RCBC income down 6.4% in 6 months

MANILA, Philippines — A double-digit growth in expenses pulled down the earnings of listed Rizal Commercial Banking Corp. by 6.4 percent to P2.2 billion in the first half from P2.35 billion in the same period last year.

RCBC said the bank’s core income, excluding non-recurring income or trading gains, jumped by 47 percent in the first semester, reflecting the continued robust growth in earnings from core businesses.

“The bank’s trajectory is on an uptrend. We’re above target for the first half of 2018. With the new P15 billion capital raised in July, we will remain focused on growing our lending business especially the consumer and SME, and microfinance business throughout the Philippines,” RCBC president and CEO Gil Buenaventura said.

RCBC said its net interest income booked a double-digit growth of 12 percent.

Even with the intense pricing competition, RCBC still achieved an annualized net interest margin of 3.98 percent that remains one of the highest in the sector.

This was bolstered by the bank’s vibrant lending business with net loans and receivables expanding by 14 percent to P372 billion as all market segments sustained their solid growth with 11 percent growth in corporate loans, 36 percent growth in small and medium enterprises (SME) loans, 17 percent growth in consumer loans, and 33 percent for credit card receivables.