Rizal Commercial Banking Corp., the ninth-largest lender in terms of assets, said unaudited consolidated net income in 2017 rose 11.4 percent to P4.3 billion from P3.9 billion in 2017, on higher loans and deposits.
RCBC said in a disclosure to the stock exchange net income in the fourth quarter surged 146 percent to P904 million from P368 million a year ago, led by a 27-percent growth in net interest income and a 19-percent expansion in non-interest income.
“The bank is on track and ready to take advantage of the opportunities expected from the favorable business environment in 2018. Our delivery channels are geared up with new branches and improved ATM systems supported by strengthened security measures in anticipation of the increased client activity in 2018,” RCBC president and chief executive Gil Buenaventura said in a statement.
“Competition, however, will continue to be strong. The RCBC management understands this all too well and is prepared to address this with a strong sense of urgency as we pursue our business plans, key initiatives and key transactions this year,” Buenaventura said.
Net interest margin in 2017 remained strong at 4.24 percent, an improvement of 19 basis points from 4.06 percent recorded a year earlier.
Net interest income reached P18 billion, with 15-percent growth year-on-year, as total customer loan portfolio expanded 16 percent to P353 billion.
All market segments sustained growth with 12-percent expansion in corporate loans, 39 percent in SME loans, 15 percent in consumer loans and 29 percent growth in credit card receivables.
Rizal Microbank, the microfinance arm of RCBC that provides financing requirements for micro and small enterprises, increased its outstanding loan portfolio by 39 percent, through continuous efforts to enhance its current loan products responsive to the needs of its mandated market segments.
Total gross income reached P25.1 billion with total other operating income amounting to P7.1 billion or 28 percent of gross income. Fees and commissions, which include card-related fees, trust fees, and fees on investment banking and loans hit P3.4 billion and accounted for 14 percent of total gross income.
Total operating expenses went up 2.3 percent to P17.8 billion for 2017.
RCBC pursued the expansion of its distribution network by selectively opening 27 branches and deploying 74 ATMs mainly in support of its ongoing strategy to broaden customer reach and enhance banking convenience.
This brought the consolidated network to 508 branches and 1,562 ATMs as of end-2017, resulting in a 3.07 branch-to-ATM ratio, one of the highest in the industry.
Total consolidated resources expanded to P556.3 billion. Total deposits grew 10 percent or P35.3 billion to P388.9 billion.