RCBC Savings sees profit hitting P1 billion

MANILA, Philippines - RCBC Savings Bank (RSB) said it is confident its net income will break past P1 billion this year.

RSB president and chief executive officer Rommel S. Latinazo said all their business segments have made significant contributions in the first nine months of the year.

“Both our interest and non-interest income segments made strong performances,” Latinazo said. “Our core consumer loans, especially the housing and auto sectors, have moved according to our plans.”

The thrift bank’s net earnings in 2010 amounted to P968 million, or 21 percent more than the P800 million recorded the year before. In the first nine months of 2011, its income was already at P955 million up 20 percent from P803 million in the same period in 2010.

In the first nine months of 2011, net interest income barged into the P2-billion level anew due mainly with “the continuing intensified competitive situation in the consumer finance industry,” Latinazo said.

Loan portfolio stood P35.7 billion as of end-September, led by the mortgage and auto sectors. Housing loans account for 43 percent of total portfolio while 40 percent was mainly auto loans.

In the same period, deposits grew to P47 billion with low-cost deposits accounting for 50 percent, while trust assets stood at P19.9 billion.

Latinazo said that operating expenses was held down at 10 percent as the thrift bank of the Yuchengco Group continued to invest in branch expansion.

RSB presently has 118 branches and is looking to surpass 200 by next year.