Manila, Philippines - Rizal Commercial and Banking Corp. (RCBC) reported a five-percent expansion in net income in the first three months of 2011 despite a marked slowing down of economic activity.
From P975 million in the first quarter of 2010, RCBC’s net earnings grew to P1.02 billion, carried by the strong growth in its trust operations, trading and foreign currency, and commissions and fees.
Net interest income remained stable at P2.6 billion while other operating income increased 18.4 percent to P1.8 billion. The growth in other operating income was mainly due to gains from trust fees, which grew 20 percent; trading gains by 32 percent; and commissions and fees by three percent.
RCBC recorded strong growth in the first three months of 2010, mirroring the kind of growth last year. Trading and foreign exchange gains expanded 48.8 percent, commissions and fees by 68.8 percent, and 13.8 percent in service fees.
Capital funds grew 16.9 percent to P36.8 billion from P31.4 billion last year. Last March, the International Finance Corp. (IFC) invested over P2.1 billion or the equivalent 7.2 percent of the common shares of RCBC.
In a press statement, RCBC president and chief executive Lorenzo V. Tan said the universal bank of the Yuchengco Group of Companies will stay focused on its core businesses in consumer, small and medium enterprise (SME), microfinance, and cash management services.
Total consolidated resources reached P311 billion from P283 billion posted in the same period last year.
Net loan portfolio amounted to P155 billion as lending to top corporates grew 8.8 percent.
Total deposits grew slightly to P214 billion from last year’s P202 billion. A strong focus on customer relationships generated gains of more than 12 percent in low-cost fund levels.
RCBC presently operates 356 branches nationwide, complemented by an automated teller machine (ATM) network of 609.
Last year, the bank reported a 28 percent growth in net earnings, or from P3.33 billion to P4.25 billion.