Rizal Commercial Banking Corporation (RCBC) net income rose 32% year-on-year to P8.2 billion in the first nine months as its consumer loan business continued to expand.
Its return on equity is 6.94% and return on assets is 0.84%, it said in a disclosure to the stock exchange on Tuesday.
Financial details of RCBC were not available till press time.
The bank said its nine-month performance was mainly supported by a 13% growth in its gross customer loans and a 25% increase in its fee income. As a result, it is gross Revenue increased 24% year over year.
Net interest income grew 32% to P40.8 billion in the period, with its net interest margin improving 86 basis points year-on-year to 4.68%.
“This was boosted by expansion in high-yield consumer loans, which grew 33% year-on-year and now accounts for 46% of the bank's total loan portfolio,” RCBC said.
Credit card receivables and personal loans increased by 38%, and auto and home loans combined increased by 29%.
“Continued momentum in the consumer lending segment was driven by the bank's existing customer network as well as continued leveraging of data science and digital channels for selective new customer acquisition,” it said.
Its growing consumer business helped boost its fee income to P7.8 billion amid gains from loan-related transactions, credit card fees and bancassurance activities.
“Our continued momentum in the consumer segment continuesFReginaldo Anthony B., Chairman and Chief Executive Officer of RCBC. “This demonstrates that our thoughtful approach based on data-driven decisions, prudent risk management and collaboration across businesses continues to drive sustainable growth for the bank,” Cariaso said.
Meanwhile, in terms of funding, the bank booked deposits of P997 billion at the end of September, of which 50.4% were low-cost current account, savings account deposits.
This supported RCBC's total assets, which stood at P1.31 trillion in the period.
“This was bolstered by the issuance of a P12.2 billion sustainability bond due in July 2025 as funding costs improved amid a softening interest rate environment,” it said.
Meanwhile, total equity reached P146.68 billion.
RCBC's common equity Tier 1 ratio was 13.27%, while the capital adequacy ratio was 14.15%, well above regulatory requirements.
Its shares closed at P25.05, down 45 centavos or 1.76% on Tuesday. , Aaron Michael C. Cy
