RCBC Reports 10% Decline in Net Income in First Nine Months of 2023
The Rizal Commercial Banking Corporation (RCBC), a core business of the Yuchengco Group, has reported a 10 percent decline in net income to P9 billion in the first nine months of 2023 from the P10.1 billion earned in the same period last year.
According to a statement from the bank, the decrease in net income is primarily attributed to significant non-recurring income posted last year, despite a seven percent improvement in core business profitability.
The bank closed the first nine months of 2023 with record-high revenues at P36 billion as fee-based income increased by 17 percent from year-ago levels. Total assets also climbed 12 percent and reached P1.2 trillion, driven by a 12 percent increase in customer loans with higher loan volumes across all segments.
The consumer segment led the rally and rose 23 percent year-on-year. Credit cards, in particular, saw a 49 percent growth in their portfolio with new cards issued up 51 percent from last year. The cards-in-force recently surpassed the one million benchmark supported by data-driven acquisition and cross-sell campaigns.
RCBC President and CEO Eugene S. Acevedo stated, “With customer experience at the heart of our digital transformation strategy, the Bank commits to deliver relevant and disruptive solutions to the market.” He added that, “These innovative and high-impact AI and digital use cases were key to the Bank’s sustained growth despite challenging external headwinds.”
To support the bank’s asset build-up strategy, deposits rose 13 percent, mostly from CASA which accounted for 83 percent of the increase and closed 21% higher versus the previous year.
Capital also increased following the P27 billion capital infusion last July, boosting the capital adequacy ratio (CAR) and common equity tier 1 (CET1) ratio to 17.1 percent and 14.4 percent, respectively as of September 30, 2023.
RCBC remains the favored digital banking brand with a 42 percent increase in gross transaction volume across the bank’s multiple digital platforms. As of September 2023, RCBC had a total consolidated network of 459 branches, 1,448 automated teller machines, and 3,426 ATM Go terminals strategically located nationwide.
