RCBC Savings posts lower profit in H1

MANILA, Philippines - RCBC Savings Bank (RSB), the consumer banking arm of the RCBC Group, has recorded a net income of P453 million in the first half of 2014, lower than the P628 million for the same period last year, due to lower trading gains.

Nevertheless, core consumer lending business continued to record strong growth, as net interest income increased 26 percent to P2.1 billion.

Loan portfolio grew 24 percent to P48.9 billion, driven by double-digit expansion in auto and real estate loans.

Low cost deposits likewise expanded 22 percent, allowing the bank to protect its net interest margins amidst increased competition on loan pricing.

Regular fees and commissions increased 24 percent to P492 million, however the continued uncertainties in the financial markets resulted in lower trading gains leading to a decrease in total other income.

Total assets grew 15 percent to P74.7 billion while deposits increased to P65.4 billion, higher by 22 percent from last year.

Net worth stood at P6.8 billion, which translated to a capital adequacy ratio (CAR) of 12.5 percent, above the 10 percent minimum requirement of the Bangko Sentral ng Pilipinas (BSP). 

The bank strengthened marketing efforts for its MyLoans products: MyHome for housing loans, MyWheels for auto loans, and MyBiz for SME loans.

RCBC Savings Bank has also continued to invest in expanding its distribution network.

As of end July, the bank operates 147 branches and extension offices, and 370 ATMs nationwide.