MANILA - Rizal Commercial Banking Corp (RCBC) on Wednesday said its net income grew in the first half of the year as net interest income, trading gains and core businesses improved.
RCBC posted a P3.1 billion net profit for the January to June period, a 17 percent increase from its year ago figure despite boosting provisions to account for higher risks caused by the COVID-19 pandemic.
"The Bank is taking on substantial provisions for the first half of the year, as much as 3.5x more than the provisions set aside last year, normalized for extra-ordinary items," RCBC in a disclosure to the stock exchange said.
Gross revenues increased 25 percent to P20.9 billion, thanks to higher net interest income and non-interest income while net interest margin rose 4.3 percent, it said.
“It has been a difficult first half of the year, and we remain mindful of the challenges ahead. Hence, we’ve taken prudent steps to cushion the impact of this pandemic and at the same time, to continue serving our fellow Filipinos better by strengthening our digital capabilities, customer relief programs, and partnership with the government and other financial institutions,” said RCBC president and CEO Eugene Acevedo.
Total deposits rose by 19 percent to P499.4 billion, while diversified customer loan portfolio expanded 13 percent to P446.4 billion, led by the small and medium enterprises (SME) and consumer loan segments.
The credit card business also grew, with credit card receivables accelerating by 21 percent, and card base of over 908,000 reflecting a 15 percent year-on-year growth, it added.
Net non-performing loan (NPL) ratio as of June was at 2.2 percent.