RCBC 1H 2016 Net Income Up 3.3% to PhP2.6B

Makati—(PHStocks)—Rizal Commercial Banking Corp. (PSE: RCB) posted an unaudited consolidated net income of PhP2.61 billion for the first half of 2016, 3.3% higher than the PhP2.53 billion net income reported for the same period last year. Core income excluding the cyclical trading gains increased by 59%. Annualized Return on Equity and Return on Assets stood at 8.8% and 1.1%, respectively.

Total consolidated assets expanded by 6.7% year-on-year to PhP500.33 billion while capital funds was at PhP59.91 billion. The Bank’s CAR of 16.78% was over the BSP minimum requirement of 10% while Common Equity Tier 1 (CET1) ratio of 13.48% also exceeded the minimum CET1 ratio requirement (with capital conservation buffer) of 8.5%.

Total deposits reached PhP8.06 billion, up by 8.2% and represented 66.39% of gross income. Annualized net interest margin (NIM) was sustained at 4.2% in the first half of 2016 principally driven by consumer loans which expanded by 19%. Meanwhile, microfinance lending thru Rizal Microbank continued its consistent climb with outstanding loan portfolio increasing by 105.8%.

The interest income from the lending business accounted for 82.7% of the total interest income of the bank.

The bank’s asset quality remained well-managed with NPL ratios of the parent bank at 0.25% and consolidated bank at 0.84%. NPL Covers of the parent bank and consolidated bank both stood strong at 180.32% and 99.1%, respectively.

Other operating income reached PhP4.08 billion with fee income totaling PhP1.75 billion, representing 14.4% of gross income.

The banks distribution network grew to 477 branches by end of June 2016 from 450 for the same period last year while ATMs increased to 1,443 as of end-June 2016 as compared to 1,232 as of end-June 2015. Meanwhile, the number of RCBC Bankard credit cardholders reached over 500,000 or an increase of 8% year-on-year.

“RCBC’s core income driven by its core businesses is firming up. NIM at 4.2% is one of the highest in the industry, while asset quality remains in check. RCBC remains on track with its long-term goals,” said Gil A. Buenaventura, newly appointed RCBC president and CEO.

As testimony to RCBC’s pursuit of excellence, the bank received numerous awards for its achievements, among which, in 2016, Best Domestic Private Bank and Overall Best Private Bank in the Philippines for five consecutive years since 2012 as voted by high net worth individuals (HNWIs) from Asiamoney Polls; Best Card Offering Category from Retail Banker International Asia Trailblazer Awards 2016 for RCBC Bankard. In 2015, Best CSR and Best Investor Relations Company in the Philippines from Corporate Governance Asia Magazine; Domestic Retail Bank of the Year (Philippines) and SME Bank of the Year (Philippines) from ABF Retail Banking Awards; and Best Credit Card Offering from Cards and Electronic Payments International (CEPI) Asia Awards.

Just recently, RCBC received from Fitch Ratings an upgrade in its Long-Term Issuer Default Rating (IDR), from BB to BB+, and in its Viability Rating (VR) from bb to bb+. RCBC also received a rating upgrade to Baa3 (stable) from Ba2 by Moody’s Investor Services in May 2015.

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