RCBC eyes 5-10% profit growth

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) expects to book a profit growth of five to 10 percent this year as it aims to take advantage of the growing economy and the massive infrastructure build up of the government.

In a press conference, RCBC president and CEO Gil Buenaventura said the bank has set the conservative target this year after its net income grew 11.4 percent last year.

“We are looking at between five and 10 percent,” he said.

Buenaventura said core businesses would continue to fuel the growth as the bank is expected to track the industry’s lending growth.

Last year, the bank’s net interest income grew by 15 percent to P18 billion as its loan book rose by 16 percent to P353 billion.

All market segments sustained their growth, led by credit card receivables with 29 percent, consumer loans with 15 percent, and corporate loans with 12 percent.

The net interest margin of RCBC improved to 4.24 percent from 4.06 percent.

The bank sees consumer loans growing between 20 and 25 percent this year. The segment accounts for 26 percent of the bank’s loan book followed by the small and medium enterprises (SMEs) segment with 12 percent.

Corporate accounts corner the bulk, or 62 percent, of the bank’s total loan portfolio.

The country’s 10th largest bank in terms of assets raised $300 million as part of the initial tranche of its $2 billion medium term note program.

In a disclosure to the Philippine Stock Exchange (PSE), RCBC said the order book was strongly supported by  a broad base of accounts including asset managers, insurance companies, sovereign wealth funds, banks, and private wealth managers.

About 97 percent was allocated to investors in Asia, particularly the Philippines. The listed bank held roadshow meetings and fixed income investor calls in Singapore and Hong Kong early this week.