RCBC earns 21% more in 9 months

MANILA, Philippines - Earnings of Rizal Commercial Banking Corp. (RCBC) jumped 21 percent in the first nine months on the back of strong growth of its core businesses.

In a disclosure to the Philippine Stock Exchange (PSE), RCBC said its net income amounted to P3.64 billion from January to September, P630 million higher compared to P3.01 billion in the same period last year.

The bank’s net interest income amounted to P11.46 billion in the first nine months on the back of the growth in its outstanding loan portfolio.

RCBC’s loan book excluding interbank loans grew 19 percent to P280.85 billion with 19 percent growth in corporate loans as well as 17 percent rise in consumer lending.

Loans to small and medium enterprises (SMEs) jumped 27 percent, while microfinance lending by Rizal Microbank surged 75 percent.

RCBC president and chief executive officer Lorenzo Tan said the bank’s quarterly net interest income and fee income have been increasing consistently from quarter to quarter this year despite the competitive environment.

“Our businesses are healthy and the numbers will speak for our performance,” Tan said.

The bank’s annualized net interest margin (NIM) stood at 4.16 percent notwithstanding the intense pricing competition and low interest rate environment.

“RCBC’s NIM of 4.16 percent remains one of the highest in the banking sector,” he added.

According to him, the non-performing loans ratio of RCBC declined to 0.27 percent in the first nine months from 0.49 percent in the same period last year despite the robust expansion in loans as well as enhancements in credit process and measures.

The bank’s reserve cover stood at 154.57 percent as of end September.

RCBC’s other operating income grew 24 percent to P5.46 billion as it booked gains from the disposal of investment in amortized cost and securities trading gains amounting to P1.44 billion.

Total fee-based and miscellaneous income jumped 25 percent to P3.9 billion after a 239 percent rise in contributions from investment banking-related fees, the 198 percent jump in bancassurance commissions, and the 150 percent increase in fees from loan-related transactions.

The increase in operating expenses, RCBC reported, was kept at seven percent to P11.8 billion.