36% 1Q 2022 Profit Jump Reported By RCBC

Rizal Commercial Banking Corporation posted an unaudited consolidated net income of PhP2.1 billion for the first quarter of 2022, higher by 36% than the same period last year. Buoyed by robust core business growth, the Bank's net income continued on an upward trajectory, with a 23% increase from the previous quarter.

Photo Insert: RCBC was named the "Best Digital Bank" by the World Economic Magazine, and the "Outstanding Digital Banking Service Provider" by the Global Business Review Magazine in 2022.

Total gross income expanded by 19% year-on-year to PhP9.9 billion driven by the 25% rise in net interest income. This was on the back of higher-earning assets by 35% as customer loans climbed by 7%, while the investment securities portfolio more than doubled during the period.

Keeping the momentum, the Bank built up loans primarily from the corporate and SME segments, increasing by 8% and 16%, respectively. Supporting this asset growth is the 16% jump in low-cost CASA deposits which led to an uplift in net interest margin to 4.1.%

"We are confident that we can sustain this performance as 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.

Operating expenses increased by a modest 3.4%, helping the cost to income ratio to level at 59%. RCBC reinforced its credit buffer, recognizing PhP1.6 billion in provisions for impairment losses in the first quarter of 2022.

RCBC's total assets rose 20% to PhP962 billion, with loans and receivables and investment securities comprising 56% and 29% of the total, respectively. This growth was propped up with a diversified funding portfolio, boosted by the issuance of ASEAN sustainability bonds in February 2022.

Solid demand from investors resulted in an order book reaching PhP14.8 billion, almost 5x oversubscribed. RCBC's capital base increased to PhP109 billion as of March 2022, with CAR of 14.8% and CETI ratio of 11.7%. Return on equity improved to 8.0% and return on assets stood at 0.9%.

The Bank continued to gain recognition from prestigious local and international award-giving bodies for introducing innovative digital solutions and delivering best-in-class services.

It was named the "Best Digital Bank" by the World Economic Magazine, and the "Outstanding Digital Banking Service Provider" by the Global Business Review Magazine in 2022.

As of year to date, it also bagged 10 other citations in corporate and SME banking, cash management, and retail banking, among other categories.

As of March 2022, RCBC had a total consolidated network of 444 branches, 1,253 automated teller machines, and 1,239 ATM Go terminals strategically located nationwide.

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