RCBC clears P3B in 9 mos

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) posted an unaudited consolidated net income of P3.01 billion for the first three quarters of 2014, 36 percent lower than the P4.71 billion in the same period last year.

But excluding trading gains and last year’s extraordinary net gains totaling P927 million coming from the sale of non-performing assets (NPAs) and equity investments, RCBC registered a 114-percent increase in core operating income.

In a press statement, RCBC president and chief executive officer Lorenzo V. Tan said the bank continued to strengthen its core businesses with net interest income reaching P11.24 billion, up 17 percent versus P9.59 billion in the same period last year.

Annualized net interest margin (NIM) improved in 14 basis points (bps) to 4.31 percent as against 4.17 percent for the same period last year notwithstanding the intense pricing competition and low interest rate environment.

Excluding interbank loans, the bank’s loan book expanded 20 percent to P244.8 billion, with all market segments sustaining their growth momentum.

Average loans of corporate, consumer and SME sectors increased 21 percent, 22 percent, and 36 percent, respectively.

Microfinance lending through Rizal Microbank continued to advance with loan disbursements growing 21 percent and outstanding loan portfolio increasing 65 percent.

 “Our numbers demonstrated consistent and solid growth in our loans and deposits whose gains are reflected in our NIM, one of the highest in the industry,” Tan said.

Non-performing loans (NPL) ratio of the parent bank was at 0.49 percent while consolidated NPL ratio was at 1.08 percent as of end-September 2014.

Total deposits expanded by P43 billion or 17 percent to P301.85 billion. Low-cost checking account-savings account (CASA) deposits increased 16 percent or P26.31 billion to P191.40 billion, leading to CASA-to-total deposits ratio of 63.41 percent.

Total consolidated resources grew 11 percent to P433.03 billion while capital funds reached P49.11 billion.

RCBC currently operates 445 branches and 1,181 ATMs, resulting in a 2.65 branch-to-ATM ratio, one of the highest in the industry.