Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — 9M 2022 Earnings Presentation
30 slides from Rizal Commercial Banking's earnings presentation, Nov 10, 2022
Slide 1: RCBC 9M 2022 Analysts' Briefing
RCBC 9M 2022 ANALYSTS’ BRIEFING 10 November 2022 4:00 PM 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: Investor Presentation 9M 2022
Investor Presentation 9M 2022 01 RCBC 9M 2022 Performance 02 SMBC Capital Infusion 03 General Information 04 Appendix 3
Slide 4: RCBC 9M 2022 Performance
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Slide 5: 9M 2022 Highlights
9M 2022 Highlights 10.1B 67% 1.1T Net income Investment Total assets up 88% securities growth up 23% 801B 15.3% in deposits with Capital adequacy 28% growth YoY ratio 6
Slide 6: RCBC is a leading financial services provider in the PH
RCBC is a leading financial services provider in the PH Incorporated in 1960, RCBC is the 6th largest private universal bank in the Philippines by assets, with a market capitalization of PhP43.5B (USD 0.7B) as of end-September 2022. It was also recognized as the Best Digital Bank, Best Retail Bank a
Slide 7: RCBC posted 88% growth in profit in 9M 2022
RCBC posted 88% growth in profit in 9M 2022 9M 2022 9M 2021 Change % Change INCOME STATEMENT 1 Gross Income 34,595 26,718 7,877 29.5% Net Interest Income 23,955 21,164 2,791 13.2% Fee Income 4,335 3,687 648 17.6% Operating Expenses 19,010 16,837 2,173 12.9% Impairment Losses 3,614 3,930 (316) (8.0%)
Slide 8: 30% increase in gross income on double-digit growth in core business
30% increase in gross income on double-digit growth in core business, fee income and other income. Net interest income sustained its double digit Net interest income rose on the back of 24% year-on-year growth rate at 13% while fee income grew 18% growth in earning assets (versus 15% industry benchm
Slide 9: Loan portfolio expansion driven by SME & Credit Card
Loan portfolio expansion driven by SME & Credit Card Loan Portfolio1 Loan Mix In Php Billions, except % As of September 2022 PL/SL Consumer SME Corp 1% Auto 543 +6% 26% 513 Housing 44% Consumer 28% Loans 151.4 +7% 141.8 Credit 53% 543B Card 29% 89.3 104.5 +17% 19% 280.3 285.5 +2% Increase in consume
Slide 10: Asset quality continued to improve significantly
Asset quality continued to improve significantly Net NPL Amount and Ratio Net NPL per Segment In Php Billions, except % As of September 2022 20.0 3.2% 3.3% 3.3% 3.3% 3.2% Sept-22 Sept-21 2.7% 3.0% 18.0 2.2% Corporate 0.3% 1.3% 16.0 2.0% 14.0 SME 2.1% 1.9% 12.0 1.0% 10.0 Consumer 7.8% 10.2% 18.0 18.3
Slide 11: Digital platforms achieve fintech-like growth
Digital platforms achieve fintech-like growth 361k 760k 1.2M 5.6M 980 1472 Enrolled Enrolled Basic deposit & Total app Merchant & Terminals users users accounts downloads partners 2019 Sep 2022 We continue to build RCBC as the Transaction Value Transaction Value Transaction Value favored digital ban
Slide 12: RCBC Digital poised to become most fully-featured banking app in PH
RCBC Digital poised to become most fully-featured and best designed banking app in PH 16
Slide 13: 28% growth in deposits with CASA to deposit ratio at 50%
28% growth in deposits with CASA to deposit ratio at 50% CASA continued to post double-digit growth versus year-ago levels and outperforming industry. Similarly, TDs grew over twice as fast as industry at 47% year-on-year (versus 20% industry benchmark). Deposit breakdown CASA deposits In PhP Billio
Slide 14: Consolidated key financial indicators
Consolidated key financial indicators Sep 2022 Sep 2021 Change PROFITABILITY Return on Equity 11.2% 6.8% 4.4% Return on Assets 1.2% 0.9% 0.3% Net Interest Margin 3.9% 4.1% (0.2%) COST EFFICIENCY Cost-to-Income Ratio 54.9% 63.1% (8.2%) ASSET QUALITY Net NPL Ratio 2.2% 3.3% (1.1%) NPL Coverage Ratio 7
