Rizal Commercial Banking Corp. (RCBC) announced recently that it achieved double-digit growth in the first 6 months of this year, with the company’s net income rising by 84% on the strength of significant loan growth across all segments.
In a filing to the Philippine Stock Exchange (PSE), RCBC shared that its net income increased by 14% to reach P6.2 billion in the first half of 2023. Its gross income also rose by 10% to reach P23.5 billion, driven by higher loans and deposits, as well as higher fee income from retail transactions and the sale of assets.
IMAGE CREDIT: https://www.rcbc.com
“RCBC continues to perform better than the industry as we focus on high-growth segments and equip our people with digital and data science tools. We are also excited to expand further with the help of our newest shareholder, the Sumitomo Mitsui Banking Corp. (SMBC),” explained Eugene S. Acevedo President and Chief Executive Officer of RCBC.
“We are excited to unlock more business opportunities and make positive disruptions to accelerate our growth and create more value for our customers,” he added.
Growth in all divisions
All loan divisions experienced growth, with SME and consumer lending maintaining its 18 percent growth rate. RCBC’s credit card receivables, meanwhile, rose by 48 percent. Credit card gross billings also increased by 54% as a result of data-driven and tailored marketing initiatives.
RCBC President and CEO Eugene S. Acevedo remarked, “RCBC continues to perform better than the industry as we focus on high growth categories and equip our personnel with digital and data science capabilities.”
“We are also eager to grow even further with the assistance of the Sumitomo Mitsui Banking Corp. (SMBC), our newest stakeholder,” he added.
On July 31, 2023, RCBC reported that it has successfully sold an extra 15.001 percent of its stock to SMBC, now considered one of the biggest banks in the world and in Japan. As a result of the P27 billion capital infusion from SMBC, the capital ratios of RCBC are expected to increase by more than 300 basis points.
The bank also reported that total deposits increased by 22% on an annual basis, with its CASA expanding by 17% on an annual basis due to the expansion of the retail and SME markets outside of Metro Manila. With higher fee income from retail sales and asset sales added to the core business of loans and deposits, total gross income increased by 10% to P23.5 billion.
Better than year-ago levels, the bank produced an annualized return on equity of 11.1 percent and an annualized return on assets of 1.11 percent.