RCBC to focus on expansion of ATM network

RCBC (Rizal Commercial Banking Corp.) will focus on expanding its ATM (automated teller machine) network in the next two years, a bank official said last Friday.

The company plans to put up 15 to 20 new ATM outlets every year, particularly in the provinces, because Metro Manila is already considered overbanked, said executive vice president and head of strategic initiatives John Deveras.

“[W]hat’s important for RCBC in the next two years is the expansion of our ATM network,” he said at the sidelines of the opening of a Rizal Microbank—the bank's microfinance unit—in Lipa, Batangas.

“Right now, we have an ATM network of 1,100. We want to have a ratio of four ATMs for every branch. We have about 430 branches now—so times four, RCBC should have 1,700 ATMs,” he added.

With each ATM costing about 900,000 to set-up, said Deveras, the bank could spend P540 million for an additional 600 ATMs nationwide in the next two years.

In the first half of the year, RCBC also opened six new branches and 97 ATMs, bringing its nationwide network to 424 branches and 1,107 ATMs—a 2.61 branch-to-ATM ratio that is one of the highest in the country.

Also in the first semester, RCBC's consolidated net income rose 5.18 percent to 3.17 billion from P3.01 billion in the same period of 2012, translating to an annualized return on equity of 14.35 percent and annualized return on assets of 1.73 percent.

Net interest income improved by 12.5 percent to P6.18 billion from P5.50 billion on year, while total fee-based and miscellaneous income rose 24 percent to P2.83 billion.

RCBC’s capital adequacy ratio stood at 18.09 percent, well above the central bank’s minimum requirement of 10 percent.

Loans reached P199.24 billion, buoyed by rises in loans to the consumer and SME segments by 20.1 percent and 15.2 percent, respectively.

In microfinance, the bank's loan disbursements grew 37 percent and its outstanding loan portfolio 79 percent. RCBC plans to expand Rizal Microbank's nationwide network from 14 to 26.

As of June 2013, the bank’s customer base was at 5.04 million from 3.7 million in the same month last year. — BM, GMA News