Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — H1 2021 Earnings Presentation
24 slides from Rizal Commercial Banking's earnings presentation, Aug 16, 2021
Slide 1: 1H 2021 Net Income Results Media Briefing
1H 2021 Net Income Results Media Briefing 16 August 2021 9:30 AM
Slide 2: Agenda
Agenda 1 1H 2021 Net Income Results Presentation Ms. Christina P. Alvarez RCBC Corporate Information Officer and Head of Corporate Planning Group Mr. Bennett D. Santiago RCBC Chief Credit Officer and Head of Credit Management Group 2 Economic Overview and Outlook Mr. Michael L. Ricafort RCBC Chief E
Slide 3: 1H 2021 Net Income Presentation
1H 2021 NET INCOME PRESENTATION Ms. Chrissy P. Alvarez RCBC Corporate Information Officer and Head of Corporate Planning Group Mr. Bennett D. Santiago RCBC Chief Credit Officer and Head of Credit Management Group 3
Slide 4: Sustained profit growth as loans and deposits build-up performed better than industry
Sustained profit growth as loans and deposits build-up performed better than industry 16.9B 3.3B 484B 598B 104B 15.1% Revenues1 Net Income Loans2 Deposits Capital CAR +13% +7% +10% +20% +23% Profitability Growth Resilience Core income expanded driven by higher 6th largest private universal bank in t
Slide 5: RCBC is the Best Digital Bank
RCBC is the BEST DIGITAL BANK IN THE PH FOR TWO YEARS IN A ROW 2021 International Business 2021 Business Tabloid, 2021 Alpha Southeast Asia Magazine A London-based publication Best Financial Institution Awards 2020 Alpha Southeast Asia 2020 Asiamoney Best Financial Institution Awards Best Bank Award
Slide 6: Also recognized for its strong franchise
ALSO RECOGNIZED FOR ITS STRONG FRANCHISE in Retail Banking, Corporate Banking, SME Banking, and more BEST RETAIL BANK BEST CASH MANAGEMENT Global Banking and Finance Review BANK Global Banking and Finance Review BEST CORPORATE BANK DOMESTIC RETAIL BANK OF Global Banking and Finance Review THE YEAR,
Slide 7: RCBC posted 7% profit hike in 1H 2021
RCBC posted 7% profit hike in 1H 2021 *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Excluding trading and FX gains 7
Slide 8: 2Q 2021 net income up 11% from previous quarter
2Q 2021 net income up 11% from previous quarter *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Excluding trading and FX gains 8
Slide 9: 2Q 2021 net income up 118% vs same quarter last year
2Q 2021 net income up 118% vs same quarter last year *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Excluding trading and FX gains 9
Slide 10: Healthy core business growth drove profitability
Healthy core business growth drove profitability Return on equity remained stable as core Continued asset build-up and lower funding costs led to income expanded, tempered by lower trading higher NII and FX gains 6% 7 6.7% 6.5% 6.5% 8% 5.8% 5.5% 13.6 6% 6 12.8 4% 5 1H 2020 1H 2021 2% Net Interest In
Slide 11: Stronger balance sheet with growth in risk assets and diversified funding portfolio
Stronger balance sheet with growth in risk assets and diversified funding portfolio Gross Loans Investment Securities 9% 3.4x 487 178 457 88 446 52 2Q 2020 4Q 2020 2Q 2021 2Q 2020 4Q 2020 2Q 2021 Deposits Capital 20% 23% 598 101 104 536 84 499 2Q 2020 4Q 2020 2Q 2021 2Q 2020 4Q 2020 2Q 2021 *Amounts
Slide 12: 9% customer loan expansion despite industry decline
9% customer loan expansion despite industry decline Sustained customer loan portfolio increase Loan growth continued to outperform industry and peers driven by proactive client engagement and 13% streamlined processes 10% 9% 487 446 29% 4% 30% 1H 2020 -2% 1H 2021 Industry2 RCBC 18% 17% 17% SME segme
Slide 13: 20% deposit jump outpaced industry average
20% deposit jump outpaced industry average Higher CASA and Time deposits fuelled Solid double-digit growth in deposits better than industry RCBC’s asset build-up strategy and peers 19% 20% 598 13% 8% 499 259 11% 1H 2020 1H 2021 233 Industry1 RCBC CASA deposits sustained growth momentum as the Bank e
Slide 14: Uptick in NPLs within expectations
Uptick in NPLs within expectations NPL ratio remained elevated driven by the Recognized additional provision for impairment losses in increase in consumer NPLs 1H 2021 even with the significant build-up of reserves in 2020 20.0 3.3% 3.5% 55% 18.0 2.9% 5.2 3.0% 16.0 2.3 14.0 2.2% 2.5% 1H 2020 1H 2021
Slide 15: Championed Sustainable Finance
Championed Sustainable Finance RCBC is the first Philippine universal bank to issue About 10% (PhP 55B) of the Bank’s loan portfolio is green and sustainable financing instruments under eligible under Sustainable financing global standards. RCBC Sustainable Loan Portfolio USD 1.1B June 2021 Socioeco
Slide 16: RCBC Mobile App made even more powerful
RCBC Mobile App made even more powerful RCBC continued to introduce industry-leading digital 123% solutions with the addition of features such as online UITF portfolio management. Increase in digital banking transaction volume 167% QR Payments Wide selection of Billers Growth in InstaPay transaction
Slide 17: Promoted inclusive digital finance
Promoted inclusive digital finance Through Diskartech and ATM Go, the Bank offers vital 16.1B financial and banking services needed by unbanked and underserved communities. Total peso amount disbursed via ATM Go during the pandemic 90% Financial Inclusion First “kapitbahay” Provinces covered (73/81)
Slide 18: Wide distribution network across the Philippines
Wide distribution network across the Philippines RCBC’s Branch Distribution by Region June 2021 CAR I: Ilocos 3 13 6 II: Cagayan Valley Region III: Central 36 IV-A: Calabarzon Luzon NCR: Metro Manila 171 69 6 V: Bicol Region IV-B: Mimaropa Branches and Extension Offices1 434 VIII: VI: 6 Eastern West
Slide 19: Economic Overview and Outlook
ECONOMIC OVERVIEW AND OUTLOOK Mr. Michael L. Ricafort RCBC Chief Economist 19
Slide 20: Philippines seen to recover in 2021-22
Philippines seen to recover in 2021-22 2Q 2021 GDP resulted to +11.8% growth largely due to low base effects Philippine economy to go back to pre-COVID levels by 2021 FORECAST 2022 (presidential election year); however, further GDP growth rate lockdowns could delay this to 2023 But other industries
Slide 21: Data shows recovery from severe GDP numbers in 2020
Data shows recovery from severe GDP numbers in 2020 Philippine GDP growth continue to improve from worst levels USD/PhP exchange rate PSEi still relatively better compared remained to be strong in 1H21 to the lows recorded in March 2020 50.68 Mar „20 48.80 Jun „21 21
Slide 22: The Bank expects recovery in 2021
The Bank expects recovery in 2021 2022 2021 2020 Economic Indicators Forecast Forecast Actual GDP Growth 6.5%-7.0% 4.0%-5.0% (9.5%) USD/PhP (Year-End) 50.00-51.00 49.50-50.50 48.02 USD/PhP (Average) 50.25-51.25 49.00-50.00 49.62 Inflation (Average) 2.8%-3.3% 4.0%-4.3% 2.6% BSP Policy Rate 2.25%-2.50
Slide 23: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com 23
Slide 24: Thank you.
RCBC Thank you.
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