RCBC earnings slide to P6.2 billion in January-September

MANILA, Philippines —   Rizal Commercial Banking Corp. (RCBC) reported a net profit of P6.22 billion from January to September, 31.1 percent lower compared to the P9.03 billion recorded in the comparable period last year.

For the third quarter alone, earnings of the Yuchengco-led bank went down by 37 percent to P1.77 billion from P2.81 billion in the same quarter last year.

In a regulatory filing, the bank said its lower income during the period was mainly due to a decline in other operating income and foreign exchange losses.

On the other hand, the bank’s net interest income grew by 27.5 percent to P30.9 billion in the nine-month period from P24.25 billion a year ago.

Interest income grew by nearly 22 percent to P58.5 billion driven by the growth in volume and better average yields. Loans and receivables went up by 25.6 percent to P44.8 billion while investment securities increased by 24.5 percent to P12.09 billion.

Meanwhile, interest expense increased by 16 percent to P27.59 billion due to higher deposit liabilities and average costs. Interest expense on bills payable and other borrowings also went up by 17.6 percent to P4.14 billion.

RCBC saw impairment losses of P5.61 billion in the first nine months, 13 percent higher than the P4.96 billion in the same period last year.

The bank’s other operating income contracted by 71 percent to P6.84 billion from P11.7 billion as RCBC posted foreign exchange losses of P2.06 billion, a reversal from the P781 million gains a year ago.

In a statement, the bank said its core income rose by 28 percent due to an 11-percent rise in loans. Loan expansion was driven by the consumer segment, with credit card and personal loans receivables growing by 58 percent as of September.

The lender’s auto loan portfolio also grew by 39 percent as RCBC leveraged new marketing strategies to expand its market reach.

Consumer loans also represented 39 percent of the banks consumer portfolio, while the corporate and small business portfolios made up the remaining 61 percent.

According to RCBC, combining its core strengths with its innovative digital platforms has been key to the growth of its consumer loan portfolio.

“At RCBC, we are committed to fostering growth for Filipino consumers by leveraging digital solutions that make financial services more accessible and convenient,” RCBC president and CEO Eugene Acevedo said.

The Yuchengo-led bank’s capital adequacy ratio was at 16.31 percent while its common equity tier-1 ratio stood at 13.75 percent, well-above regulatory requirements.

As of end September, RCBC had a total consolidated network of 463 branches, 1,482 automated teller machines and 7,013 ATM Go terminals strategically located nationwide.