RCBC treasurer Horacio Cebrero III
Yuchengco-led Rizal Commercial Banking Corp. grew its 2019 net profit by 25 percent to P5.4 billion as the expansion in core business was complemented by strong treasury gains.
“RCBC’s strong performance in 2019 sets the stage for the kind of growth we want to see in the future: produced by well-positioned businesses in the key market segments we operate in through innovative products and quality service,” RCBC president and chief executive officer Eugene Acevedo said in a disclosure to the Philippine Stock Exchange on Thursday.
In a press briefing, RCBC treasurer Horacio Cebrero III said while trading gains won’t likely be as bountiful this year compared to last year, RCBC may still sustain a double-digit growth in net profit this year.
Cebrero noted that core businesses accounted for 80 percent of gross revenues, which grew by 35 percent to reach P35.9 billion last year.
Net interest income rose by around 10 percent to reach around P22 billion last year while fee-based earnings rose by 25 percent to P4 billion.
Meanwhile, trading gains amounted to around P7.5 billion last year compared to a very meager level in 2018, noted RCBC corporate planning head Christina Alvarez.
Overall, the bank grew its loan book by 11 percent, driven mostly by the small and medium enterprise (SME) and consumer loan segments, which respectively expanded by 29 percent and 18 percent.
The bank’s return on equity stood at 6.5 percent last year. RCBC aims to boost return on equity to around 10 percent in the coming years.
Cebrero said RCBC was growing its asset base at a substantial level without tweaking or any deterioration in its credit standards.
RCBC’s total resources expanded by 18 percent last year to reach P771.3 billion.
Overall, the bank grew its loan book by 11 percent, driven mostly by the small and medium enterprise (SME) and consumer loan segments, which respectively expanded by 29 percent and 18 percent.
Credit card receivables booked by RCBC Bankard, the fifth largest credit card company in the company in terms of cardholder spending, also surged by 44 percent as the card base grew by 26 percent to 877,000.
“The SME and consumer segments have been the center of much of our expansion. Out continued investments in digital technology and efforts in process improvement are focused on servicing these customers better. We are all set to unlock the potential of these markets,” Acevedo said.
RCBC also expanded its investment securities portfolio by 36 percent last year.
Cebrero added that RCBC may also return to the local and offshore bond market this year to refinance about P22 billion bond maturities. On the offshore market, a total of $600 million bonds are maturing in 2021.