MANILA – Big jumps in loans and trading gains allowed the Yuchengco-led Rizal Commercial Banking Corporation (RCBC) to post a 77-percent increase in net income to PHP2.3 billion in the first quarter of 2020 from PHP1.3 billion during the same period last year,
In a statement, the bank said gross revenues rose by 23 percent on an annualized basis to PHP10 billion, driven by the 19-percent rise of net interest income and 29-percent jump of non-interest income.
Interest income from loans and receivables increased by 12 percent on the back of strong volume growth and sustained margins across all customer segments.
Loans extended to small and medium enterprises (SMEs) rose by 26 percent while consumers’ loans increased by 20 percent during the same period.
Credit card receivables increased by 42 percent while credit card base rose by 25 percent year-on-year to 914,000.
Net non-performing loan (NPL) ratio improved to 2.2 percent from year-ago’s 2.6 percent, while NPL coverage ratio rose to 76.2 percent from 67.3 percent a year ago “as the bank aims to build sufficient buffers for (coronavirus disease) Covid-related losses.”
The bank said it implemented an extension for payment dues falling with the enhanced community quarantine (ECQ), which is from March 16 until May 15, 2020 for Luzon.
The cost of funds went down by 71 basis points “as the market interest rates normalized during the quarter.’
Non-interest income also rose by 29 percent and was driven by increased trading and foreign exchange gains.
The bank’s total assets to date amount to PHP715.3 billion, while capital stood at PHP84.7 billion.
Its capital adequacy ratio (CAR), a gauge of a financial institution’s financial health, stood at 13.8 percent, while the CET1 ratio is at 12.9 percent, both of which are higher than the regulatory requirement of 10 percent and 6 percent.
“(These figures) represent its (RCBC) steadfast commitment to serve our customers and provide full banking operations and innovative solutions to its stakeholders, amid unprecedented challenges,” the bank said.
RCBC president and chief executive officer Eugene Acevedo said they have upped their digital capabilities to address their customers’ need for efficient and convenient banking services, especially during the ECQ.
“RCBC’s digital solutions are designed to make banking as convenient and as efficient as possible as we acclimatize ourselves with this new normal,” he said.
Asked by the Philippine News Agency (PNA) for the growth of digital transactions during the ECQ, Acevedo declined to give figures but indicated optimism for its jump in the coming days.
“We have seen and will continue to see accelerated migration of customers to digital channels during and after the ECQ,” he said. (PNA)
