RCBC income drops 16.7% to P4.41B

MANILA, Philippines - Rizal Commercial Banking Corp. posted an unaudited consolidated net income of P4.41 billion in 2014, 16.7 percent lower than the P5.31-billion earnings in 2013.

However, core income, which excludes trading gains and extraordinary income, increased 29 percent.

RCBC president and chief executive officer Lorenzo V. Tan said 2014 was a challenging year as banks were fulfilling requirements of Basel III, forcing many to tap the capital markets.

“2014 was a challenging year with the onset of Basel III implementation accompanied by the low interest rate environment. Still, RCBC demonstrated consolidation in its core banking operations with the consistent uptrend in loans and deposits,” he said.

Net interest income reached P14.98 billion, up 13 percent from P13.31 billion the prior year.

Even with the intense pricing competition and low interest rate environment, net interest margin (NIM) improved 4.3 percent as against 4.22 percent in 2013.

RCBC sustained the momentum in its core lending as loans, excluding interbank loans, expanded 21 percent to P259.3 billion, with all market segments showing robust growth.

Average loan volume of the corporate segment grew 22 percent, consumer by 21 percent, and SME by 35 percent.

Microfinance lending through subsidiary Rizal Microbank advanced with loan disbursements growing 18 percent and outstanding loan portfolio increasing 45 percent.

Total fee-based and miscellaneous income reached P4.3 billion, accounting for 20 percent of gross income, with remittance fees increasing 35 percent, retail banking commissions growing 23 percent, and ATM income growing 11 percent.

Total deposits reached P315.6 billion while low-cost CASA deposit level reached P196.36 billion leading to CASA-to-total deposits ratio of 62.2 percent.

“The bank’s balance sheet position is now stronger than ever with deferred charges already written-off, sale of big-ticket non-performing assets, and more than adequate capital despite a more stringent regulation,” the RCBC chief executive said.