RCBC income down 36% to P2.02 B

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) reported a 36-percent drop in net earnings in the first six months of 2014 to P2.02 billion, from P3.18 billion in the same period last year, due to lower trading gains.

Nonetheless, RCBC grew its core businesses, with net interest income reaching P7.58 billion, 23 percent higher than the P6.17 billion last year.

Annualized net interest margin (NIM) improved 20 basis points (bps) to 4.31 percent as against 4.11 percent for the same period last year.

Total gross revenues, excluding trading gains, increased eight percent to P9.85 billion.

RCBC president and chief executive officer Lorenzo V. Tan said deposits and loans continue on an uptrend, asset quality was in check, operating expenses were moderated, and NIM at 4.31 percent remained one of the highest in the industry.

“Net interest income-to-operating expenses ratio has widened from 84 percent in 2012 to 92 percent in 2013 to 110 percent for the first semester of the year. Not only have we shown resiliency during times of financial market volatility but execution and synergy in our business strategies,” Tan added.

Its loan book expanded 18.4 percent to P235.9 billion, with all market segments sustaining growth: corporate (19 percent), consumer (22 percent), and SME (39 percent).

Microfinance lending, through subsidiary Rizal Microbank, continued its uptrend, with loan disbursements growing 24 percent and outstanding loan portfolio increasing 88 percent.

Despite the steady loan growth, RCBC’s asset quality remained well-managed with a non-performing loan (NPL) ratio of 0.50 percent.

Total fee-based and miscellaneous income reached P2.1 billion, accounting for 20 percent of the bank’s gross income.