RCBC posts lower net profit in 2nd quarter
RIZAL COMMERCIAL Banking Corp.’s (RCBC) net income declined by 12.97% year on year in the second quarter due to increased tax expenses, it reported on Monday.
The bank’s attributable net profit stood at P2.25 billion last quarter, down from P2.58 billion in the same period last year, its financial statement disclosed to the stock exchange showed.
This brought RCBC’s net income for the first semester to P4.45 billion, 28.47% lower than the P6.22 billion booked last year.
This translated to a return on average assets of 0.7% at end-June, down from 1.1% at end-2023, and a return on average equity of 5.7% versus 9.5% as of December 2023.
Net interest income in the second quarter increased by 26.04% year on year to P10.19 billion from P8.08 billion, driven by higher interest earnings from both loans and investment securities, which more than offset the increase in interest expenses.
Net interest margin was at 3.7%, up from 3.4% at end-2023.
Other operating income likewise grew by 8.66% to P2.59 billion in the second quarter from P2.38 billion a year prior, mainly on the back of higher earnings from fees and commissions and gains on sold assets.
Meanwhile, operating expenses rose by 6.85% to P7.61 billion from P7.13 billion.
This resulted in a cost-to-income ratio of 61.5%.
RCBC’s profit before tax stood at P3.23 billion in the second quarter, higher than P1.38 billion a year prior.
However, the bank recorded a tax expense of P979 million this year, a reversal of the deferred tax expense worth P1.2 billion booked in the same quarter last year.
Its loans and receivables rose by 2.66% to P667.22 billion at end-June from P649.93 billion at end-2023.
RCBC said its consumer loan portfolio grew by 38% in the first semester, driven by the 53% expansion of its credit card loans, with billings rising by 42%. Auto and home loans likewise increased by 28%.
Personal and salary loans also tripled year on year, it added.
Consumer loans made up 36% of the bank’s loan portfolio as of June, while the remainder went to its corporate and small and medium enterprise clients.
Despite an increase in consumer loans, RCBC’s gross nonperforming loan ratio improved by 14 basis points to 3.77% as of June.
On the funding side, total deposits grew by 0.34% to P959.92 billion at end-June from P957.71 billion in 2023.
This resulted in a loan-to-deposit ratio of 68.2%.
RCBC’s total resources grew by 1.82% to P1.26 trillion at end-June from P1.24 trillion at end-2023.
Total equity stood at P152.1 billion.
Its common equity Tier 1 ratio was at 13.8%, while its risk-based capital adequacy ratio stood at 16.4%.
RCBC President and Chief Executive Officer Eugene S. Acevado said the bank will continue to make innovative use of data and digital technology.
“By combining on-the-ground encounters with data insights, we create a digital customer experience that fuels the remarkable growth we are witnessing,” Mr. Acevedo said.
As of June 30, RCBC had 458 branches, 1,486 automated teller machines, and 6,836 ATMGo terminals nationwide.
Its shares declined by 15 centavos or 0.67% to end at P22.10 apiece on Monday. — AMCS
