By Karl Angelo N. Vidal
Reporter

ROBINSONS BANK Corp. posted a slightly higher net income in 2018, even as it failed to hit its profit guidance due to higher funding costs.

Based on its annual report posted on the Philippine Dealing System’s website, the Gokongwei-led lender posted a P317.11-million net profit in 2018, up 3.2% from P307.39 million booked a year earlier.

However, Robinsons Bank was not able to hit its P500-million income target for 2018.

“We had lower interest margin due to higher cost of funds in 2018,” Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said in a text message.

The lender’s net interest margin declined to 3.35% last year from 2017’s 3.5% dragged by a rise in funding costs.

The Bangko Sentral ng Pilipinas (BSP) hiked interest rates by a cumulative 175 basis points in five consecutive meetings last year to quell inflation.

Meanwhile, the lender’s net interest income grew 19.8% to P3.57 billion in 2018 from the P2.98 billion logged the previous year. This was on the back of a growth in its loan portfolio and investment securities.

Loans and receivables totalled P68.41 billion last year, up 18.7% from P57.65 billion a year ago, due to “increase in lending activities.”

Its nonperforming loan (NPL) ratio dropped slightly to 0.82% from 0.83% as the bank continued to review and clean up past due loans. NPL coverage ratio improved to 122.54% from 100.56% in 2017.

Robinsons Bank’s total deposits, on the other hand, stood at P95.01 billion in 2018, 5.6% higher than P89.98 billion recorded a year ago

Meanwhile, net service fee and commission income doubled to P264.68 million last year from the 2017’s P124.76 million.

Trading gains slumped to P18.3 million from P184.89 million in 2017, while net foreign exchange gains grew to P174.4 million from P93.51 million.

Meanwhile, total operating expenses also went up 17.3% to P3.66 billion in 2018 from P3.12 billion the prior year.

Overall, assets of Robinsons Bank were at P121.35 billion in 2018, up 15.7% from P104.91 billion in 2017.

In 2018, the lender’s total capital adequacy ratio and common equity Tier 1 ratio declined to 15% and 14.13%, respectively.

Mr. Sarte previously said the bank is eyeing to conduct an initial public offering (IPO) within four years as part of its plan to scale up operations to become a universal bank.

To be granted unibank status, Robinsons Bank has to beef up its capital to meet the P20-billion requirement set by the BSP, which can be achieved through an IPO, a stock rights offer from its investors, or a strategic partnership.

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