RCBC posts P800-M net income in 2nd quarter

2020 0901 RCBC 03

2020 0901 RCBC 02Rizal Commercial Banking Corp. (RCBC) posted a net income of P800 million in the second quarter on the back of strong trading gains, offset by higher loan loss provisioning.

The bank saw a boost in trading gains last quarter, but this was partly offset by higher provisions that reached P3.6 billion, RCBC Corporate Information Officer Ma. Christina P. Alvarez said in an online press briefing on August 12.

In the first half, RCBC’s net income jumped 17% from a year ago to P3.11 billion, buoyed by double-digit growth in revenues and loans. The lender’s net interest income jumped 20% year on year to P12.794 billion in the first half, while the bank’s other income also increased by 32% to P8.063 billion. Its gains from trading and foreign exchange activities grew 81% to P5.904 billion.

The lender’s loan portfolio expanded by 18% to P480.282 billion in the semester after posting double-digit increases in all three segments. Its net interest margin rose to 4.3% from 3.8% in the same period last year.

The lender’s nonperforming loan (NPL) ratio inched up to 2.2% from 2.1% a year ago while its bad loan cover ratio also rose to 95.4% from 78.6%.

The bank’s operating expenses also inched up 4.8% to P11.01 billion. Meanwhile, deposits grew 19.3% to P499.42 billion, with a 53% current account, savings account ratio.

“It has been a difficult first half of the year, and we remain mindful of the challenges ahead. Hence, we’ve taken prudent steps to cushion the impact of this pandemic and at the same time, to continue serving our fellow Filipinos better by strengthening our digital capabilities, customer relief programs, and partnership with the government and other financial institutions,” RCBC President and CEO Eugene S. Acevedo said in a statement.

Business World

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