Slide 15: SMBC's P27B Capital Infusion
SMBC’s P27B Capital Infusion 19
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: Capital infusion to fuel RCBC's growth engine
Capital infusion to fuel RCBC’s growth engine Pro-forma, total capital Pro-forma, CET1 ratio In PhP Billions In % 432 UBP 20.6% MBTC 16.8% SECB 16.7% 303 301 6th Pro-forma RCBC BPI 16.5% 15.9% 4th in capital on a pro forma CBC 14.8% basis post-SMBC P27.1B capital infusion 164 PNB 14.5% 140 139 124 1
Slide 18: Global best practices meet high growth potential
Global best practices meet high growth potential About SMBC SMBC is one of the largest banks in Japan and is the commercial banking arm of Sumitomo Mitsui Financial Group (“SMFG”). SMBC operates globally in retail banking, corporate banking, and investment banking, with a presence in approximately 4
Slide 19: Start of an enduring partnership
Start of an enduring partnership COLLABORATION x AREAS CORPORATE LEASING CONSUMER BANKING BUSINESS LENDING Joint efforts in Green Project Finance; Partnership between RCBC LFC and Global best practices from SMBC’s Deepening relationships with and Sumitomo Mitsui Finance and successful consumer finan
Slide 20: General Information
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Slide 21: Yuchengco Group of Companies
Yuchengco Group of Companies RCBC is a member of the Yuchengco Group of Companies (YGC), one of the premier business conglomerates in the Philippines. 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 ra
Slide 22: Investment Information
Investment Information Equity Profile Dividend History1 Credit Rating Dividends Pay-out Particulars 1H 2022 Year per share ratio Ticker RCB 2022 0.62 20.00% Long Term Deposit Baa3 Outstanding Senior Unsecured Baa3 2,037.48M 2021 0.49 19.96% shares Baseline Credit Stock Price PhP 19.38 2020 0.56 20.0
Slide 23: 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 24: Appendix
Appendix 28
Slide 25: Consolidated Income Statement
Consolidated Income Statement 9M 2022 9M 2021 Change % Change Interest Income 32,486 27,379 5,108 18.7% Interest Expense 8,532 6,215 2,317 37.3% Net Interest Income 23,955 21,164 2,791 13.2% Other Income 10,641 5,555 5,086 91.6% Trading Gains and Forex 230 711 (481) (67.6%) Trust Fees 303 288 15 5.3
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Sep 2022 Sep 2021 Change % Change Cash/Due from BSP & Other Banks 127,179 107,949 19,230 17.8% Investment Securities 324,783 194,237 130,546 67.2% Loans (net of Interbank) 565,963 525,887 40,076 7.6% Other Assets 56,505 44,894 11,612 25.9% TOTAL ASSETS 1,074,430 872,967 20
Slide 27: Historical Consolidated Income Statement
Historical Consolidated Income Statement 2018 2019 2020 2021 9M 2022 Net Interest Income 20.5 22.4 26.3 28.8 24.0 Other Income 6.0 13.5 11.6 7.6 10.6 Gross Income 26.5 35.9 37.9 36.4 34.6 Impairment Losses 1.9 7.4 9.4 6.0 3.6 Income before Operating Expenses 24.6 28.5 28.5 30.3 31.0 Operating Expens
Slide 28: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet 2018 2019 2020 2021 Sep 2022 Cash/Due from BSP/Due from Other Banks 94 123 148 157 127 Loans Arising From REPO 10 6 13 12 26 FVPL/FVTCI 30 60 45 56 72 Held to Maturity Investments 89 101 43 164 253 Interbank Loans and Receivables 10 19 43 31 27 Loans (net) 389 4
Slide 29: Historical Key Financial Indicators
Historical Key Financial Indicators 2018 2019 2020 2021 Sep 2022 Return on Average Capital Funds* 5.8% 6.5% 5.5% 6.7% 11.2% Return on Average Assets* 0.7% 0.8% 0.7% 0.8% 1.2% Net Interest Margin* 4.0% 4.0% 4.3% 4.1% 3.9% Cost-to-Income Ratio 73.2% 60.8% 58.2% 61.9% 54.9% CASA to Total Deposits 54.4%
Slide 30: For more information about RCBC, please contact Investor Relations
For more information about RCBC, please contact Investor_Relations@rcbc.com 34
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