RCBC earnings slip 3.8% in 9 months

Earnings of Rizal Commercial Banking Corp. ( RCBC) slipped 3.8 percent in the first nine months of last year as it paid half of the P1 billion fine imposed by the Bangko Sentral ng Pilipinas (BSP) after it was used as a conduit in the $81 million bank heist.

The bank’s net income amounted to P3.5 billion from January to September last year, about P140 million lower than the P3.64 billion recorded in the same period last year.

RCBC president and CEO Gil Buenaventura said the bank continues to be resilient despite all the challenges.

Without the one- off item relating to the supervisory enforcement action of the BSP as well as trading gains, RCBC said its consolidated net income would have increased 33 percent in the first nine months last year.

“As early as August of this year, we already recorded in our books the full P1 billion supervisory enforcement action by the BSP. RCBC is ready to rise above and move forward as we endeavor to implement reforms and improvements that will help the bank achieve its long-term objectives,” Buenaventura said.

RCBC’s net interest income inched up 3.5 percent to P11.86 billion from P11.46 billion. The interest income from the lending business grew 11.84 percent year- on year while annualized net interest margin was sustained at 4.12 percent on the back of a 20 percent expansion in consumer loans.

Other operating income climbed 4.4 percent to P5.7 billion from P5.46 billion driven mainly by higher foreign exchange and trading gains, and miscellaneous income.

Total fees and commissions reached P2.57 billion and accounted for 45 percent of other operating income.

Excluding the one-off item arising from the payment of the BSP fine, other operating expenses grew 8.63 percent to P12.06 billion from P11.1 billion primarily due to the expansion in the branches and ATM network.

RCBC said total deposits stood at P332.96 billion from January to September last year, almost unchanged from last year’s P332.11 billion.

The bank’s asset quality remained excellent with nonperforming loan (NPL) ratios of the parent bank at 0.26 percent and consolidated bank at 0.97 percent.