009, the bank became the first local bank to issue $85-million worth of negotiable certificates of time deposit.

RCBC bolstered its capitalization base through the P4-billion five-year Lower Tier 2 unsecured subordinated notes last May 15, 2009. This contributed to capital adequacy ratio of 18.47 percent as of end-December.

Customer base swelled to 2.11 million, supported by the bank’s branch expansion and electronic channels.

Branch network reached 338, including the integration of JP Laurel bank branches into the RCBC network. JP Laurel Bank was acquired on February 2009 to complement its acquisition of Merchants Bank as it further strengthens its position in the microfinance business. 

RCBC operates 471 automated teller machines (ATMs), up from 380 in end-2008.     — Ted P. Torres