RIZAL Commercial Banking Corp. (RCBC) saw net income drop 22 percent in the first half to P4.11 billion from P5.30 billion a year earlier as earnings were impacted by higher credit impairment provisions.
“Despite these headwinds, the bank’s core business sustained its growth momentum,” the lender said in a disclosure on Thursday.
Gross income rose 11.6 percent from a year ago to P33.91 billion as net interest income expanded by 18.2 percent, fueled by loan growth and enhanced funding efficiency, which helped lift net interest margin to 5.1 percent from 4.57 percent previously.
Operating efficiency also improved, with the bank’s cost-to-income ratio declining to 53.6 percent.
Customer loans grew 9 percent year on year to P806 billion as of end-June, led by a 22-percent increase in consumer loans to P402.4 billion.
RCBC said the growth reflected the use of data analytics and strategic partnerships to support customer acquisition while maintaining prudent underwriting and risk selection.
Total deposits reached P1.06 trillion while total assets stood at P1.41 trillion. The bank's total capital amounted to P150.84 billion at the end of the first half, with a capital adequacy ratio of 13.4 percent, well above the regulatory minimum.
"We are navigating a complex and shifting macroeconomic landscape," RCBC President and CEO Reginaldo Cariaso said.
"However, we have been building up our defenses, strengthening our balance sheet, and pursuing measured portfolio growth to protect, scale, and elevate the strong franchise that is RCBC," he added.
RCBC said it continued to expand its digital payments ecosystem through partnerships, including the MySSS Mastercard Debit and ID Card powered by RCBC DiskarTech.
Earlier this month, RCBC launched the first rail-based automated fare collection system for the Light Rail Transit 2 (LRT-2) in partnership with Visa, the Light Rail Transit Authority (LRTA), and the Department of Transportation.
The bank also raised P20.5 billion through its oversubscribed 6.08-percent Series G Asean Sustainability Bonds in April to finance green and social projects.
As of June 30, RCBC operated 471 full branch and MicroBank branches, 1,518 ATMs, and 5,086 ATM Go terminals nationwide.
Shares of the bank rose P0.10, or 0.44 percent, to close at P23.00 each on Thursday.
