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Robust loan growth helps RCBC report 24 percent profit rise

Robust loan growth helps RCBC report 24 percent profit rise

(20 February 2013 – Philippines) Philippines’ Rizal Commercial Banking Corporation (RCBC) reported a rise in profit of 24 percent, up to US$153 million (A$148 million) on robust growth in loans to individuals and small and medium enterprises (SMEs) and foreign exchange trading gains. Its net earnings rose to a 15.5 percent return-on-equity and a 1.77 percent return-on-assets. Net interest income rose 6.5 percent to US$282 million from 2011 despite the low interest rate environment.

Deposits, however, fell by 2.5 percent to US$6.1 billion. Savings account and current account deposits comprise 57 percent of the bank’s total deposits.

The bank’s loan portfolio rose by 2.9 percent to US$4.7 billion year as loans to corporates grew by only 8 percent.

Consumer loans rose by 25 percent and loans to SMEs, 37 percent as the bank grew its portfolio in less cyclical business in consumer banking, SMEs and microfinance.

Trading and foreign exchange gains increased by 32.9 percent, services fees and commissions by 7.5 percent and trust fees by 17 percent.

The bank’s non-performing loan (NPL) ratio improved to 0.98 percent last year from 1.47 percent in 2011.

RCBC expects its NPL to improve once it completes the sales of its bad assets to Philippine Asset Growth One, Inc., a special purpose company formed by the International Finance Corporation, Malaysia’s OSK Holdings Berhad and Thailand’s Altus Transactional Services, Inc.
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