Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2017 Earnings Presentation
25 slides from Rizal Commercial Banking's earnings presentation, 2018
Slide 1: Investor Presentation Full-Year 2017
INVESTOR PRESENTATION Full-Year 2017 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 • Regular cash dividends paid annually Equity Profile Dividends History Dividends Particulars FY 2017 Year Pay-out ratio per share Ticker RCB FY 2017 0.55 20.00% Issued shares 1,399.92 mn 2016 0.72 20.00% Stock Price P55.35 2015 0.60 19.29% Market Cap P77.49bn (U
Slide 7: Credit Ratings
Credit Ratings (Investment Grade rating by Moody’s on November 23, 2017) Moodys [1] Fitch [2] Long Term Deposit Baa2 / P-2 - Long Term IDR - BB+ Senior Unsecured Baa2 BB+ Bank Financial - - Strength Outlook Stable Stable [1] As of November 23, 2017 [2] As of December 13, 2017 7
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 incorporated and sold its shareholding to UFJ Inc. Formed Bancassurance partn
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, 2017. Total Assets (in Blns) Total Deposits (in Blns) 3,000 2,645 2,500 2,122 2,500 2,085 1,897 2,000 2,000 1,564 1,529 1,500 1,500 831 755 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 57 years. • Our new l
Slide 13: 2. Financial Overview
NN <) 2. Financial Overview 13
Slide 14: Income Statement
Income Statement RCBC (Consolidated) As of Dec. 31, 2017 vs. same period last year (Amount in millions) As of Dec. As of Dec. Peso Income Statement - Year to Date % Change 31, 2017 31, 2016 Change Interest Income 25,118 23,137 1,981 8.6% Interest Expense 7,097 7,430 (333) -4.5% Net Interest Income 1
Slide 15: Balance Sheet
Balance Sheet RCBC (Consolidated) (Amount in millions) As of Dec. As of Dec. Peso Balance Sheet % Change 31, 2017 31, 2016 Change Cash/Due from BSP & Other Banks 14,693 15,176 (483) -3.2% Investment Securities 72,932 75,622 (2,690) -3.6% Loans- net (including interbank) 354,243 306,167 48,076 15.7%
Slide 16: Loans: Growth by Segment
Loans: Growth by Segment • Successfully executed SME & consumer loan growth strategy FY 2017 FY 2016 Growth Mix Mix Corporate 61% 62% 11% SME 13% 12% 35% Consumer 26% 26% 16% Consumer- 12% 12% 13% Mortgage Total 100% 100% 16% 16
Slide 17: Loans: Sustainable Portfolio Quality
Loans: Sustainable Portfolio Quality RCBC has one of the lowest NPL ratios in the sector and prudent loan loss coverage 120% 4.0% 3.10% 3.5% 100% 3.75% 102.10% 97.35% 101.65% 3.0% 94.05% 93.78% 80% 87.59% 82.51% 2.5% 81.97% 71.98% 60% 2.0% 1.85% 1.5% 40% 1.62% 1.25% 1.0% 20% 1.07% 0.90% 0.98% 0.5% 0
Slide 18: Self Funding
Self Funding Increasing growth and proportion of CA/SA deposits serves to lower overall funding costs 450 Customer deposits (PHP bn) CA/SA to Total Deposits (%) 400 388 353 350 342 397 316 300 255 247 250 237 221 56% 196 200 176 157 150 100 223 205 217 43% 185 196 144 141 50 105 120 68 78 87 0 2006
Slide 19: Establish Broad Distribution Channels
Establish Broad Distribution Channels Branch and ATM Network 2,000 1,562 1,488 1,500 1,342 1,150 1,202 1,010 1,000 761 609 380 471 456 481 508 500 389 420 435 449 325 350 371 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Branches ATMS ATM to Branch ratio 0.87:1 3.07:1 19
Slide 20: 3. Recognition
3. Recognition 20
Slide 21: Awards and Recognition
World Finance — Best Banking Group in the Philippines – 2012, 2013, 2014, 2017 — Best Commercial Bank in the Philippines – 2011, 2017 AsiaMoney — Best Domestic Private Bank in the Philippines - 2012, 2013, 2014 — Philippines’ Overall Best for Interest Rates - 2012 — Best for Interest Rate Derivative
Slide 22: 4. Appendix – Financial Information
4. Appendix – Financial Information 22
Slide 23: Consolidated Income Statement
Consolidated Income Statement (PhP bn) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net Interest Income 8.82 8.47 10.27 10.88 10.84 11.40 13.31 14.97 15.58 15.71 18.02 Total Non Interest Income 4.38 4.6 5.89 8.41 10.09 11.34 9.81 7.10 6.66 7.11 7.10 Gross Income 13.20 13.07 16.16 19.29 20.
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet (PhP bn) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cash/Due from BSP/Due 28 28 29 36 46 52 70 76 84 107 93 from Other Banks Loans Arising From REPO 0 0 0 0 0 0 0 0 0 8 10 FVPL/FVTCI 65 26 46 71 88 95 3 21 9 24 13 Held to Maturity Investments - 21 20 19 0 0 89
Slide 25: Consolidated Key Ratios
Consolidated Key Ratios 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Return on Average Capital 12.4% 7.4% 12.0% 14.1% 16.6% 16.1% 12.2% 9.2% 9.3% 6.4% 6.7% Funds Return on Average Assets 1.4% 0.9% 1.2% 1.5% 1.6% 1.7% 1.4% 1.0% 1.1% 0.8% 0.8% Net Interest Margin 5.0% 4.3% 4.6% 4.6% 4.1% 3.9
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