Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2018 Earnings Presentation
25 slides from Rizal Commercial Banking's earnings presentation, 2019
Slide 1: Investor Presentation Full-Year 2018
INVESTOR PRESENTATION Full-Year 2018 1
Slide 2: Disclaimer
DISCLAIMER ANY INVESTMENT DECISION TO PURCHASE SECURITIES IN THE CONTEXT OF A PROPOSED OFFERING, IF ANY, SHOULD BE MADE ON THE BASIS OF THE FINAL TERMS AND CONDITIONS OF THE SECURITIES AND THE INFORMATION CONTAINED IN THE OFFERING CIRCULAR PUBLISHED IN RELATION TO SUCH AN OFFERING AND NOT ON THE BAS
Slide 3: Table of Contents
Table of Contents 1 Introducing RCBC 2 Financial Overview 3 Recognition 4 Appendix – Financial Information 3
Slide 4: 1. Introducing RCBC
NN <) 1. Introducing RCBC
Slide 5: Overview of RCBC
OVERVIEW OF RCBC RCBC is a leading financial services provider in the Philippines Incorporated on 23 September 1960 as Rizal Development Bank and received approval to operate as a commercial bank in December 1962. RCBC is currently the 8th largest private domestic bank in the Philippines by assets
Slide 6: Equity Profile and Dividends History
EQUITY PROFILE AND DIVIDENDS HISTORY Equity Profile Dividends History Dividends Particulars 2018 Year Pay-out ratio per share Ticker RCB 2019 0.45 17.02% Issued shares 1,935.63 mn 2018 0.62 20.02% Stock Price P28.50 2017 0.55 16.53% Market Cap P55.148bn (USD1.05bn) 2016 0.72 20.00% BV per share P43.
Slide 7: Credit Ratings
Credit Ratings Moodys [1] Fitch [2] Long Term Deposit Baa2 - Long Term IDR - BB+ Senior Unsecured Baa2 BB+ Bank Financial baa3 bb+ Strength [3] *Investment Grade rating by Moody's on July 6, 2018 [1] As of July 6, 2018 [2] As of November 22, 2018 [3] Reported as Baseline Credit Assessment (BCA) and
Slide 8: YGC Structure
YGC Structure • RCBC is a member of the Yuchengco Group of Companies (YGC), the group is engaged in a wide range of financial and non- financial services. The synergies among these companies allow customers to access a wide range of financial products and services. Pan Malayan Management and Investm
Slide 9: Comprehensive and Diversified Business Platform
COMPREHENSIVE AND DIVERSIFIED BUSINESS PLATFORM RCBC Forex Brokers RCBC Capital Rizal Micro Bank RCBC Leasing RCBC Intl Finance RCBC Savings Bank Corporation Corporation Microfinance Leasing Hong Kong Financing Thrift Bank Foreign Exchange Investment Bank Thrift Bank Company Company Broker RCBC Secu
Slide 10: Key Milestones in the RCBC Story
Key Milestones in the RCBC Story 1960-1970s 1980-1990s 2000s 2010s September 1960 1985 2000 2011 RCBC was Continental Illinois Bank Acquired 67% stake in Bankard Formed alliances with IFC and CVC Capital Partners sold its shareholding to UFJ Inc. Formed Bancassurance partnership with Sunli
Slide 11: Industry Ranking
Industry Ranking • RCBC has about 4% market share in Total Assets, Loans and Deposits among Universal / Commercial banks in the Philippines as of December 31, 2018. Total Assets (in Blns) Total Deposits (in Blns) 4,000 2,989 3,000 2,419 2,500 3,000 2,261 2,085 2,000 1,588 1,557 2,000 975 1,500 734 7
Slide 12: The New RCBC
The New RCBC • The new look and philosophy of RCBC is anchored on the mission to maintain and even strengthen the bank’s relevance among Filipino depositors. • RCBC strives to refresh and reenergize its services to serve loyal customers who have stood with the bank for the past 58 years. • Our new l
Slide 13: 2. Financial Overview
