Yuchengco-led Rizal Commercial Banking Corp. (RCBC) grew profits by more than a tenth in the third quarter of the year amid an expansion of lending across all market segments.
As a result, the mid-tier bank’s year-to-date earnings rose by more than a fifth.
For the three-month period ending September, RCBC’s net income reached P1.11 billion representing an increase of 11 percent over the P995 million reported last year for the comparable quarter.
“RCBC is seeking to grow its client base to 12 million in the medium term, with expansion plans in the pipeline and products and services such as retail business lending and MyWallet meant to further tap small investors and target the unbanked,” the firm said in a statement. RCBC is opening 23 more branches before end-2015.
The bank’s core businesses continued to consolidate with net interest income reaching P11.46 billion for the three-month period. Net interest income reached P4 billion, 10-percent higher over the P3.66 billion reported last year for the comparable quarter.
RCBC’s outstanding loan book excluding interbank loans expanded to P280.85 billion with all market segments sustaining their growth momentum.
The corporate, consumer, and small and medium enterprise (SME) segments increased by 19 percent, 17 percent, and 27 percent, respectively, for a total average loan growth of 19 percent.
Despite the robust expansion in loans, enhancements in credit processes and measures led to the decline in the bank’s level of bad loans, the company said.
At the end of September, the bank’s non-performing loans (NPL) stood at 0.27 percent as against 0.49 percent in the same period last year. This was below the industry average of 1.8 percent. Consolidated net NPL ratio was at 0.90 percent as of end-September 2015, an improvement from 1.06 percent the year before.
Meanwhile, total operating expenses were well-managed at P11.1 billion during the nine-month period, up 7 percent year-on-year.
Total deposits expanded by P30 billion or 10 percent to P332.11 billion. Low-cost current and savings account deposits increased by 12 percent or P23.23 billion to P214.63 billion. These deposits accounted for 64.63 percent of RCBC’s funding base, an improvement from 63.41 percent last year.