RIZAL COMMERCIAL Banking Corp. (RCBC) saw its profit slump in the first half of the year despite booking a double-digit rise in its bottom line in the second quarter, boosted by an increase in net interest income, trading gains and fee-based earnings during the period.
In a disclosure to the local bourse on Thursday, RCBC said its net income in the second quarter soared by 67% to P1.34 billion from the P806 million booked in the same period in 2016.
This was on the back of a 16% rise in net interest income as well as a 56% increase in trading gains and 140% climb in its fee-based income during the April to June period.
However, its second-quarter performance was not enough to boost its first-half profit following the decline recorded in the first three months. The lender said its net profit came in at P2.35 billion in the first semester of the year, down 9.96% from its unaudited consolidated net income of P2.61 billion recorded in the comparable period a year ago.
Its net interest income stood at P8.6 billion in the January to June period, which accounted for 70% of its total gross income of P12.4 billion during the six months end-June.
“The growth in net interest income was driven by the bank’s vibrant lending business with the loan portfolio expanding by 16% to P324 billion. All market segments sustained their growth with 15% growth in corporate loans, 26% growth in SME (small and medium enterprises) loans, 14% growth in consumer loans and 26% growth in credit card receivables,” RCBC stated.
It also noted the loan portfolio of its microfinance arm also continued to rise by 44%.
This brought its non-performing loans (NPL) ratio to 1.35% and NPL cover to 79.82%. Its capital adequacy ratio was at 15.20% and common equity Tier 1 ratio at 12.13% during the period.
The bank’s total deposits, meanwhile, rose by 20% year-on-year to P382.4 billion in the first six months, with current account, savings account deposits at P220 billion during the period.
Other operating income stood at P3.78 billion during the period, with fee income at P1.6 billion or 13% of gross income. Miscellaneous income grew 11% year-on-year on the back of “improved volume from leasing business.”
“Increase in total operating expenses was controlled at below 5% to P8.7 billion for the first half of the year,” RCBC stated, after it opened 18 new branches and 68 automated teller machines (ATMs) by end-June, amid its aim to expand customer reach and improve banking convenience.
Its consolidated branch network is now at 495 and 1,511 ATMs, bringing a 3.05% branch-to-ATM ratio.
Shares in RCBC were unchanged at P50.50 apiece on Thursday. — Janine Marie D. Soliman