Core biz rise boosts RCBC income in Q1

YUCHENGCO-LED Rizal Commercial Banking Corp. (RCBC) said its net income jumped 36 percent during the three months of the year through March to P2.1 billion from last year’s P1.58 billion, buoyed by robust core business growth.

Total gross income expanded by 19 percent year-on-year to P9.9 billion driven by the 25-percent rise in net interest income. This was on the back of higher earning assets by 35 percent as customer loans climbed by 7 percent, while the investment securities portfolio more than doubled during the period, the bank said.

“We are confident that we can sustain this performance as we step up our efforts to strengthen the Bank’s core businesses, and continuously explore opportunities to provide the best customer experience,” RCBC President and CEO Eugene S. Acevedo said.

The bank built up loans primarily from the corporate and small and medium sized enterprises segments, increasing by 8 percent and 16 percent, respectively.

Supporting this asset growth is the 16 percent jump in lowcost CASA (current account, savings account) deposits which led to an uplift in net interest margin to 4.1 percent.

Operating expenses rose 3 percent, helping the cost to income ratio to level at 59 percent. RCBC reinforced its credit buffer, recognizing P1.6 billion in provisions for impairment losses in the first quarter.

RCBC’S total assets rose 20 percent to P962 billion, with loans and receivables and investment securities comprising 56 percent and 29 percent of the total, respectively.

The increase was propped up with a diversified funding portfolio, boosted with the issuance of Asean sustainability bonds last February.

The bank continued to gain recognition from prestigious local and international awardgiving bodies for introducing innovative digital solutions and delivering best-in-class services. It also bagged 10 other citations in corporate and SME banking, cash management and retail banking, among other categories.

As of end March, RCBC had a total consolidated network of 444 branches, 1,253 automated teller machines and 1,239 ATM Go terminals.