Rizal Commercial Banking Corporation (RCBC) closed the first quarter of 2023 with an unaudited consolidated net income of over P3.6 billion, 70 percent higher versus previous year. Annualized return on equity improved to 13.3 percent, while annualized return on assets reached 1.3 percent.
Total resources expanded by 20 percent year-on-year to P1.2 trillion, with the steady build-up of earning assets—customer loans up by 10 percent and investment securities higher by 27 percent. Accounting for 18 percent of asset growth for the period, the Bank’s loan portfolio focused on higher yielding segments, such as SME, higher by 18 percent, consumer loans up by 14 percent and credit card receivables higher by 46 percent.
Credit card billings increased by 67 percent, supported by the enhanced digital platform and features. In addition, data analytics allowed for strong acquisition in the first quarter with 44 percent more new card issuances, while keeping card delinquency rates within industry levels. The Bank’s asset quality also showed marked improvement, returning to pre-pandemic levels at 1.99 percent net NPL as of end-March 2023.
Supporting the asset build-up strategy was the solid increase in deposits by 27 percent to PhP 859 billion, boosted by the 17 percent rise in CASA deposits. The Bank’s comprehensive suite of cash management services and extensive corporate and SME banking relationships continued to provide the uplift in CASA.
“We are reinforcing our sales network to enable wider and efficient coverage, guided by data science and analytics to further understand customer needs and serve them better,” RCBC President and CEO Eugene Acevedo said.
In addition, the Bank’s capital improved by 7 percent, keeping capital adequacy ratios above minimum regulatory requirements. With the upcoming P27.1 billion capital infusion from the Sumitomo Mitsui Banking Corporation (SMBC), the Bank expects 300 to 400 basis points of uplift in CET1 ratios to further support its asset expansion.
