Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2023 Earnings Presentation
27 slides from Rizal Commercial Banking's earnings presentation, May 2023
Slide 1: RCBC 1Q 2023 Investor Presentation
RCBC 1Q 2023 Investor Presentation May 2023 1
Slide 2: Agenda
Agenda 01 Economic Outlook 02 RCBC 1Q 2023 Performance 03 General Info 04 Appendix
Slide 3: 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 4: Economic Outlook
Economic Outlook Mr. Michael L. Ricafort RCBC Chief Economist 4
Slide 5: Expected recovery; rates to ease alongside inflation
Expected recovery; rates to ease alongside inflation Economic 2021 2022 2023 2023 Forecast 2024 Forecast Indicators Actual Forecast Forecast IMF* 6.0% 5.8% GDP Growth 5.7% 7.6% 5.5%-6.5% ADB 6.0% 6.2% USD/PhP (YE) 50.999 55.755 55.00-56.00 World Bank 5.6% 5.9% USD/PhP (Ave) 49.25 54.48 55.25-56.25 A
Slide 6: RCBC 1Q 2023 Performance
RCBC 1Q 2023 Performance Ms. Chrissy P. Alvarez RCBC Corporate Planning Head and Chief Information Officer 6
Slide 7: RCBC accelerates solid momentum
RCBC accelerates solid momentum +70% Net income hit P3.6 billion in the first quarter of 2023 supported by steady build-up of earning assets. Return on equity jumped to 13.3% in net income while annualized return on assets reached 1.3%. +20% Customer loans and investment securities drove asset growt
Slide 8: Profits rose 70% in Q1 2023 to over P3.6B
Profits rose 70% in Q1 2023 to over P3.6B 1Q2023 1Q2022 Change % Change INCOME STATEMENT Gross Income 12,993 9,902 3,091 31.2% Net Interest Income 7,267 8,052 (785) (9.8%) Fee Income 1,530 1,226 305 24.8% Operating Expenses 7,195 5,883 1,311 22.3% Impairment Losses 1,496 1,552 (57) (3.7%) Net Income
Slide 9: Total assets reached P1.2 trillion, up 20% year-on-year
Total assets reached P1.2 trillion, up 20% year-on-year Continued build-up of earning assets which This was on the back of double-digit increase in grew 14% versus year-ago level customer loans and investment securities 567 Ave. growth of 24% 924 517 +10% year-on-year growth 813 1Q 2022 1Q 2023 Loan
Slide 10: Focused expansion in high-yielding segments
Focused expansion in high-yielding segments Loan Portfolio1 Loan Mix In Php Billions, except % As of March 2023 PL/SL Consumer SME Corp 1% Auto 567 +10% 24% 517 Housing 43% Consumer 29% Loans 163 +14% Credit 143 51% 567B Card 32% 111 +18% 20% 94 SME along with consumer led the charge with 18% 278 29
Slide 11: Massive improvement in asset quality from last year
Massive improvement in asset quality from last year Net NPL Amount and Ratio Net NPL ratio per Segment In Php Billions, except % As of March 2023 25.0 3.30% 3.50% 3.17% Corporate 0.9% 3.00% 2.73% SME 1.8% 20.0 2.50% 2.15% 15.0 2.00% 1.99% Consumer 5.6% 2.00% 1.50% Credit Card 0.7% 10.0 18.3 17.8 14.
