RCBC Savings income hits P1B in 2014

MANILA, Philippines - The RCBC Savings Bank (RSB) has recorded a net income of P1.03 billion in 2014, slightly lower than the P1.15 billion recorded in the previous year.

RSB president Rommel S. Latinazo said the slight decline was due largely to the absence in 2014 of significant trading gains realized in 2013.

“Nonetheless, earnings of 2014 were mainly driven by continuing growth in the bank’s core consumer loan business,” Latinazo said.

Net interest income increased by 19 percent to P4.2 billion, fueled by 19-percent growth in its loan portfolio to P52.6 billion.

This was supported by double-digit expansion in its core consumer business of auto and real estate loans.

“The bank likewise aggressively grew its deposits in tandem with the expansion of its loan portfolio,” Latinazo added.

Total non-interest income declined due to lower trading gains as financial markets offered significantly less trading opportunities.

However, non-interest income, derived from its core consumer lending and retail banking activities, increased by 35 percent.

Total assets grew 22 percent to P80.7 billion while total deposits increased to P69.6 billion, higher by 25 percent from the previous year.

Net worth stood at P8.2 billion, thus translating to a capital adequacy ratio (CAR) of 14.7 percent, above the 10-percent minimum requirement of Bangko Sentral ng Pilipinas.

The bank strengthened marketing efforts for its MyLoans products: MyHome for housing loans, MyWheels for auto loans, and MyBiz for SME loans. RCBC Savings also launched electronic products like the MyWallet Visa cash card, and AccessOne Corporate Internet Banking.

It also launched the ePassbook Premium Plus Savings Account, which offers tiered interest rates. RCBC Savings Bank has also continued to invest in expanding its distribution network.

As of March this year, the consumer bank of the Yuchengco Group operates 150 branches and extension offices, and 390 ATMs nationwide.