By James A. Loyola
Rizal Commercial Banking Corporation (RCBC) reported that its consolidated net income was flat at P4.3 billion in 2018, same level as the previous year, due to lower trading gains.
In a disclosure to the Philippine Stock Exchange, thebank said it was able to sustain core business growth with net interest income increasing by 14 percent to P20.5 billion in 2018, accounting for 77 percent of total gross income.
Excluding non-recurring income (trading gains), core income grew 26 percent compared to last year coming from stronger core business led by a double-digit growth in net interest income and fee-based income by 7 percent.
The Bank’s combined net interest income and fee-based income now comprise 91 percent of gross income.
RCBC’s strong accrual income comes mainly from customer loanswith net loans and receivables expanding by 12 percent to P398.3 billion. All strategic segments sustained their growth.
Average loan volume of the corporate segment grew by 9 percent, SME segment by 28 percent, Consumer segment by 17 percent with growth in Credit Card Receivables at 32 percent.
Rizal MicroBank (RMB), the Microfinance arm of the Bank that provides financing requirements for micro and small enterprises, increased its average loan portfolio by 17 percent year on year.
Gross income reached P26.5 billion with total non-interest income reaching P6.1 billion or 23 percent of gross income.
Fee-based Income, which includes card related fees – both credit and debit cards, trust fees, and fees on investment banking and loans, accounted for 14 percent of gross income.
“The quality of core earnings continued to improve with robust growth in net interest income and fee income. The Bank’s balance sheet position is now stronger than ever. The success of the Stock Rights Offering is just an affirmation of RCBC’s viability and long-term growth prospect,” said RCBC President and CEO Gil A. Buenaventura.