NN <) 2. Financial Overview 13
Slide 14: Income Statement FY 2018 vs. FY 2017
Income Statement RCBC (Consolidated) FY 2018 vs. same period last year (Amount in millions) Peso Income Statement - Year to Date FY 2018 FY 2017 % Change Change Interest Income 30,933 24,764 6,169 24.9% Interest Expense 10,444 6,743 3,701 54.9% Net Interest Income 20,489 18,021 2,468 13.7% Other Inc
Slide 15: Balance Sheet
Balance Sheet RCBC (Consolidated) (Amount in millions) As of Dec. As of Dec. Peso Balance Sheet % Change 31, 2018 31, 2017 Change Cash/Due from BSP & Other Banks 17,392 14,693 2,699 18.4% Investment Securities 118,449 72,932 45,517 62.4% Loans- net (including interbank) 398,300 354,243 44,057 12.4%
Slide 16: Loans: Growth by Segment
Loans: Growth by Segment • Successfully executed SME & consumer loan growth strategy FY FY 2018 2017 Growth Mix Mix Corporate 59% 59% 9% SME 14% 12% 28% Consumer 27% 27% 17% Total 100% 100% 13% 16
Slide 17: Self Funding
Self Funding Increase proportion of CA/SA deposits to lower overall funding costs 450 Customer deposits (PHP bn) 423 400 CA/SA to Total Deposits (%) 388 353 350 342 316 193 300 297 171 119 148 250 120 112 65% 56% 54% 200 58% 62% 150 62% 223 217 231 100 185 196 205 50 0 2013 2014 2015 2016 2017 2018
Slide 18: Establish Broad Distribution Channels
Establish Broad Distribution Channels Branch and ATM Network 2,000 1,562 1,593 1,488 1,500 1,342 1,150 1,202 1,000 481 508 509 500 435 449 456 0 2013 2014 2015 2016 2017 2018 Branches ATMS ATM to Branch 2.64:1 3.13:1 ratio 18
Slide 19: 3. Recognition
3. Recognition 19
Slide 20: World Finance and AsiaMoney Awards
World Finance — Best Banking Group in the Philippines –2013, 2014, 2017 — Best Commercial Bank in the Philippines –2017 AsiaMoney — Best Bank for SMEs in the Philippines - 2018 — Best Domestic Private Bank in the Philippines - 2013, 2014 — Best for Credit Derivatives - 2016 — Best Market Coverage –2
Slide 21: Other Awards in Communications and Branding
Other Awards —RCBC received several awards, among them six Quill Awards from the in the Area International Association of Business Communicators – 2018 of Communications and —The Gold Anvil for the brand refresh campaign – 2018 Branding —Recognition as part of the top 10 brand with the Most Improved
Slide 22: 4. Appendix – Financial Information
4. Appendix – Financial Information 22
Slide 23: Consolidated Income Statement
Consolidated Income Statement (PhP bn) 2013 2014 2015 2016 2017 2018 Net Interest Income 13.31 14.97 15.58 15.71 18.02 20.49 Total Non Interest Income 9.81 7.10 6.66 7.11 7.10 6.01 Gross Income 23.12 22.07 22.23 22.82 25.12 26.50 Provision for Loan Losses 2.05 2.51 2.35 1.77 2.16 1.90 Income before
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet (PhP bn) 2013 2014 2015 2016 2017 2018 Cash/Due from BSP/Due 70 76 84 107 93 94 from Other Banks Loans Arising From REPO 0 0 0 8 10 10 FVPL/FVTCI 3 21 9 24 13 30 Held to Maturity Investments 89 80 102 52 60 89 Interbank Loans Receivables 21 0.3 0.0 0.5 0.0 9.5 Loans-net 21
Slide 25: Consolidated Key Ratios
Consolidated Key Ratios 2013 2014 2015 2016 2017 2018 Return on Average Capital 12.2% 9.2% 9.3% 6.4% 6.7% 5.8% Funds Return on Average Assets 1.4% 1.0% 1.1% 0.8% 0.8% 0.7% Net Interest Margin 4.2% 4.3% 4.2% 4.1% 4.3% 4.0% Cost-to-Income Ratio 61.2% 64.5% 67.7% 76.1% 70.9% 73.2% CASA to Total Deposit
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