RCBC nets P2.6B

YUCHENGCO-led Rizal Commercial Banking Corp. grew its net profit in the first half by 3.3 percent year-on-year to P2.61 billion, mostly attributed to higher earnings from core lending activities.

In a disclosure to the Philippine Stock Exchange on Wednesday, RCBC said core income excluding cyclical trading gains had increased by 59 percent.

Net interest income rose by 8.2 percent year-on-year to P8.06 billion, accounting for 66.4 percent or the biggest bulk of total earnings.

Net interest margin (NIM) was kept at 4.2 percent, driven by consumer loans which expanded by 19 percent.

“RCBC’s core income driven by its core businesses is firming up. NIM at 4.2 percent is one of the highest in the industry while asset quality remains in check,” the newly-appointed bank president Gil Buevanentura said in a press statement.

“RCBC remains on track with its long-term goals,” he said.

Microfinance lending arm Rizal Microbank expanded its loan book by 105.8 percent year-on-year during the first semester.

Annualized return on equity stood at 8.8 percent while return on assets was at 1.1 percent.