Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2023 Earnings Presentation
21 slides from Rizal Commercial Banking's earnings presentation, March 2024
Slide 1: FY 2023 Analysts' Briefing
FY 2023 Analysts’ Briefing March 2024
Slide 2: A few reminders…
A few reminders… If your connection gets cut, you Microphones will remain on mute If you have any concerns during may use the same link or meeting during the briefing proper and will the briefing, you may send us a details to get back in. be unmuted during the question message using the chatbox. and
Slide 3: A few reminders…
A few reminders… For easier identification, kindly set your meeting name to include your company or organization followed by your registered name. e.g., RCBC – Juan dela Cruz Queue your name using the chatbox for your questions. Each participant may ask two questions at a time. If you have more ques
Slide 4: FY 2023 Performance
FY 2023 Performance Chrissy P. Alvarez Corporate Planning Head 4
Slide 5: Stable foundations despite headwinds
Stable foundations despite headwinds • Total assets jumped on the back of 15% increase in customer loans ₱1.2T ₱622B Asset Growth • More than 1 million cards-in-force for Credit Cards in total assets; 7.2% higher vs last year in loans; driven by consumer • Deposit rally driven mostly by CASA • Upwar
Slide 6: Efficient expansion with leaner organization
Efficient expansion with leaner organization Assets nearly doubled Profits on track to triple Headcount cut by 7% after 5 years after 5 years after 5 years 1,237 12.2 6,886 6,410 645 4.3 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 In PhP Billions, except
Slide 7: Consolidated key financial items
Consolidated key financial items FY 2023 FY 2022 Change % Change INCOME STATEMENT Gross Income 49,941 44,454 5,487 12.3% Net Interest Income 33,574 31,216 2,358 7.6% Fee Income 7,082 5,884 1,198 20.4% Operating Expenses 29,612 25,100 4,512 18.0% Impairment Losses 6,914 5,706 1,208 21.2% Net Income 1
Slide 8: Peak revenue boosted by NII, 8% increase vs. LY
Peak revenue boosted by NII, 8% increase vs. LY Historical Revenues In Php Billions, except % 50 ▲14% 44 CAGR 2018- 16.4 23 37 36 36 13.2 11.6 7.6 27 13.5 Other Income 6.1 Net Interest Income 31 34 29 26 20 22 2018 2019 2020 2021 2022 2023 8
Slide 9: Loan growth better than industry average
Loan growth better than industry average SMBC Capital infusion¹ Monthly Trend – Loan Portfolio 2019 to December 2023 14% YoY growth vs Dec 2022 Capital limits 6% 7% COVID-19 12% Industry growth pandemic as of Dec 2023 5% 14% Industry growth 12% 5% Industry growth 1% Industry growth 11% Industry grow
Slide 10: Loans up across all customer segments
Loans up across all customer segments Loan Portfolio1 Loan Mix In Php Billions, except % As of December 2023 622 +15% PL/SL 1% 543 Consumer SME Corp Auto 21% Housing 204 +29% 41% Consumer 158 Loans 33% 622B Credit 47% Card 125 +17% 37% 107 20% 276 292 +6% SME and Consumer segment grew by 17% and 29%
Slide 11: Beyond a million, active credit cards to date
Beyond a million, active credit cards to date Cards-in-Force 1,042 In 000s, 1,014 1,023 1,030 992 1,002 969 972 977 984 956 962 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 257K P139B P75B new cards YTD; bring in issuing billings; 45% in total balances; 48% car
Slide 12: Improving asset quality despite portfolio growth
Improving asset quality despite portfolio growth Gross NPL amount and ratio Gross NPL ratio per segment In Php Billions, except % As of December 2023 40.0 6.00% 5.10% Corporate 1.58% 35.0 4.58% 5.00% SME 3.55% 4.04% 3.91% 30.0 3.83% 3.75% 3.77% 4.00% 25.0 3.34% Consumer 5.38% 20.0 3.00% Credit Card
Slide 13: Healthy deposit growth of 12% vs LY
Healthy deposit growth of 12% vs LY Historical Deposits & CASA Cash management solutions to support CASA growth… In Php Billions, ▲19% Doubled CheckScan transaction values, CASA year-on-year up 110% receivables vs previous year growth 957 857 Sustained growth in CashCube business up 72% receivab
Slide 14: Leader in digital, AI and customer service
Leader in digital, AI and customer service • Relaunched RCBC Pulz & crossed 1M enrolled users • Launched RCBC Boz, an all-in-one SME app • Sustained growth in digital transaction volume of 33% • 51 AI models developed internally • 43 dashboards used by 2,200 RCBC Bankers • 164 senior officers taking
Slide 15: Multiple digital platforms for different segments
Multiple digital platforms for different segments All-in-one hub RCBC’s financial PH’s 1st neighborhood & RCBC’s industry-leading inclusion super app last mile ATM network mobile banking app with DiskarTech will pivot into a bringing formal banking to the most comprehensive more loans-focused app wi
Slide 16: Accumulated 50 awards for 2023 alone
Accumulated 50 awards for 2023 alone • Philippines’ Domestic Cash Management Bank of the Year • Philippines’ Domestic Trade Finance of the Year • SME Bank of the Year – Philippines • Remittance Company of the Year • Credit Card Initiative of the Year • Marketing and Brand Initiative of the Year • ES
Slide 17: Frontrunner in Sustainability
Frontrunner in Sustainability 2011 2019 2020 2021 2022 X P49B RCBC’s first foray into RCBC establishes first sustainable First Philippine bank to RCBC’s P17.9B ASEAN Green & sustainability sustainability. The Env’tl and finance framework under the publicly announce our Sustainability Bond earned bon
Slide 18: Consolidated key financial indicators
Consolidated key financial indicators Dec-23 Dec-22 Change PROFITABILITY Return on Equity 9.5% 11.2% -1.7% Return on Assets 1.1% 1.2% -0.1% Net Interest Margin 3.4% 3.7% -0.3% COST EFFICIENCY Cost-to-Income Ratio 59.3% 56.5% 2.8% ASSET QUALITY Net NPL Ratio 1.6% 2.0% -0.4% NPL Coverage Ratio 89.6% 8
Slide 19: Question & Answer
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Slide 20: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com 20
Slide 21: FY 2023 Analysts' Briefing
FY 2023 Analysts’ Briefing March 2024 21
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