Yuchengco-led Rizal Commercial Banking Corp. (RCBC) posted a P6.14 billion consolidated net income in the first half this year, a strong 84 percent increase versus P3.3 billion in the same period in 2021.

“We are excited to unlock more business opportunities and make positive disruptions to accelerate our growth and create more value for our customers,” RCBC President and CEO Eugene S. Acevedo said in a disclosure report to the Philippine Stock Exchange (PSE).

The listed big bank said its total resources climbed to P1 trillion during the period, up by 19 percent year-on-year, boosted by the “solid expansion” in its customer loans and treasury assets. Return on equity improved to 9.5 percent and return on assets stood at 1.1 percent.

RCBC reported a 24 percent growth in its gross income to P21.23 billion, driven by an 18 percent increase in its interest income. Its earning assets amounted to P850 billion, boosted by its growing investment securities portfolio which rose by 59 percent.

The banks also posted a 48 percent increase in noninterest income which was underpinned by significant growth in trust, retail, and digital transactions. The value transactions of its mobile app, DiskarTech, grew by 199 percent year-on-year as of end-June, while RCBC Digital rose by 53 percent.

“With the help of data science and analytics, the bank cautiously built-up loans primarily from safe-haven sectors in the corporate, SME, mortgage and credit card segment,” said RCBC.

Meantime, the bank’s cross-selling business continue to expand its credit card portfolio which rose by 27 percent. The bank has 925,000 cardholders to date. RCBC has a long-standing bancassurance business with Sun Life Grepa Financial Inc.

As of end-June, RCBC’s total deposits increased by 24 percent to P739.51 billion, mostly from its low-cost CASA deposits which grew by 18 percent. RCBC’s capital base also increased to P112.05 billion. During the period, the bank’s capital adequacy ratio stood at 15.49 percent while its CET1 ratio was at 12.38 percent, both well above regulatory requirements.

As for operating expenses, this increased by 10 percent because of higher business tax and volume-related expenses. Cost-to-income ratio stood at 58 percent. The bank said its impairment provisions dipped by 20 percent as non-performing loan ratio “eased to 2.73% (percent) on the back of improved credit underwriting and management.”

RCBC currently operates 446 branches, 1,280 automated teller machines, and 1,345 ATM Go terminals.

Manila Bulletin