Makati—(PHStocks)—Rizal Commercial Banking Corp. (PSE: RCB) posted an unaudited consolidated net income of PhP3.01 billion for the first three quarters of 2014. Excluding trading gains and last year’s extra-ordinary get gains totaling PhP927 million coming from the sale of non-performing assets and equity investments, the PhP3.01 billion net income represents 114% increase in core operating income.
The company continued to strengthen its core businesses with Net Interest Income reaching PhP11.24 billion, up 17% compared to the same period last year. Annualized Net Interest Margin (NIM) improved by 14bps to 4.31% compared to last year’s 4.17%, despite intense pricing competition and low interest rate environment.
The bank’s loan book excluding interbank loans expanded by 20% to PhP244.8 billion with all market segments sustaining their growth momentum. Average loans of corporate, consumer, and SME increased by 21%, 22%, and 36%, respectively. Microfinance lending through Rizal Microbank continued to advance with loan disbursements growing by 21% and outstanding loan portfolio increasing by 65%.
Non-performing loans (NPL) ratio of the parent bank was at 0.49% while consolidated NPL ratio was at 1.08% as of end-September 2014. Parent bank reserve cover also stood strong at 128.37%.
Total fee-based and miscellaneous income continued to be a major source of revenues reaching PhP3.13 billion, accounting for 20% of gross income. Improved contributions came from remittance fees increasing by 48% to PhP215 million; brokerage commissions growing by 47% to PhP413 million, and ATM income growing by 14% to PhP189 million.
Total operating expenses were well-managed at PhP10.37 billion, lower by 1%.
Total deposits expanded by PhP43 billion or 17% to PhP301.85 billion. Low-cost CASA deposits increased by 16% or PhP26.31 billion to PhP191.4 billion, leading to CASA-to-Total Deposits ratio of 63.41%.
Total consolidated resources grew by 11% to PhP433.03 billion, while Capital Funds reached PhP49.11 billion. The bank’s CAR of 15.14% also exceeded the minimum CET1 Ratio (with capital conservation buffer) of 8.5%.
“RCBC remains firmly on-track with its long-term goals. The bank’s focus is on growing the more sustainable business models. Our numbers demonstrated consistent and solid growth in our loans and deposits, whose gains are reflected in our NIM, one of the highest in the industry. We have strengthened the bank’s capital and will continue to do so to support our growth especially in preparation for the coming ASEAN financial integration,” said RCBC president and CEO Lorenzo V. Tan.
The bank’s distribution network grew to 445 branches as of 3Q14 from 431 compared to the same period last year, while ATMs increased to 1,181, up from 1,132 last year. This resulted in a 2.65 branch-to-ATM ratio, one of the highest in the industry.
The bank’s total number of accounts expanded to 6.5 million as of 3Q14, up from 5.6 million in 3Q13.
As affirmation of its pursuit of excellence, the bank recently received awards from the World Finance magazine as the Best Banking Group in the Philippines for three years in a row, and best Commercial Bank in the Philippines. The bank also garnered recognition from the members of the Fund Managers’ Association of the Philippines. In addition, RCBC Bankard won the Credit Card product of the Year Award as announced by Cards International and Electronic Payments International. RCBC Bankard also bagged the Retail Banker International Trailblazer Award in the Product Excellence in Credit Cards category this year.
RCBC is a member of the Yuchengco Group of Companies (YGC), one of the oldest and largest conglomerates in the Philippines and Southeast Asia covering 60 businesses.