RCBC profit up to US$153 million

Loans to SMEs and forex gains fuel profit increase in 2012.

Rizal Commercial Banking Corporation (RCBC) said its profit rose by 24% from US$123 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% return-on-equity and a 1.77% return-on-assets. Net interest income rose 6.5% to US$282 million from 2011 despite the low interest rate environment.

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

The bank’s loan portfolio rose by 2.9% to US$4.7 billion year as loans to corporates grew by only 8%. Consumer loans rose by 25% and loans to SMEs, 37% 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%; services fees and commissions by 7.5% and trust fees by 17%.

The bank’s non-performing loan (NPL) ratio improved to 0.98% last year from 1.47% 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 special purpose company formed by the International Finance Corporation, Malaysia’s OSK Holdings Berhad and Thailand’s Altus Transactional Services, Inc.