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RCBC Savings Bank posts higher profit in first half

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RCBC SAVINGS Bank, the thrift banking arm of Rizal Commercial Banking Corp. (RCBC), booked higher earnings in the first six months of the year, keeping the lender on track with its yearend projections.

In a statement, RCBC Savings Bank said its net income in January to June reached P633 million, a 54% growth from the P410 million recorded in the same period a year ago on the back of an 11% increase in its interest income and 41% rise in other income.

Total resources also increased 23% to P114 billion in the six months ended June from P93 billion in the comparable period in 2016. Deposit liabilities stood at P99 billion, up 26% year on year.

RCBC Savings Bank’s total loan book also booked a double-digit growth of 11% year on year in the first semester to P76.5 billion.

Its consumer loan portfolio likewise registered a 14% increase year on year, fuelled by a rise in its mortgage and auto loans.

“The demand for auto and housing loans have been steadily growing, a good indicator that the economy is doing well,” RCBC Savings Bank President and Chief Executive Officer Rommel S. Latinazo was quoted saying in a statement.

“We’ve managed to keep up with the demand through our nationwide coverage, competitive response time, and flexible terms,” he added.

Meanwhile, the thrift lender’s capital stood at P11 billion in the first six months, increasing by 13% and resulting to a 13.44% total capital adequacy ratio.

At end-June, it had a total branch network of 154 and 448 automated teller machines.

Moving forward, the bank’s chief said the bank is looking at further boosting its auto and mortgage lending activities.

“We remain focused on further building our auto and mortgage loans. With that, we are on track to meeting our targets by end of 2017,” Mr. Latinazo said.

RCBC Savings Bank earlier said it wants to continue expanding its provincial footprint this year, with bulk of its new branches to be located outside Metro Manila. — Janine Marie D. Soliman