RIZAL Commercial Banking Corp. (RCBC) reported its net income went up 13% in the first quarter supported by robust loan growth and reduction in non-performing assets.
The Yuchengco-led lender said its unaudited consolidated net income stood at P1.1 billion, 13.1% higher than the P1 billion reported in the same period last year.
“Robust loan growth of 18% and continued reduction in non-performing assets helped lead to a double-digit increase in our net income,” RCBC President and Chief Executive Officer Gil. A Buenaventura was quoted as saying in a statement on Friday.
The lender grew its loan portfolio by 18% to P370.9 billion during the January to March period, from the year-ago level of P314.7 billion.
RCBC reported “solid” growth across all segments, with corporate loans climbing 14%, small and medium enterprise loans rising 40%, and consumer loans as well as credit cards receivables expanding 17% and 34%, respectively.
This brought the bank’s net interest income 16% higher to P4.8 billion for the first quarter, from the P4.1 billion logged in a comparable year-ago period.
The bank’s net nonperforming loans ratio stood at 1.17%, better than the 1.38% tallied in the same period last year. Net interest margin remained “strong” at 4.07%.
Total gross income, excluding impairment losses, stood at P6.5 billion. Operating income reached P1.7 billion during the first quarter, while fees and commissions, trust fees and fees on investment banking and loans stood at P862 million.
Its total operating expenses increased 12% to P4.7 billion for the first quarter of the year from the P4.2 billion reported last year.
Overall, total assets grew 11.3% to P585.7 billion. Total deposits grew 8% or P30.2 billion to P394.6 billion year-on-year.
The bank’s capital funds reached P68 billion. RCBC’s capital adequacy ratio as well as common equity Tier 1 ratio were at 14.61% and 11.78%, respectively, well above the minimum regulatory requirement.
The listed lender’s microfinance lending business thru Rizal Microbank saw its outstanding loan portfolio increase by 33% from the same period last year.
RCBC Bankard’s card base stood at 602,000 as of end-March, up 16% year-on-year.
“We believe we are well-positioned for a strong year, the quarter is on pace with the target income for 2018 and we look forward to carrying this momentum,” Mr. Buenaventura said.
The Yuchengco-led bank continued to expand its network, opening 19 branches and deploying 78 automated teller machines from April 2016 to March 2017. This brought the consolidated network to 508 branches and 1,580 ATMs, resulting in a 3:11 branch-to-ATM ratio.
In March, RCBC successfully raised $300 million senior unsecured fixed-rate notes via drawdown under its $2-billion medium term note program. This was reopened via a second tranche worth $150 million late last month. — Karl Angelo N. Vidal