RCBC 2022 profit up 71% as economy recovers

Rizal Commercial Banking Corp. (RCBC) ended 2022 with a 71-percent growth in net profit and a 23-percent increase in earning assets as banking activities picked up with the further reopening of the economy.

In a statement on Monday, the Yuchengco-led company reported its bottom line hit P12.1 billion, supported by its core business units.

Total assets were valued at P1.2 trillion as of end-2022, making it the fifth biggest privately owned bank in the country.

Deposits posted a 27-percent growth, much quicker than the 12-percent industry average. Investment securities, meanwhile, climbed by 70 percent.

“Fee income likewise showed marked improvement of 19 percent from 2021 due to higher retail, bancassurance and digital transactions,” the listed bank noted.

“The credit card business recorded a faster-than-industry growth in billings and balances, while keeping NPL (non performing loans) at its lowest in over a decade,” it added.

Capital adequacy ratio and common equity tier 1 ratio stood at 15.29 percent and 12.33 percent, respectively.
RCBC projects further asset growth with the P27-billion equity infusion from Sumitomo Mitsubishi Banking Corp. (SMBC).

SMBC increased its stake to 20 percent, from about 5 percent,  as RCBC sought to expand its corporate, consumer and retail businesses.

The partnership with Sumitomo would also allow RCBC to upgrade its branches with “digital technology and data-based sales strategies.”

RCBC has a network of 462 branches and 1,352 automated teller machines across the country as of end-2022.