RCBC profit up 12% on stronger lending

RIZAL Commercial Banking Corp. (RCBC) reported a 12% year-on-year increase in net income to P2.7 billion in the first quarter, driven by stronger core lending activity and lower funding costs.

Net interest income rose 25% to P15.4 billion, supporting overall earnings growth during the period.

“Our focus has always been on building resilient platforms that scale responsibly, support growth and deliver consistent value to our customers,” RCBC President and Chief Executive Officer Reginaldo Anthony B. Cariaso said in a statement on Tuesday.

He said innovation anchored on discipline and customer focus continues to underpin the bank’s performance.

Net interest margin improved to 5.2% as the bank expanded higher-yielding consumer loans while benefiting from lower funding costs.

Service fees and commission income rose 9% to P2.8 billion, contributing to total revenues of P17 billion, up 16% from a year earlier.

Consumer lending remained a key growth driver, with total loans increasing 27%. Growth was led by auto loans, up 39%, followed by credit card receivables at 28% and housing loans at 17%.

On the funding side, deposits rose 9% to P1 trillion, with about half held in current and savings accounts. The bank said its digital platforms, including DiskarTech and Pulz, supported deposit growth.

Deposit costs declined 29%, helping RCBC finance loan expansion more efficiently and strengthen its balance sheet.

As of end-March, RCBC operated 470 branches, 1,520 automated teller machines (ATM) and 4,632 ATM Go terminals nationwide.

RCBC’s shares closed flat at P23 each on the local bourse. — Aaron Michael C. Sy