RCBC income rises in Q3
RIZAL COMMERCIAL Banking Corp. (RCBC) booked a higher net income in the third quarter on higher earnings from its core businesses.
The bank’s net income more than doubled (125%) to P2.01 billion in the third quarter from P892 million a year ago, based on its financial report released on Monday.
For the first nine months, its net profit reached P5.338 billion, increasing by 33.4% from the P4.001 billion booked a year earlier.
RCBC’s consolidated return on assets was at 0.87% as of end-September from 0.88% a year ago. Meanwhile, return on equity stood at 6.83%.
Net interest income in the third quarter increased by 10.4% to P7.581 billion from P6.865 billion. The bank’s net interest margin as of end-September was at 4.11%.
Meanwhile, the bank’s other operating income also improved by 24% year on year to P2.021 billion in the three months ended September from P1.631 billion. Both trading and fee income improved from a year earlier, while trust fees declined.
Other operating expenses increased by 5.7% to P5.67 billion in the July to September period from P5.361 billion in the prior year.
RCBC’s provisions for losses decreased by 20.8% to P1.6 billion in the third quarter from P2.019 billion a year ago.
The bank’s loans and receivables increased by 7% to P525.887 billion as of September from P491.284 billion a year ago. Its nonperforming loan ratio was at 3.3% in the period.
Loan growth was mainly supported by the rise in corporate credit as well as in its small and medium enterprise portfolio, RCBC said.
On the other hand, deposit liabilities also grew 17% year on year to P626.885 billion at end-September from P535.788 billion.
“Business momentum continued to accelerate with strong double-digit growth of 13% in customer loans and 30% in low-cost current account, savings account deposits,” RCBC said.
At end-September, the bank’s capital adequacy ratio was at 15.15%, while common equity Tier 1 ratio stood at 12.05%.
“We are excited to further bring fintech innovation across all product lines, as we see a rapid shift in the trajectory of financial services even beyond the pandemic,” RCBC President and Chief Executive Officer Eugene S. Acevedo said.
The lender had a network of 434 branches as of end-September.
RCBC’s shares closed at P20.20 each on Monday, down by 40 centavos or by 1.94%. — L.W.T. Noble
