RCBC nets P4.41B in 2014

YUCHENGCO-led Rizal Commercial Banking Corp.’s net profit last year eased by 16.8 percent to P4.41 billion coming from a higher base of trading gains in 2013.

Excluding trading gains and extraordinary income, RCBC’s core earnings increased by 29 percent in 2014, the bank disclosed to the Philippine Stock Exchange.

Net interest income increased by 13 percent to P14.98 billion. Despite intense pricing competition and low interest rate environment, RCBC noted that its net interest margin improved to 4.3 percent last year from 4.22 percent in 2013, one of the highest in the industry.  

Sustaining the momentum in core lending, RCBC’s net lending to the economy expanded by 21 percent to P259.3 billion.

The bank reported that all market segments had posted robust growth. Average loan volume of the corporate segment grew by 22 percent, consumer by 21 percent, and small and medium enterprise by 35 percent. Microfinance lending through Rizal Microbank also grew its loan book by 45 percent.

RCBC president Lorenzo Tan said: “2014 was a challenging year for the Philippine banking industry especially with the onset of Basel 3 (capital adequacy framework) implementation accompanied by the low interest rate environment. Still, RCBC demonstrated consolidation in its core banking operations with the consistent uptrend in loans and deposits. The bank’s balance sheet position is now stronger than ever with deferred charges already written-off, sale of big-ticket non-performing assets, and more than adequate capital despite a more stringent regulation.”

“The expected entry of Cathay Life Insurance into the bank is an affirmation of RCBC’s viability and long-term growth prospects. We are ready for year 2015 with a revitalized confidence knowing that RCBC has the formidable business fundamentals to face all the challenges ahead,” Tan said.