RCBC income plunges by 30 percent
DESPITE sustained core business growth and a higher earning asset base, the net profit of listed Rizal Commercial Banking Corp. (RCBC) shrank to P1.6 billion in the first three months of this year.
The figure was 30.43-percent less than in the first quarter of 2020, when the Yuchengco-led lender earned P2.3 billion.
In a disclosure on Friday, it said net interest income for the first quarter was P6.5 billion, up 2 percent year-on-year, “as the bank continued to build the asset portfolio, supported by lower funding costs.”
Loan growth remained stable at 6 percent, while investment securities increased by 19 percent. Fee income improved by 48 percent in the first quarter, thanks to a rise in fees from investments and retail transactions.
RCBC said it kept a tight watch on operating expenses, resulting in a 2- percent jump year-on-year.
To counter the downward pressure on credit quality caused by the pandemic, the lender said it booked P936 million in provisions for impairment losses in the first quarter of 2021.
“This was 42 percent lower year on year following the significant build-up of reserves in 2020 in anticipation of the uptick in loan defaults,” the bank said.
RCBC’s gross loan portfolio picked up by 7 percent year-on year-to P481.7 billion, owing to growth of 8 percent and 10 percent in the corporate and small and medium enterprise segments, respectively.
The bank added that it helped to offer refinancing assistance to consumers who were seriously affected by the coronavirus disease 2019 (Covid-19) pandemic through its Covid Assistance and
Recovery Program. This resulted in a 3.15-percent net non-performing loans ratio.
Total assets rose by 12 percent to P800.8 billion, with loans and receivables accounting for 61 percent of the total, and investment securities accounting for 15 percent.
As of March 2021, RCBC’s capital base had grown to P102.5 billion, with a capital adequacy ratio of 15.0 percent and a common equity tier 1 ratio of 11.6 percent.
PNB shares dropped by 10 centavos or 0.57 percent to close at P17.50 each on Friday.