RCBC Savings bullish amid projected flat auto sales
A unit of Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is optimistic it would continue to book double-digit profit growth this year despite the projected slowdown in motor vehicle sales.
Rommel Latinazo, president of RCBC Savings Bank, said the country’s third largest savings bank in terms of assets is seen registering a double-digit growth in net income this year, albeit at a slower pace than the 34 percent recorded last year.
“I think we will have to take on the higher end of the growth forecast as far as profits are concerned,” he said.
RCBC president and CEO Gil Buenaventura earlier said the listed booking is looking at a conservative five to 10 percent growth in net income this year, slightly lower than the 11.4 percent increase booked last year.
RCBC Savings booked a record profit of P1.35 billion last year due to the strong disbursement for auto and housing loans that account for 96 percent of its consumer business.
The Chamber of Automotive Manufacturers Association of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) are projecting a flat growth in vehicle sales this year with the imposition of higher excise tax under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Vehicle sales reached 476,073 units last year, exceeding the 450,000 target set by the industry. By 2020, the industry sees sales hitting 500,000 units.
“A few days ago, the auto industry sent out a forecast that they see flat sales level in 2018 from a high base. We’ll have to take the cue from them on how that industry would go considering a big chunk of the business is being derived from the auto sales,” Latinazo added.
According to the bank exec, RCBC Savings has “a pretty good coverage of the market” as it has build relations with dealers nationwide.
Aside from auto and housing loans, Latinazo said RCBC Savings is also engaged in salary and personal loans through partnerships with private companies.