RCBC’s 2022 profit rises by 71% to P12.1 billion

RIZAL COMMERCIAL Banking Corp. (RCBC) saw its net income rise by 71% to P12.1 billion in 2022 amid the improved performance of its core businesses.

The listed bank said in a disclosure to the local bourse that its 2022 earnings translated to a return on equity of 11.2% and a return on assets of 1.2%.

Its quarterly report was not available as of press time.

“We continue to work hard and smart to accelerate our transformation journey. Delivering best-in-class customer experience remains our main thrust. And so we are excited to develop more digital innovations and disruptive solutions that can reshape the way we do banking,” RCBC President and Chief Executive Officer Eugene S. Acevedo was quoted as saying.

The lender said the rise in its net profit last year was supported by the “double-digit” increase in core business income.

“RCBC achieved significant expansion in various business segments during the year. Investment securities rose by over 70% year on year, while SME (small and medium enterprise) loans and credit cards posted solid double-digit increases,” it said.

“The credit card business recorded a faster-than-industry growth in billings and balances, while keeping NPL (nonperforming loans) at its lowest in over a decade. Data science and analytics were instrumental in boosting customer acquisition and cross-selling to augment the bank’s foothold across key segments,” RCBC added.

The bank’s fee income also rose 19% year on year amid higher retail, bancassurance and digital transactions.

RCBC’s total assets stood at P1.2 trillion at end-2022. It said this came on the back of a 23% increase in earning asset volume.

The bank’s net interest margin was at 3.7%, while total deposits rose 27% year on year.

Its capital adequacy ratio and common equity Tier 1 (CET1) ratios stood at 15.29% and 12.33%, respectively.

“With an upcoming P27-billion capital injection from Sumitomo Mitsui Banking Corporation, one of Japan’s largest banks and 12th largest bank in the world, RCBC can reinforce its asset growth trajectory to become one of the biggest banks in the country,” the lender said.

The bank had a consolidated network of 462 branches, 1,352 automated teller machines (ATM), and 1,559 ATM Go terminals nationwide at end-2022.

RCBC’s shares closed at P24 each on Monday, down by 35 centavos or by 1.44% from the previous day. — A.M.C. Sy