Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2021 Earnings Presentation
23 slides from Rizal Commercial Banking's earnings presentation, Mar 3, 2022
Slide 1: FY 2021 Analysts' Briefing
FY 2021 ANALYSTS’ BRIEFING 3 March 2022 02:00 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: Performance Overview
Performance Overview Mr. Ricky E. Cebrero RCBC Treasurer and Head of Treasury Group 3
Slide 4: The Bank expects recovery in 2022
The Bank expects recovery in 2022 2022 2021 2020 Economic Indicators Forecast Actual Actual GDP Growth 6.0%-6.5% 5.6% (9.5%) USD/PhP (Year-End) 52.00-53.00 50.999 48.02 USD/PhP (Average) 51.50-52.50 49.25 49.62 Inflation (Average) 3.5%-4.0% 3.9% 2.6% BSP Policy Rate 2.75%-3.00% 2.00% 2.00% PSEi 7,50
Slide 5: FY 2021 Overview
FY 2021 Overview Ms. Chrissy P. Alvarez RCBC Corporate Information Officer and Head of Corporate Planning Group 5
Slide 6: RCBC's 2021 profit climbs 41% to record high 7.1B
RCBC’s 2021 profit climbs 41% to record high 7.1B 35.4B 7.1B 508B 672B 111B 15.2% Revenues1 Net Income Loans2 Deposits Capital CAR +13% +41% +13% +26% +10% Profitability Growth Resilience Core income expanded as the Bank built up 6th largest private universal bank in terms of Capital ratios remain w
Slide 7: RCBC's 2021 profit climbs 41% to record high 7.1B
RCBC’s 2021 profit climbs 41% to record high 7.1B *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: 4Q 2021 net income up 72% vs same quarter last year
4Q 2021 net income up 72% 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 8
Slide 9: Upward momentum boosted by core income
Upward momentum boosted by core income Healthy return on equity sustained as core Higher volume of loan and treasury assets, coupled with income expanded, tempered by lower trading lower funding costs, propelled net interest income higher and FX gains 10% 8 8% 6.7% 6.5% 6.7% 5.8% 5.5% 28.8 6% 7 26.3
Slide 10: Stronger balance sheet with growth in risk assets and diversified funding portfolio
Stronger balance sheet with growth in risk assets and diversified funding portfolio Customer Loans Investment Securities 12% 513 513 2.5x 219 194 487 178 482 116 457 88 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Deposits Capital 26% 672 10% 110 111 627 598 563 10
Slide 11: 12% customer loan expansion higher than industry
12% customer loan expansion higher than industry The Bank built up loans and receivables Loan growth continued to outperform industry and peers mostly from the corporate and SME segments Loan Portfolio Loan Portfolio growth Breakdown by customer segment RCBC vs Industry 513 12% 457 12% 28% 11% 30% 5
Slide 12: Selective lending strategy through data analytics generated substantial gains
Selective lending strategy through data analytics generated substantial gains Loan expansion was focused on key segments, where pockets of opportunities were brought about through data science 20% 233% 51% Increase in loans from top Growth in new Rise in credit card issuances conglomerates SME accou
Slide 13: RCBC at the forefront of sustainable financing
RCBC at the forefront of sustainable financing We are the first Philippine universal bank to issue green and sustainable financing instruments under global standards PhP 67B USD 1.1B 3.06 GW Loans eligible under Raised under the Bank’s Total renewable energy sustainable financing Sustainable Finance
Slide 14: Robust credit management stabilizes NPL ratio
Robust credit management stabilizes NPL ratio Elevated NPL ratio driven by the increase in consumer NPLs, but remained stable during the year on account of tightened credit management and improving economic conditions 30.0 3.3% 3.3% 3.3% 3.5% 3.2% 2.9% 3.0% 25.0 2.5% 20.0 2.0% 15.0 1.5% 10.0 16.8 18
Slide 15: 26% deposit rise stronger than industry average
26% deposit rise stronger than industry average Higher CASA and time deposits supported the Solid double-digit growth in deposits better than industry Bank’s asset build-up strategy and peers Deposits Deposit growth Breakdown by type RCBC vs Industry 672 26% 536 299 17% 28% 233 10% 9% 9% 8% 23% 373
Slide 16: Delivering customer-centric innovation
Delivering customer-centric innovation Innovative digital solutions for both retail and corporate clients drive customer acquisition and increase usage 259% 32% 77% More new retail accounts on- Growth in low-cost CASA Increase in cash processed boarded digitally deposits from cash via RCBC’s CashCub
Slide 17: Digital transactions augment the diversified fee revenue
Digital transactions augment the diversified fee revenue Robust investment banking engagements and Sources of fees remain stable and diversified, with more retail and digital transactions allowed fee increasing share from digital transactions income to expand by 29% from last year Fee Income Fee Inc
Slide 18: RCBC Digital made even more powerful
RCBC Digital made even more powerful 75% Increase in RCBC Digital 70% Growth in InstaPay 191% Growth in PESONet transaction value transaction value transaction value RCBC continued to introduce industry-leading digital solutions with the addition of features such as QR payments and forex trading QR
Slide 19: RCBC is the Philippines' BEST DIGITAL BANK
RCBC is the Philippines’ BEST DIGITAL BANK recognized for its strong franchise across business lines 19
Slide 20: Reimagining the branch banking experience
Reimagining the branch banking experience 281 Branches converted to Zero Forms to fill out1 50% Reduction in required client Branch of Today signatures RCBC Plaza Branch [1] Additional one (1) form to fill out & sign if client applies for Hexagon Club Membership (i.e., Hexagon enrollment Form) 20
Slide 21: Consolidated key financial indicators
Consolidated key financial indicators 2021 2020 Change PROFITABILITY Return on Equity 6.7% 5.5% 1.2% Return on Assets 0.8% 0.7% 0.2% Net Interest Margin 4.1% 4.3% (0.2%) COST EFFICIENCY Cost-to-Income Ratio 61.9% 58.2% 3.8% ASSET QUALITY Net NPL Ratio 3.3% 2.9% 0.4% NPL Coverage Ratio 63.7% 79.2% (1
Slide 22: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com 22
Slide 23: FY 2021 Analysts' Briefing
FY 2021 ANALYSTS’ BRIEFING 3 March 2022 02:00 pm 23
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