RCBC doubles loan provision

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    Rizal Commercial Banking Corp. (RCBC) yesterday said it increased its loan loss provision by 94 percent to P5.2 billion, to account for the higher risks related to the post-lockdown environment to combat the coronavirus disease 2019.

    “The bank is taking on substantial provisions for the first half of the year, as much as 3.5x more than the provisions set aside last year, normalized for extra-ordinary items,” RCBC said in a statement.

    But even with the higher provisions, RCBC reported its unaudited consolidated net income rose 17 percent to P3.1 billion in the first six months of the year.

    RCBC said the growth in net income was primarily driven by the 25 percent increase in gross revenues to P20.9 billion, as net interest income and non-interest income grew by 20 percent and 32 percent, respectively.

    Core business continued its growth momentum complemented by the 49-basis-point improvement in net interest margin to 4.3 percent, the bank added. It also noted favorable market opportunities that resulted in P5.7 billion trading gains for the first half of 2020.