RCBC nets P3.01B in H1

Yuchengco-led Rizal Commercial Banking Corp. grew its first-half net profit by 35 percent to P3.01 billion year on year due to a double-digit rise in noninterest earnings and a modest increase in net interest income.

This translated to an annualized return on average equity of 15.43 percent, the bank said in a statement.

Its operating income rose by 15.52 percent to P10.76 billion, while net interest income increased by 2.2 percent to P5.49 billion from year-ago level. Noninterest income—mainly supported by trading gains, trust fees, service fees and commissions—jumped by 33.65 percent to P5 billion.

Consolidated resources grew by 17 percent to P351.45 billion from the level in the same period last year, boosted by a 16.5-percent expansion in net lending to P189.76 billion.

By loan segments, corporate loans grew by 24 percent, small and medium enterprise by 39 percent and consumer loans, 28 percent. For every peso of deposits generated, the bank lent out about 77 centavos.

Total deposits reached P240.87 billion, of which low-cost current account/savings account deposits accounted for P134.34 billion.

Despite competitive pressures, the bank said its net interest margin remained high at 3.8 percent.—Doris C. Dumlao