RCBC Q3 profit driven by strong lending growth

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RIZAL COMMERCIAL Banking Corp. (RCBC) said net profit rose 19% in the third quarter amid “vibrant” lending growth.

In a statement to the bourse on Friday, RCBC booked a net profit of P1.1 billion in the third quarter, against P893 million a year earlier.

In the year to date however, net profit fell 2% year-on-year to P3.4 billion.

RCBC said the nine-month performance was mitigated by interest income growth of 11% year-on-year to P13.1 billion at the end of September. This was driven by the bank’s “vibrant” lending business, with total customer loan portfolio expanding 17% to P338 billion.

RCBC’s corporate loans grew 15%, small and medium enterprise loans rose 13%, while credit card receivables were up 28%.

RCBC’s microfinance arm Rizal MicroBank grew its loan portfolio 42% due to “continuous efforts to enhance its current loan products responsive to the needs of its mandated market segments.”

RCBC’s total deposits grew to P374.6 billion at the end of September, up 13% from a year earlier. Current and savings accounts accounted for P219.2 billion, up 10%.

The bank sought to broaden customer reach by opening 26 new branches and deploying 64 new automated teller machines (ATMs) during the period. At the end of September, RCBC had 503 branches and 1,539 ATMs.

The non-performing (NPL) ratio at the end of September was 1.07%.

RCBC’s capital was P65.1 billion at the end of September, with the capital adequacy ratio under Basel III rules at 15.51%, with its common equity ratio at 12.43%.

Annualized net interest margin was 4.3%, up 24 basis points from a year earlier. The annualized return on equity and return on assets stood at 7.16% and 0.85%, respectively.

RCBC president and chief executive officer Gil A. Buenaventura said: “The increase in [current and savings account] deposits and growth in the bank’s total loan portfolio has helped fuel the responsiveness of our products to market demand.” — Karl Angelo N. Vidal