Yuchengco-led Rizal Commercial Banking Corp. (RCBC) grew its net profit in the first semester by 23 percent year-on-year to P2.7 billion as hefty trading gains complemented the expansion in earnings from lending and fee-based businesses.
With this first semester performance, RCBC executive vice president Horacio Cebrero said Wednesday that RCBC could post a double-digit increase in net profit for the full year.
For the second quarter alone, RCBC’s net profit surged by 32 percent year-on-year to P1.3 billion.
“First half 2019 is a testament of how RCBC has reestablished its presence and become stronger through the years. We are happy with the double-digit growth in income, as a result of our consistent focus on strengthening the bank’s core business. However, I believe that there is more we can do and achieve. Moving forward, focusing on consumer loans and SME (small and medium enterprise) sector will be key for us to fight our way back,” RCBC president Eugene Acevedo said in a statement.
RCBC’s net interest income rose by 10 percent year-on-year to P10.6 billion. This was driven by higher volume from the consumer and small and medium enterprise (SME) businesses, which compensated for the dip in net interest margin to 3.8 percent.
The bank grew its total loan book by 10 percent year-on-year to P400 billion. Loans to consumers—which included mortgage, automobile and credit card loans—expanded by 18 percent to P120.6 billion. On the credit card business, gross outstanding receivables went up by 37 percent year-on-year to P25 billion with an active card base of 788,000, which rose by 26 percent during the period.
On the funding side, total deposits rose by 6 percent to P22.2 billion. For every peso generated by the bank from deposit-taking and bond issuance, it turned around 80 centavos into earning assets. —DORIS DUMLAO-ABADILLA