RCBC posts 24% profit growth
MANILA, Philippines—Yuchengco-led Rizal Commercial Banking Corp. grew its net profit last year by 24 percent to P6.21 billion on higher interest and fee-based income, and hefty treasury gains.
RCBC also firmed up a deal with International Finance Corp. for the purchase of $100 million worth of additional shares in the bank. A separate agreement was finalized to unload P5 billion worth of non-performing assets (NPAs) to a consortium that also includes IFC.
On its 2012 results, the bank’s profit translated to a return on equity of 15.52 percent and a return on assets of 1.77 percent.
Despite pressures on margins in a record-low interest rate environment, RCBC reported that its net interest income had grown by 6.5 percent to P11.45 billion. The bank ended last year with a loan book of P190 billion, 3 percent higher than the level of loans and receivables booked in 2011.
The growth in RCBC’s lending activities was supported by the expansion in lending to consumers (25 percent), small and medium enterprises (37 percent) and corporate loans (8 percent).
Net interest margin was 3.95 percent, one of the highest in the industry.