RCBC sees SME loans growing by at least 9% this year

RIZAL Commercial Banking Corp. (RCBC) expects its loans to small businesses to increase by at least 9% this year as the economy continues to recover from the downturn caused by the coronavirus pandemic.

The bank said in a statement on Tuesday that it sees its small and medium enterprises (SME) loan portfolio growing to at least P101.5 billion this year from P93.4 billion in 2021 “on the back of global economic recovery and the stable outlook for the Philippine banking sector.”

The lender is “optimistic” that the Bangko Sentral ng Pilipinas’ (BSP) accommodative policy “will help safeguard the momentum of economic recovery, while it proceeds in creating its exit strategy from its current liquidity stance,” RCBC SME Banking Group Head Maria Angela V. Tinio said.

“Moving on from a more cautious position during the previous year, and as the economy is now reopening, businesses are resuming and consumer spending is picking up. Lending is seen to accelerate and boost revenues,” Ms. Tinio added.

The BSP has kept benchmark rates at record lows since November 2020 to support the economy’s recovery and is expected to start tightening its stance as early as this week’s meeting or in the second half.

Economic growth in the first quarter accelerated by a higher-than-expected 8.3% annually on strong household spending as lockdowns were eased, the Philippine Statistics Authority reported last week.

It was a reversal from the 3.8% decline in the same period last year and faster than the 7.8% gross domestic product growth logged in the final three months of 2021. The latest print is also within the 7-9% target of the government.

Metro Manila and other provinces have been under the most relaxed Alert Level 1 since April as coronavirus cases in the country have remained low. This has allowed most businesses to resume operations at regular capacity.

RCBC said its SME Banking Group onboarded a “record-high” new accounts in 2021, with new SME accounts growing by 233% year on year.

The group’s current account, savings account or CASA deposit contribution is also expected to grow by 17% this year as more clients tap digital platforms for their transactions.

Ms. Tinio added that cross-selling and product bundling initiatives will likely “build more traction” this year as the bank offers more products and services, business solutions, and cash management solutions to its clients.

“We foresee further intensification of the deposit business this year, with the growing roster of bundled products that combine digital cash management solutions suitable to the needs of SME customers, including the bank’s latest payment solutions PayPortal and CheckScan, as well as the impending launch of the newest payment channel QuickeR Pay,” she said.

RCBC booked a net profit of P7.083 billion in 2021 following the improved performance of its core businesses. This was driven by the normalization of its loan loss provisions.

The lender’s shares closed unchanged at P20.20 apiece on Tuesday. — K.B. Ta-asan