Slide 12: Deposit uplift from sustained momentum from CASA
Deposit uplift from sustained momentum from CASA Historical Deposits and CASA In Php Billions On the back of RCBC’s comprehensive suite of cash management solutions… 17% 857 859 CASA year-on-year growth 672 Cash Cube CheckScan QR Pay 536 (+103% volume) (+551% volume) (+800x volume) 457 421 432 423 3
Slide 13: Building the favored digital banking brand
Building the favored digital banking brand 36.3B 2023 will see DiskarTech 1784 gross transaction pivot into a more capable value; up 31% from LY ATM Go terminals and loans-focused app with a refreshed user 1200 interface (UX) and faster 59.3M onboarding in total revenues; up partner merchants 22% fr
Slide 14: Consolidated key financial indicators
Consolidated key financial indicators Mar-23 Mar-22 Change PROFITABILITY Return on Equity 13.3% 8.0% 5.3% Return on Assets 1.3% 0.9% 0.4% Net Interest Margin 3.1% 4.0% -0.9% COST EFFICIENCY Cost-to-Income Ratio 55.4% 59.4% -4.0% ASSET QUALITY Net NPL Ratio 1.9% 3.1% -1.2% NPL Coverage Ratio 80.2% 63
Slide 15: General Information
yee S. [Rohe General Information
Slide 16: Key milestones in the RCBC story
Key milestones in the RCBC story RCBC was incorporated and RCBC Savings Bank was IFC acquired an approximately RCBC completed a PHP15bn 1960 began operations in Rizal 1996 incorporated to provide 2011 7.2% stake in RCBC 2018 (USD280m) rights issue retail/consumer banking CVC Capital Partners acquire
Slide 17: Investment Information
Investment Information Equity Profile Dividend History1 Credit Rating Dividends Pay-out Particulars YE 2022 Year per share ratio Ticker RCB 2023 1.08 19.93% Long Term Deposit Baa3 Outstanding Senior Unsecured Baa3 2,037.48M 2022 0.62 20.00% shares Baseline Credit Stock Price PhP 24.50 2021 0.49 19.9
Slide 18: Comprehensive and Diversified Business Platform
Comprehensive and Diversified Business Platform RCBC RCBC RCBC Capital Rizal RCBC Forex Brokers International Corporation Microbank Leasing Corporation Finance1 99.96% 98.03% 99.67% 100% 100% RCBC Securities RCBC RCBC Corporation Rental Investment Ltd 99.96% 99.67% 100% RCBC Bankard Services Corpora
Slide 19: Ownership Structure
Ownership Structure Cathay Life Insurance, founded in 1962, is Taiwan’s largest insurance company. It is owned by Cathay Financial Holding, one of the largest financial holding companies in Taiwan. 22.2% Pan Malayan Management and Investment Corp. (PMMIC) & Affiliates of the Yuchengco Group of 39.6%
Slide 20: RCBC is recognized for its strong franchise across business lines
RCBC is recognized for its strong franchise across business lines 21
Slide 21: Appendix
Appendix 22
Slide 22: Consolidated Income Statement
Consolidated Income Statement 1Q 2023 1Q 2022 Change % Change Interest Income 14,668 10,274 4,394 42.8% Interest Expense 7,401 2,222 5,179 233.1% Net Interest Income 7,267 8,052 (785) -9.8% Other Income 5,726 1,850 3,877 209.6% Trading Gains and Forex 463 144 318 220.4% Trust Fees 107 102 6 5.4% Ser
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet 1Q 2023 1Q 2022 Change % Change Cash/Due from BSP & Other Banks 174,579 96,024 78,555 81.81% Investment Securities 351,259 275,622 75,638 27.44% Loans (net of Interbank) 563,431 512,798 50,633 9.87% Other Assets 64,674 77,269 -12,595 -16.30% TOTAL ASSETS 1,153,942 961,712
Slide 24: Historical Consolidated Income Statement
Historical Consolidated Income Statement 2019 2020 2021 2022 1Q2023 Net Interest Income 22.4 26.3 28.8 31.2 7.3 Other Income 13.5 11.6 7.6 13.2 5.7 Gross Income 35.9 37.9 36.4 44.5 13.0 Impairment Losses 7.4 9.4 6.0 5.7 1.5 Income before Operating Expenses 28.5 28.5 30.3 38.7 11.5 Operating Expenses
Slide 25: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet 2019 2020 2021 2022 1Q2023 Cash/Due from BSP/Due from Other Banks 123 148 157 181 175 Loans Arising From REPO 6 13 12 9 21 FVPL/FVTCI 60 45 56 122 117 Held to Maturity Investments 101 43 164 252 234 Interbank Loans and Receivables 19 43 31 28 10 Loans (net) 430
Slide 26: Historical Key Financial Indicators
Historical Key Financial Indicators 2019 2020 2021 2022 1Q2023 Return on Average Capital Funds 6.50% 5.50% 6.70% 11.24% 13.30% Return on Average Assets 0.80% 0.70% 0.80% 1.17% 1.32% Net Interest Margin 4.00% 4.30% 4.10% 3.70% 3.15% Cost-to-Income Ratio 60.80% 58.20% 61.90% 56.46% 55.37% CASA to Tota
Slide 27: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com 28
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