RCBC projects 5% profit hike

MANILA, Philippines - The RCBC Savings Bank (RSB) is targeting a modest five-percent growth in net earnings for 2012, after hitting a record high of P1.15 billion in 2011.

The record P1.15-billion net earnings grew by 12.3 percent from the P911 million recorded in 2010. In 2009, net income was recorded at P800 million.

However, RSB president Rommel S. Latinazo said that the modest income target was a cautious approach to the external uncertainties this year, and “unusual earnings.”

Latinazo expressed concern over strong global oil prices and the uncertainties brought about by the eurozone debt crisis.

He admitted that the strong performance of RSB in 2010 was due to one-time non-recurring earnings.

The thrift bank also removed from its list several products and services deemed unproductive while focusing on the small and medium enterprises (SME) sector. “We focused on the core loan banking segments,” the bank chief executive admitted.

“There are a large portion of the SME sector that remain unbanked or under-banked, and RCBC Savings intends to reach out to them this year,” Latinazo said.

The bank’s principal loan portfolio is focused on consumer lending in the auto, mortgage, SME and personal loans. Mortgage loans account for over 50 percent of total portfolio followed by auto loans with over 30-percent share of total.

Last year’s loans grew by almost 6.2 percent, or from P27.4 billion in 2010 to P29.1 billion.

RSB will be placing particular attention this year to the growth sector such as transportation, manufacturing, infrastructure and tourism/tourism-related business.