RCBC nets P5B in 2020

Rizal Commercial Banking Corp. (RCBC) saw its bottom line decline by 7% in 2020, following higher impairment losses to manage higher risks due to the COVID-19 pandemic and the economic slowdown.

RCBC reported an unaudited consolidated net income of P5.0 billion in 2020 versus P5.4 billion the previous year, the bank booked over double impairment losses to P9.3 billion. Meanwhile, gross income rose 6% to P37.9 billion and net interest income grew 18% to P26.3 billion.

"The pandemic has drastically changed customer behavior, but we are thrilled with how we can continuously provide the best banking experience to our customers and fellow Filipinos through innovative digital solutions," RCBC president and chief executive officer Eugene Acevedo said in a regulatory filing.

RCBC's diversified loan portfolio expanded by 5% to P456.6 billion, mainly driven by the small and medium enterprises (SME) loans which grew 8%, and consumer loans which rose 5%. Its credit card business likewise grew 3% in terms of receivables, while the non-performing loan (NPL) ratio was 2.9% at end-2020.

In terms of expenses, the lender said operating costs grew 1.4% to P22.1 billion while cost-to-income ratio stood at 58.3% as of December 2020 versus 60.8% in the same period in 2019.

RCBC offers commercial, corporate, and consumer lending products, cash management products, treasury products, and remittance services. Along with subsidiaries, it is engaged in all aspects of traditional banking, investment banking, retail financing, remittance, leasing, foreign exchange, and stock brokering.

Its subsidiaries include RCBC Capital Corporation, RCBC Securities Inc., RCBC Savings Bank Inc., RCBC Forex Brokers Corporation, RCBC International Finance Limited, RCBC North America Inc., RCBC TeleMoney Europe S.p.a., and RCBC Leasing and Finance Corporation.

The lender ended 2020 with a total consolidated network of 447 branches and 1,426 automated teller machines (ATMs).

Shares in the company opened Tuesday at P17.10 apiece, down by 1.16% from Monday's finish of P17.30 per share.—AOL, GMA News