RCBC profit soars 77% in Q1 2020 on forex, trading gains
MANILA, Philippines – Rizal Commercial Banking Corporation (RCBC) reported superior gains in the 1st quarter of 2020 despite headwinds brought by the coronavirus pandemic.
RCBC on Monday, May 4, reported a net income of P2.3 billion for the 1st quarter, 77% higher than the same period last year.
The Yuchengco-led bank attributed the stellar performance of its bottom line to its robust core business and gains from non-interest income.
Interest income from loans and receivables grew by 12% on the back of strong volume growth and sustained margins across all customer segments.
Trading and foreign exchange gains pushed up non-interest income by 29%.
As of March 2020, the bank's total assets stood at P715 billion.
RCBC's non-performing loans (NPL) ratio stood at 2.2% in March, better than the 2.6% in the same period last year. The NPL ratio compares loans that have not been paid on time to the bank's total loan portfolio. A lower number indicates fewer debtors failing to pay off loans.
RCBC said it has built sufficient buffers for potential coronavirus-related losses.
Other banks earlier reported much higher loan loss provisioning to shield themselves from the pandemic's economic impact. (READ: Pandemic prompts UnionBank to jack up loan loss buffer by 750%)
Meanwhile, small and medium enterprises and consumer loan segments registered growth of 26% and 20%, respectively, before the Luzon lockdown.
RCBC's credit card business also expanded, with credit card receivables accelerating by 42%, and card base of 914,000 reflecting a 25% year-on-year growth.
With the pandemic in mind, RCBC has continued to strengthen its digital capabilities and urged users to shift to digital channels.
"RCBC's digital solutions are designed to make banking as convenient and as efficient as possible as we acclimatize ourselves with this new normal," said RCBC president and chief executive officer Eugene Acevedo. – Rappler.com