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RCBC reports P2.35-b income

Rizal Commercial Banking Corp., the ninth-largest lender in terms of assets, said Thursday net income in the first half reached P2.35 billion, down by 10 percent from P2.61 billion a year ago.

RCBC said in a statement this performance translated into an annualized return on equity and return on assets of 7.50 percent and 0.91 percent, respectively.

The bank said in the second quarter alone, net income jumped 67 percent to P1.34 billion from P806 million in the same period last year, on the back of 16-percent increase in net interest income, 56-percent growth in trading gains and 140-percent rise in fee-based income.

Net interest income in January to June reached P8.6 billion, and represented 70 percent of total gross income amounting to P12.4 billion. Annualized net interest margin remained strong at 4.26 percent, a 20-basis-point improvement from 4.06 percent recorded in full year 2016.

“The growth in net interest income was driven by the bank’s vibrant lending business with the loan portfolio expanding by 16 percent to P324 billion. All market segments sustained their growth with 15 percent growth in corporate loans, 26 percent growth in SME Loans, 14 percent growth in consumer loans and 26 percent growth in credit cards receivables,” the bank said.

Meanwhile, the microfinance arm of the bank that provides financing requirements for micro and small enterprises continued its uptrend with outstanding loan portfolio increasing 44 percent.

Other operating income reached P3.78 billion, with fee income totaling P1.6 billion and representing 13 percent of gross income. Miscellaneous income grew 11 percent year-on-year, driven by improved volume from leasing business.

Total deposits grew by P62.6 billion or 20 percent year-on-year to P382.4 billion.

Topics: Rizal Commercial Banking Corp. , RCBC , net income
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