RCBC books higher income in 2nd quarter
RIZAL COMMERCIAL Banking Corp. (RCBC) saw its net income jump 29.89% year on year to P2.92 billion in the second quarter from P2.25 billion on the back of higher net interest earnings.
This brought its net profit for the first semester to P5.35 billion, up by 20.18% from P4.45 billion in the same period last year, it said in a disclosure to the stock exchange on Wednesday.
This translated to a return on average equity and a return on average assets of 6.9% and 0.8%, respectively.
RCBC’s net interest income increased by 37.73% year on year to P14.03 billion in the second quarter from P10.19 billion in the same period last year.
This came as its interest income grew by 10.22% to P21.27 billion, driven by higher interest earnings from loans, while its interest expense decreased by 20.54% to P7.24 billion from P9.11 billion.
As a result, net interest margin rose to 4.6% at end-June from 3.9% a year ago.
Meanwhile, RCBC’s other operating income went down to P1.68 billion in the second quarter from P2.59 billion in the same period last year as its foreign exchange losses widened.
On the other hand, operating expenses rose to P8.58 billion from P7.61 billion.
This led to a cost-to-income ratio of 56.6% at end-June.
RCBC’s net loans stood at P763.93 billion as of June, up by 2.89% from P742.5 billion at end-2024. Its nonperforming loan ratio also rose to 2.7% from 2.4% in the period.
On the funding side, total deposits decreased by 3.92% to P982.67 billion at end-June from P1.02 trillion at end-2024.
This translated to a loan-to-deposit ratio of 75.6%.
RCBC’s total assets stood at P1.3 trillion as of June, while equity was at P163.02 billion.
Its capital adequacy ratio was at 16.2% and common equity Tier 1 ratio was at 13.7% at end-June, both up from 16.1% and 13.5%, respectively, at end-2024.
RCBC shares dropped by 35 centavos or 1.38% to end at P25 each on Wednesday. — A.M.C. Sy
