Yuchengco Group of Companies’ Rizal Commercial Banking Corporation (RCBC) posted an 11.4-percent expansion in its net income in end-September this year after this reached P4.08 billion against year-ago’s P3.66 billion.
The bank’s return on equity (ROE) remained strong at 15.88 percent, the banks reported Wednesday.
In the first nine months this year, the bank’s net interest income totaled to P8 billion and accounted for 53 percent of its gross income.
Its other operating income rose by 11.4 percent to P7.13 billion due mainly to the 33.78 percent increase in service fees, commissions, and other income; and the 19.2 percent jump in trust fees.
To date, the bank has the highest net interest margin of 4.14 percent in the industry.
As of last September, the bank’s total consolidated resources expanded by 5.89 percent to P311.86 billion against year-ago’s P294.54 billion.
Also, loans rose to P166.92 billion on account of the 15.54 percent rise in corporate loans and the 23.48 percent rise in small and medium enterprise (SME) loans.
Amid the rise in loans, the bank’s non-performing loans (NPL) ratio went down to 2.13 percent the 5.46 percent same period last year.
Its capital base rose by 22.97 percent to P41.19 billion from end-September 2010’s P33.49 billion due to the investments by IFC and CVC Capital Partners.
Capital Adequacy Ratio (CAR), a gauge of a bank’s financial health, stood at 20.26 percent and remains higher than 10-percent requirement of the central bank.
The bank’s decision to focus on increasing its low cost de posits, which grew by 19.42 percent, boosted deposit base to P218.29 billion.
The bank reported that ratio of low cost deposit to total deposits got better to 61.54 percent as of last September against the 52.16 percent same period last year.
Operating expenses reached P9.10 billion after the bank decided to expand its branch and ATM network and increase its reach.