RCBC Nets P3.3B Gain In H1

Rizal Commercial Banking Corporation posted an unaudited consolidated net income of PhP3.3 billion for the first half of 2021, higher by 7.0% from the same period last year.

Photo Insert: RCBC reported strong performance for the first half of 2021.

This was driven by the sustained expansion in the customer loan business which grew by 9%, even as the industry contracted by 2%. The 28% growth in low-cost CASA deposits likewise performed better than the industry.

Investment Securities rose 3.4x, and fee income surged by 47% as investments and retail transactions picked up during the period. RCBC’s solid loan growth despite the industry decline was fuelled by the expansion in the corporate and small and medium enterprise (SME) segments by 10% and 17%, respectively.

Gross Income, net of trading, and FX gains, increased by 13% year on year to PhP16.9 billion on the back of the Bank’s asset build-up strategy and robust fee income growth. The Bank closely managed its operating expenses through business process reengineering and rationalization efforts.

Operating expenses of PhP11.2 billion were marginally higher year on year by 1%. RCBC reinforced its credit buffer, recognizing PhP2.3 billion in provisions for impairment losses in the first half of 2021 which was lower by 55% from the same period last year.

The Bank also continued to provide refinancing support to customers that are severely impacted by the pandemic through its COVID Assistance and Recovery (CARE) Program. Meanwhile, the Bank’s Net NPL Ratio stood at 3.25%. RCBC’s total assets rose by 18% to PhP845.8 billion, with Loans and Receivables and Investment Securities comprising 59% and 21% of the total, respectively.

This growth was supported by the 20% jump in total deposits, and the 23% increase in capital funds with solid capital ratios—CAR of 15.1% and CET1 ratio of 11.8%. Annualized Return on Equity stood at 6.6% and annualized Return on Assets at 0.8%.

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