By Joann Villanueva
Strong growth in loans and deposits boosted Rizal Commercial Banking Corporation’s (RCBC) net income by 19 percent year-on-year in the third quarter of 2017 to Php1.1 billion.
In a disclosure to the Philippine Stock Exchange (PSE) Friday, the bank said its core business was lifted by the 19-percent expansion in net interest income and a 14-percent rise in fee-based income.
However, consolidated net income as of last September is lower at Php3.4 billion against year-ago’s Php3.5 billion. In the first nine months this year, RCBC's net interest income totalled Php13.1 billion, up 11 percent year-on-year, due to strong growth in loans.
Total customer loans went up 17 percent year-on-year to PhP338 billion, with all segments rising across the board, the disclosure said. Lending to the small and medium enterprises (SMEs) registered the highest growth at 34 percent, followed by credit card receivables, 28 percent; corporate loans, 13 percent; and consumer loans, 13 percent.
The bank said its microfinance arm, the Rizal MicroBank (RMB), grew by 42 percent year-on-year “through continuous efforts to enhance its current loan products, responsive to the needs of its mandated market segments.”
Gross income amounted to Php18.6 billion with total Other Operating Income rising 29 percent to Php5.4 billion. The share of fees and commissions income, or those from card-related fees, trust fees, and fees from investments banking and loans, accounted for around 14 percent. – PNA