Higher loans carry RCBC’s net income to $79.87m in H1

Net interest margin rose 41 basis points to 3.71%.

Rizal Commercial Banking Corporation (RCBC) reported a net income of PHP4.5b (approximately $79.87m) for the first six months of 2024.

The Philippine-based bank’s core business revenue rose 29% in H1, fueled by a 38% increase in consumer loans, RCBC said in a filing at the Philippine Stock Exchange (PSE).

Net interest margin rose 41 basis points (bp) to 3.71%, led by a 53% growth in its credit card portfolio. 

RCBC credit card billings rose 42%, reportedly double the industry growth rate, the bank said.

Auto and housing loan portfolio expanded 28% year-on-year (YoY) in H1, whilst its personal and salary loan portfolio tripled during the same period. Loans generated digitally reached $35.5m (PHP2b) in H1.

Despite its loan expansions, RCBC’s share of bad loans fell. The bank has a gross non-performing loan (NPL) ratio of 3.77%, a 14 basis point reduction from H1 2023.

Capital ratios for the period exceed regulatory requirements: capital adequacy ratio (CAR)– the measure of banks’ capital to its risk– is 16.41%, whilst its CET1 ratio is 13.83% in H1, RCBC said.

As of 30 June, RCBC has 458 branches, 1,486 ATMs, and 6,836 ATMGo terminals located across the Philippines.

(US$1 = PHP 56.34)