Makati–(PHStocks)–Rizal Commercial Banking Corporation‘s (PSE: RCB) unaudited Net Income for FY 2011 grew by 18% to record PhP5.01 billion in 2011 from PhP4.25 billion in 2010. Net Interest Income stood at PhP10.75 billion. The Non-Interest Income growth of 15% was mainly supported by Trading Gains, Service Fees, Commissions and Trust Fees, which totaled PhP7.11 billion or 74% of total Non-Interest Income.
The bank continued to build its financial strength following a deliberate strategy of prudent balance sheet management. Total consolidated resources reached PhP345.77 billion, 8.06% higher than the PhP319.99 billion posted in the same period last year. Loans grew to PhP184.67 billion, as the corporate loan book rose by 30%, SME loan book by 37%, and Consumer Loans by 15%. Net interest margin was high at 4.09%.
The Bank’s Non-performing loans (NPL) ratio dropped to 1.47% from the previous year’s 3.1%. NPL provisioning coverage improved to 103.4%. Capital Funds grew by 25.1% to PhP40.55 billion from PhP32.41 billion last year on the back of higher earnings and the PhP5.8 billion Tier 1 equity investments by the International Finance Corporation (IFC) and CVC Capital Partners, one of the top five largest private equity firms in the world.
Capital Adequacy Ratio (CAR) stood strong at 19.31% as of end-2011, with much leeway for asset growth from the minimum regulatory requirement of 10%. Tier 1 ratio of 14.58% also exceeded the BSP’s 6% requirement.
Total Deposits as of end-2011 totaled PhP255.46 billion as the bank continued to focus on growing its low cost CA/SA deposits, which grew by 20.33% while prudently reducing higher costing time deposits. CA/SA to Total Deposits ratio improved to 56.53% in 2011 compared to 50.69% in the same period last year.
Operating Expenses totalled PhP12.15 billion as the bank continued to expand its branch and ATM network in order to increase reach and improve customer convenience. As of end December 2011, the bank’s branch network reached 389 from end-2010’s 371. The bank now has 761 ATMs compared to 609 last year.
The expansion of its distribution channels through increasing the number of its branch and ATM networks, the addition of more features to its electronic banking facilities and partnerships with Mercury Drug which launched the RCBC MyWallet Mercury Drug, all contributed to the growth in CA/SA deposits. Number of customers has reached 3.4 million as of year-end 2011.
Reflective of RCBC’s commitment to excellence, the Bank received 14 Awards in 2011 from World Finance, Asiamoney, and Asian Banking and Finance Magazines for Best Bank, Treasury, and Retail Banking activities including the Most Admired Board of Directors award received during the Asia CEO Awards.
RCBC’s thrust to improve transaction efficiency, and productivity will be supported by a new core banking platform completely operational in 2012. This is also expected to support innovation in product development.
RCBC is a member of the multi-industry conglomerate Yuchengco Group of Companies. It is a strong player in the remittance business with a wide presence overseas through remittance subsidiaries and tie-ups in North America, Europe, the Middle East and Hong Kong.