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RCBC reports record revenue and strong digital growth despite net income dip

EditorNikhilesh Pawar
Published 2023-11-14, 11:42 a/m
© Reuters.

MANILA - Rizal Commercial Banking Corporation (RCBC) has reported a mixed financial performance for the first nine months of 2023, with record revenues and robust growth in digital banking operations, even as net income fell slightly from the previous year. The bank's net income for the period stood at Php 9 billion, a decrease of 10.89% compared to the same period last year, attributed to the absence of one-off income. However, the underlying strength of RCBC's core business was evident with a 7% improvement in profitability and a 17% increase in fee income, driving revenues to an all-time high of Php 36 billion.

The bank's total assets grew by 12%, reaching Php 1.2 trillion, bolstered by customer loans across all segments. Notably, consumer loans expanded by 23% year on year. RCBC's credit card portfolio experienced exceptional growth, with a 49% increase and cards-in-force surpassing the one-million milestone, thanks to effective data-driven acquisition strategies and cross-sell campaigns.

Digital banking also saw significant advances, with a 42% surge in gross transaction volume on RCBC's platforms. This digital prowess earned the bank Asiamoney's "Best Bank for Digital Solutions" accolade for the fourth consecutive year. In a statement today, RCBC President and CEO Eugene Acevedo emphasized the bank's dedication to leveraging artificial intelligence and digital solutions to enhance customer experience amid challenging external conditions.

The bank's capital position remains solid following a Php 27 billion capital infusion in July 2023. This strategic move increased RCBC's capital adequacy ratio (CAR) and common equity Tier 1 (CET1) ratio to robust levels of 17.1% and 14.4%, respectively. Deposit growth was primarily fueled by current account savings accounts (CASA), which rose by 13%, contributing to an overall deposit increase of 21% compared to the previous year.

As of today, RCBC shares held steady at Php 23.75 each. The bank operates a wide-reaching network that includes 459 branches, 1,448 automated teller machines (ATMs), and 3,426 ATM Go terminals across the nation. Additionally, RCBC has been recognized for its sustainability efforts with a total of 43 awards this year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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