RIZAL Commercial Banking Corp. (RCBC) said its net income for the first quarter of the year went up by 77 percent, boosted by the robust performance of its core business and trading gains.
RCBC’s first quarter bottom line stood at P2.3 billion. Its annualized Return on Equity improved to 11.1 percent and annualized Return on Assets to 1.28 percent.
In a statement, RCBC said gross revenue grew by 23 percent year-on-year to P10 billion as net interest income and non-interest income rose by 19 percent and 29 percent, respectively.
Interest income from loans and receivables grew by 12 percent on the back of strong volume growth and sustained margins across all customer segments.
Cost of funds declined by 71 basis points as the market interest rates normalized during the quarter. Non-interest income also increased by 29 percent, accounted for by higher trading and foreign exchange gains.
The bank’s operating efficiency improved with a cost-to-income ratio of 55.6 percent, compared with 64.2 percent last year.
RCBC said it is facing the coronavirus disease (COVID-19) crisis with P715.3 billion in total assets and P84.7 billion in capital as of March 2020.
“RCBC’s solid capital ratios, CAR of 13.8 percent and CET1 ratio of 12.9 percent, represent its steadfast commitment to serve our customers and provide full banking operations and innovative solutions to its stakeholders, amid unprecedented challenges,” the bank said.
The bank’s small and medium enterprises and consumer loan segments have registered pre-COVID growth of 26 percent and 20 percent, respectively.
The credit card business also expanded, with credit card receivables accelerating by 42 percent, and card base of 914,000 reflecting a 25 percent year-on-year growth.
For clients with credit facilities and loans, RCBC said it has implemented a payment reprieve during the enhanced community quarantine (ECQ).
The bank’s Net NPL Ratio as of March was at 2.2 percent, slightly better than the 2.6 percent recorded in the same period last year. NPL coverage ratio likewise improved to 76.2 percent in March 2020 compared to 67.3 percent in March 2019 “as the bank aims to build sufficient buffers for COVID-related losses.”
RCBC continues to enhance and strengthen its digital capabilities to meet the urgent demand for efficient and convenient banking services amidst limited mobility due to the pandemic.
In a massive digital push, the bank encouraged its client base to shift to digital channels, activating new functionalities that have made transacting more convenient.
“RCBC’s digital solutions are designed to make banking as convenient and as efficient as possible as we acclimatize ourselves with this new normal,” Eugene Acevedo, RCBC president and chief executive officer, said.
“We will continue to utilize and maximize our digital resources to help in every way we can in this war against the pandemic,” Acevedo added.
RCBC has waived online interbank transfer fees via InstaPay and PesoNet during the ECQ and recently, enabled online account opening.
In solidarity with the fight against the pandemic, RCBC responded to the Bayanihan to Heal as One Act by being the first private universal bank authorized by the Bangko Sentral ng Pilipinas to aid in the efforts of the Department of Social Welfare and Development.
The Yuchengco-led bank is now allowed to accept deposits from the agency and help distribute emergency cash aid to beneficiaries though its digital platforms.
The bank is instrumental to the disbursement of the government’s P200 billion emergency subsidy to over 18 million families.
Using mobile terminal called ATM Go, RCBC collaborated with several rural banks, cooperatives, non-governmental organizations and payment collection companies to give the beneficiaries convenient access to their subsidy.
The mobile ATM also continues to be used to disburse conditional cash transfers under the government’s Pantawid Pamilyang Pilipino Program to 70 provinces via over 1,250 ATM Go terminals. Additional 2,000 units will be deployed to reach more barangays.
