RCBC Savings loan portfolio up 21%

MANILA, Philippines - RCBC Savings Bank (RSB) has recorded a 21-percent increase in its loan portfolio, buoyed by the double-digit growth of both mortgage and auto loans.

According to RSB president Rommel S. Latinazo, total loan portfolio ballooned to P39 billion, eclipsing the P35.7 billion at the end of 2012.

Mortgage loans grew 30 percent while auto loans expanded 11 percent. Personal loans and small and medium enterprise (SME) loans likewise grew single digit.

Of the total portfolio, mortgage loans accounted for 48 percent share followed by the 13-percent share of the auto loans. Personal loans took up two percent of the total portfolio while SME loans snatched three percent.

“Our SME loans, although small compared to the mortgage and auto loans, are still significant enough to warrant the formation of a total of 27 lending desks,” Latinazo said.

SME loans were offered just two years ago but interest has been expanding as the economy improved. SMEs reportedly account for almost 86 percent of the licensed businesses in the country.

He also revealed that officials of mother unit – Rizal Commercial Banking Corp. (RCBC) – has given the nod to expand its SME desk even if the universal bank also caters to the same sector.

Meanwhile, net interest income grew by 16 percent to P1.6 billion due mainly to robust loan growth, and its low-cost CASA deposits which increased by 23 percent to P23.9 billion.

“Trading gain likewise rose 21 percent as the bank continued to take advantage of opportunities in the financial markets,” the bank chief executive said.

The thrift bank contained its non-performing loan (NPL) ratio to 2.3 percent despite the growth in loans.  This was also an improvement from an NPL ratio of 3.5 percent for the same period in 2012. 

“The combined favorable loan growth, increase in deposit base and higher trading gains enabled RSB to register a nine-percent growth in net income after tax to P628 million during the first half of the year,” Latinazo said.

This resulted in an improved net worth position to P7.4 billion, which translated to a capital adequacy ratio (CAR) of 16.3 percent, better than 14 percent in the same period last year, and well above the 10-percent minimum requirement of Bangko Sentral ng Pilipinas (BSP).

RSB continued its investments in new business and lending centers, and additional automated teller machines (ATMs).

To date, it operates 142 branches and extension offices, and 321 ATMs nationwide.

“We launched new products during the first half of the year, including the MyWallet pre-paid cash card with no maintaining balance; Access One Mobile, an internet banking facility using your mobile device; the E.VIP Checking Account, which offers clients the convenience of one account which has a checkbook, transaction journal and ATM,” Latinazo said.

He added that RSB also strengthened its marketing efforts for its MyLoans products: MyHome for housing loans, MyWheels for auto loans, and MyBiz for SME loans.