RCBC earnings fall nearly 15 pct in 2013


Posted at Feb 11 2014 01:21 PM | Updated as of Feb 11 2014 09:21 PM

MANILA, Philippines – Rizal Commercial Banking Corporation (RCBC) posted an unaudited consolidated net income of P5.3 billion in 2013, 14.60% lower than P6.2 billion in 2012 due to lower trading gains from securities.

RCBC president and CEO Lorenzo Tan said 2013 was a challenging year for the bank citing developments in the global markets holding back trading gains.

RCBC said it posted significant growth in its core business as its net interest income reached P13.39 billion, an increase of 17.4% from last year’s P11.40 billion. Net interest margin in 2013 also improved to 4.25% compared to the 3.93% last year.

The bank’s total fee-based and miscellaneous income also jumped 50% to P6.64 billion.

RCBC did not give details on trading gains, but stock brokerage firm COL Financial estimated the bank's trading gains dropped P6.7 billion in 2012 to around P3 billion in 2013.

“This should already be expected given the steady increase in bond rates as well as the high base set during the previous years,” COL Financial said.

COL Financial added that trading gains hit P2.9 billion in the first nine months of 2013, down 44% year-on-year.

Net loans, meanwhile, reached P237.92 billion in 2013 driven by sustained growth in the corporate, consumer and SME market segments.

RCBC added that it improved its asset quality as its non-performing loans (NPL) ratio declined to 0.51% as of end-2013 from 0.98% as of end-2012.

Parent bank reserve cover stood at 112.07% while consolidated NPL ratio improved to 1.06% from 1.86% in 2012.

Meanwhile, RCBC’s total operating expenses jumped a modest 5.44% to P14.09 billion due to its ongoing expansion.

RCBC opened 15 new branches and installed 140 additional ATMs in 2013, bringing its consolidated network to 435 branches and 1,150 ATMs.

“We look forward to 2014 as a better year in terms of reinforcing our business platforms as we intend to sustain our loan growth path, expand our client base, and enhance our electronic banking channels,” Tan said in a statement.