RCBC anticipates surge in consumer loan portfolio
Universal bank Rizal Commercial Banking Corporation (RCBC) is eyeing a surge in its consumer loan portfolio (TLP), from P126 billion in 2023 to P160 billion this year, to be driven by targeted campaigns and innovative special programs.
RCBC’s head for consumer lending group (CLG) expressed confidence in achieving 2024 targets, saying “as the unit with the highest growth target among RCBC’s business units, CLG aims to increase its share of growth even further.”
Loan growth will be driven by campaigns and programs, targeted selling using analytics, new products, upgrading of the existing loan management system, continuous process improvement, and internal sales growth.
RCBC’s monthly booking has recorded a 117-percent year-on-year increase, from P 2.482 billion in January 2023 to P5.4 billion in Jan 2024.
Auto and housing loans registered strong growth in their share in RCBC’s total loan portfolio, aside from other consumer products like credit cards, personal loans, and salary loans.
“That’s how aggressively we are growing the business. We intend to sustain our momentum this year through our strong synergy with one of our biggest shareholders, SMBC [Sumitomo Mitsui Banking Corp,]. SMBC has a specific interest in consumer loans,” De Villa said.
SMBC increased its shareholdings in RCBC in 2023, from 4.999 percent to 20 percent, bringing in P 27.126 billion of new Core Equity Tier 1 (“CET1”) capital to the Bank. This capital infusion is part of the Bank’s capital raising plan to support longterm sustainable asset growth and investments in technology cyber security and human resources.
SMBC is one of the largest banks in Japan and is the commercial banking arm of
Sumitomo Mitsui Financial Group (SMFG), while RCBC is a leading financial services provider in the Philippines, offering a wide range of banking and financial products and services.
RCBC is a member of the Yuchengco Group of Companies (YGC), one of the oldest and largest conglomerates in Southeast Asia.