RCBC Savings Bank, the thrift bank arm of Rizal Commercial Banking Corp., said it expects a 20-percent growth in loans this year, on robust demand for both housing and auto loans.
“We expect a 20-percent growth for loans. It can be derived from auto, housing and also SMEs [small and medium enterprises]. SMEs are expected to grow faster this year. To achieve this target, we must focus on our core competence,” RCBC Savings president Rommel Latinazo said in a news briefing in Makati Tuesday evening.
He said the prospects were bright for auto loans as the domestic automotive industry had grown more than 20 percent annually over the past few years.
“The auto industry continues growing and it is good for us. We see the growth to be sustained for 2016 and in 2017 for the auto industry,” Latinazo said.
Latinazo said there would be a continuous demand for housing loans in the provinces, mainly for horizontal projects. He said the OFW market remained a strong segment as far as borrowers were concerned especially for housing.
Latinazo said deposits were also expected to grow by around 20 percent this year.
RCBC Savings Bank posted a 21-percent increase in net income to P1.249 billion in 2015, as loans grew 20 percent to P63 billion and deposits increased 15 percent to P80 billion.
Assets stood at P93 billion, up 15 percent year-on-year, enough to remain the third biggest thrift bank in the country behind BPI Family Savings Bank and PSBank of the Metrobank Group.
Housing accounted for 54 percent of the total loan portfolio while auto loans represented 37 percent.
The bank’s non-performing loan ratio improved to 1.9 percent from 2.6 percent in 2014. Capital adequacy ratio, a measure of bank stability, remained healthy at 13.5 percent, above the
regulatory limit of 10 percent.
RCBC Savings had 150 branches as of end-December 2015. Latinazo said the bank planned to open seven to eight branches this year mostly in the provinces. The bank’s automated teller machines stood at 436.
“There remains a very strong potential in areas outside Metro Manila. From a lending standpoint, what we are doing is we follow where [housing] developers are putting their presence,” Latinazo said.