Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2023 Earnings Presentation
21 slides from Rizal Commercial Banking's earnings presentation, May 12, 2023
Slide 1: RCBC 1Q 2023 Analysts' Briefing
RCBC 1Q 2023 ANALYSTS’ BRIEFING 12 May 2023 4:00 PM 1
Slide 2: Agenda
Agenda 01 Economic Outlook Michael L. Ricafort, RCBC Chief Economist 02 RCBC 1Q 2023 Performance Chrissy P. Alvarez, RCBC Corporate Planning Head & CIO 03 Q&A
Slide 3: A few reminders…
A few reminders… If your connection gets cut, Microphones will remain on If you have any concerns you may use the same link mute during the briefing during the briefing, you or meeting details to get proper and will be unmuted may send us a message back in. during the question and using the chatbox.
Slide 4: 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 5: RCBC is recognized for its strong franchise across business lines
RCBC is recognized for its strong franchise across business lines 5
Slide 6: Economic Outlook
Economic Outlook Mr. Michael L. Ricafort RCBC Chief Economist 6
Slide 7: 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 8: RCBC 1Q 2023 Performance
RCBC 1Q 2023 Performance Ms. Chrissy P. Alvarez RCBC Corporate Planning Head and Chief Information Officer 8
Slide 9: 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 10: 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 [1] 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 In
Slide 11: 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 12: 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 13: 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 14: SME accounted for over a third of Q1 loan growth
SME accounted for over a third of Q1 loan growth Historical SME Loans 87% In Php Billions Significant contribution particularly 17% of loan growth came from key areas in VisMin outside of NCR 4-yr CAGR 111 74% Providing uplift in the Bank’s CASA drive CASA to loans ratio 6.7% Higher-than-expected yi
Slide 15: Credit cards continued to outpace industry
Credit cards continued to outpace industry Credit card portfolio rose on the back of key acquisition and usage campaigns and use cases 44% 67% 46% more new card issuances jump in issuing billings, growth in card balances, or 50K new cards for the faster versus industry outperforming industry’s first
Slide 16: 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 17: Building the favored digital banking brand
Building the favored digital banking brand 47.5B 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 18: 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 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: RCBC 1Q 2023 Analysts' Briefing
RCBC 1Q 2023 ANALYSTS’ BRIEFING 21
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