MANILA, Philippines–Yuchengco-led Rizal Commercial Banking Corp. grew its first-quarter net profit year-on-year by 20.59 percent to P1.6 billion, citing the strong momentum of its lending business.
Annualized return on equity and return on assets stood at 12.4 percent and 1.5 percent, respectively.
Net interest income contributed P3.6 billion and represented 55 percent of gross income.
RCBC noted that even with the intense pricing competition, it achieved an annualized net interest margin of 4.15 percent, remaining one of the highest in the sector.
The loan book, excluding interbank loans, expanded by 19 percent to P269 billion. All market segments sustained their growth with average loan volumes of corporate, consumer and small and medium enterprise increasing by 21 percent, 18 percent, and 33 percent, respectively.
Microfinance lending thru Rizal Microbank grew its outstanding loan portfolio by 44 percent. The interest income contribution from the lending business increased to 82 percent of total compared to 74 percent for the same period last year.
Despite the sustained growth momentum in loans, the bank said its asset quality remained well managed with consolidated nonperforming ratio at a record low 0.88 percent of total loans. For every P1 of soured loans, the parent bank set aside P1.65 in reserve cover.
Other operating income reached P2.95 billion with securities trading gains contributing P1.72 billion. Total fee based and miscellaneous income increased by 17 percent to P1.23 billion. Improved contributions came from retail banking fees which went up by 67 percent, brokerage commissions which improved by 41 percent, as well as investment banking fees and commissions which increased by 17 percent.–Doris Dumlao-Abadilla