Yuchengco-led Rizal Commercial Banking Corp. posted a 9.9-percent year-on-year drop in six-month net profit to P2.35 billion, dragged by slower business in the first quarter.
For the second quarter, RCBC’s net profit rose by 67 percent year-on-year to P1.34 billion. This was attributed to higher net interest income, trading gains and fee-based earnings which respectively increased by 16 percent, 56 percent and 140 percent compared to last year.
For the six-month period, annualized return on equity and return on assets stood at 7.5 percent and 0.91 percent, respectively.
In the first six months, net interest income reached P8.6 billion, 6.6 percent higher than the level last year. This represented 70 percent of total gross income amounting to P12.4 billion. Annualized net interest margin (NIM) improved by 20 basis points to 4.26 percent from the level in full year 2016.
The growth in net interest income was attributed to the bank’s vibrant lending business, with the loan portfolio expanding by 16 percent to P324 billion. All market segments sustained their growth, with 15 percent growth in corporate loans, 26 percent growth in small and medium enterprise (SME) loans, 14 percent growth in consumer loans and 26 percent growth in credit card receivables. Meanwhile, the microfinance arm of the bank expanded its outstanding loan portfolio
by 44 percent.
Meanwhile, other operating income declined to P3.78 billion from last year’s P4 billion. Fee-based income totalling P1.6 billion was flat from last year while miscellaneous income grew by 11 percent year on year.
Total deposits grew by P62.6 billion or 20 percent year-on-year to P382.4 billion, of which low-cost deposits accounted for P220 billion.
Bad loans were capped at 1.35 percent as a ratio of total loans.
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