By James A. Loyola
Rizal Commercial Banking Corporation (RCBC) posted an unaudited consolidated net income of P2.2 billion for the first half of 2018, slightly lower than the P2.35 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, RCBC noted that, excluding non-recurring income (trading gains), core income grew 47 percent compared to last year, reflecting continued robust growth in earnings from core businesses.
“The bank’s trajectory is on an uptrend. We’re above target for the first half of 2018. With the new P15-billion capital raised in July, we will remain focused on growing our lending business especially the Consumer and SME, and Microfinance business throughout the Philippines,” said RCBC President Gil A. Buenaventura.
Income from core businesses continued to show progress as net interest income reached P9.7 billion with 12 percent growth year-on-year.
Even with the intense pricing competition, the Bank still achieved an annualized net interest margin (NIM) of 3.98 percent which remains one of the highest in the sector.
This was bolstered by the Bank’s vibrant lending business with Net Loans and Receivables expanding by 14 percent to P372 billion.
All market segments sustained their solid growth with 11 percent growth in corporate loans, 36 percent growth in SME Loans, 17 percent growth in Consumer Loans and 33 percent growth in Credit Card Receivables.
Rizal MicroBank (RMB), the Microfinance arm of the Bank that provides financing requirements for micro and small enterprises, increased its outstanding loan portfolio by 27 percent year on year.
RCBC Bankard has a strong and active card base of 625,000 in the first half of 2018, higher by 16 percent versus the same period last year.
Despite the sustained growth momentum in loans, the Bank’s asset quality remained well-managed with consolidated NPL Ratios of 1.18 percent, better than the 1.35% in the same period last year.