By James A. Loyola
Rizal Commercial Banking Corporation (RCBC) reported a 41 percent spike in unaudited consolidated net income to ₱4.5 billion for the first nine months of 2019 from the ₱3.2 billion reported for the same period last year.
In a disclosure, the bank said the robust growth was driven by its focus in strengthening core business, consistently generating double-digit growth in net interest income.
Interest income from loans and receivables expanded by 24 percent to ₱24.1 billion on account of higher average loan volume of key select markets.
Loans to consumers, which include mortgage loans, automobile loans, and credit cards, increased by 18 percent to ₱126.3 billion.
Gross outstanding credit card receivables accelerated by 43 percent to ₱27.9 billion as of September 2019 with an active card base of 836,000, higher by 26 percent than last year.
Moreover, loans to small and medium enterprises (SMEs) continued to grow year on year by 20 percent to ₱64.8 billion.
“We see more potential in the fast-growing consumer and SME sectors. We expect them to be 50% of our customer base by next year,” RCBC President and CEO Eugene Acevedo said.
Trading opportunities boosted the Bank’s profitability as it generated ₱7.1 billion in Trading and foreign exchange gains in the nine months ended September 2019.
Likewise, fee-based income increased by 12 percent to ₱3.1 billion, driven by higher revenues from deposit and branch fees, card-related fees, and trust fees.
“Our double-digit income growth is a reflection of the bank’s prudence in tapping the right prospects in the market, while expanding capacity and enhancing customer experience in the core business,” Acevedo added.