RCBC net profit up 13.1% in 1st quarter

Yuchengco-led Rizal Commercial Banking Corp. (RCBC) grew its net profit in the first quarter by 13.1 percent year-on-year to P1.1 billion, driven by higher earnings from lending activities.

Three-month net interest income increased by 16 percent year-on-year to P4.8 billion as RCBC expanded its loan book by 18 percent to P370.9 billion.

All loan market segments sustained a double-digit growth in the first quarter, with corporate loans expanding by 14 percent, small and medium enterprises rising by 40 percent and consumer loans growing by 17 percent. Credit card receivables rose by 34 percent.

“I am pleased to report that the first quarter 2018 results had a good start to the year. Robust loan growth of 18 percent and continued reduction in nonperforming assets helped lead to a double-digit increase in our net income. We believe we are well-positioned for a strong year, the quarter is on pace with the target income for 2018 and we look forward to carrying this momentum,” RCBC president Gil Buenaventura said in a press statement.

Rizal MicroBank (RMB), the subsidiary that provides financing requirements for micro and small enterprises, increased its outstanding loan portfolio by 33 percent year-on-year.

Meanwhile, credit card unit RCBC Bankard kept an active card base of 602,000 in the first quarter, higher by 16 percent from a year ago.

On asset quality, the bank’s net nonperforming loan ratio for the first quarter was at 1.17 percent, better than 1.38 percent in the same period last year. Net interest margin remained strong at 4.07 percent.

Other operating income reached P1.7 billion, or 26 percent of gross income. Fees and commissions, which included card-related fees (credit and debit cards, trust fees and fees on investment banking and loans) were at P862 million, accounting for 13 percent of gross income.

Total resources expanded by 11.3 percent to P585.7 billion. Total deposits grew by P30.2 billion year-on-year to P394.6 billion.

Capital funds stood at P68 billion, well above the minimum regulatory requirement with a capital adequacy ratio of 14.61 percent and core or tier 1 ratio of 11.78 percent to risk assets. —DORIS DUMLAO-ABADILLA