RCBC net profit jumps 77% in Q1 2020

Rizal Commercial Banking Corporation (RCBC) reported a 77% year-on-year increase in net profit, reaching ₱2.3 billion in the first quarter of 2020, driven by strong core business performance and substantial trading gains.

RCBC's gross revenues saw a 23% rise to ₱10.0 billion, fueled by increases in net interest income (up 19%) and non-interest income (up 29%).

Interest income from loans and receivables increased by 12% due to strong volume growth across all customer segments.

The bank's SME and consumer loan segments experienced growth rates of 26% and 20%, respectively, while credit card receivables grew by 42% and the card base by 25%.

RCBC managed to improve its operating efficiency, reflected in a lower cost-to-income ratio of 55.6% compared to 64.2% in the previous year.

The bank's net non-performing loan (NPL) ratio improved to 2.2% from 2.6% year-on-year, and its NPL coverage ratio rose to 76.2% from 67.3% to build buffers for COVID-related losses.

RCBC implemented an extension for payment dues during the enhanced community quarantine (ECQ) period from March 16 to May 15, 2020 for Luzon.

The bank's total assets reached PHP715.3 billion with capital at PHP84.7 billion, and its capital adequacy ratio (CAR) stood at 13.8%, exceeding the regulatory requirement.

RCBC president and chief executive officer Eugene Acevedo highlighted the bank's increased digital capabilities to serve customers efficiently during the ECQ.