RCBC books higher net profit in 2023

RIZAL COMMERCIAL Banking Corp.’s (RCBC) net profit hit record high in 2023 amid higher loans and deposits, it said on Tuesday.

The Yuchengco-led bank’s net income stood at P12.22 billion last year, the lender said in a disclosure to the stock exchange.

“It hit a record high profit as customer loans soared by 15% year on year, faster than industry average. CASA (current and savings account) deposits increased by 19%, likewise outpacing the industry’s 3% growth,” RCBC said.

Its financial statement was unavailable as of press time.

“RCBC saw another breakthrough year in our financial performance, complemented with more recognitions in digital banking and customer service. We will intensify the use of AI (artificial intelligence) and data science across the bank to guide our product innovation and exceptional service delivery,” RCBC President and Chief Executive Officer Eugene S. Acevedo said.

The bank’s loans grew by 15% to P622 billion, with consumer loans rising by 29%, driven mainly by credit cards and housing loans.

RCBC said its credit card balances and billings also grew by 48% and 45%, respectively, amid its data-driven acquisition campaigns. Meanwhile, housing loans rose by 22% in 2023 amid record bookings.

Despite the increase in loans, the bank’s gross nonperforming loan ratio improved to 3.34% in 2023 from 3.75% in 2022.

On the funding side, total deposits reached P957 billion in 2023, driven by the 19% growth in CASA deposits.

“The bank’s cash management and payroll solutions, alongside extensive business relationships, provided the double-digit uplift in low-cost CASA deposits,” RCBC said.

The bank’s assets stood at P1.2 trillion at end-2023.

Total capital grew by 31% last year following Sumitomo Mitsui Banking Corp.’s capital infusion in July.

Its capital adequacy ratio and common equity Tier 1 ratio stood at 16.37% and 14.69%, respectively.

As of Dec. 31, the bank had a consolidated network of 458 branches, 1,460 automated teller machines (ATMs), and 5,779 ATM Go terminals nationwide.

RCBC’s shares dropped by 10 centavos or 0.41% to end at P24 apiece on Tuesday. — A.M.C. Sy