Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — 9M 2024 Earnings Presentation
25 slides from Rizal Commercial Banking's earnings presentation, Nov 14, 2024
Slide 1: 9M 2024 Analysts' Briefing
9M 2024 Analysts’ Briefing November 14, 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: Opening Remarks
Opening Remarks Bennett Clarence Santiago Credit Management Head 4
Slide 5: Macroeconomic Outlook
Macroeconomic Outlook Michael Ricafort Chief Economist 5
Slide 6: Market forecasts and catalysts for 2024
Market forecasts and catalysts for 2024 Philippine GDP Growth Estimates (2024-2025) Key Market Catalysts: Multilateral 2024 2025 Institutions Forecast Forecast Impact of U.S presidential election results IMF* 5.8% (from 6.0%) 6.1% (from 6.2%) 1 2025 Fed rate cut estimate revised to -0.50 (from 1.00)
Slide 7: Market forecasts and catalysts for 2024
Market forecasts and catalysts for 2024 Philippine Economic Outlook US & Philippine Policy Rate Outlook 2023 2024 2025 Economic Indicators Economic 3-Month 6-Month 1-Year Actual Forecast Forecast Indicators Forecast Forecast Forecast GDP Growth 5.5% 5.8%-6.1% 6.0%-6.5% BSP Policy Rate USD/PhP (Year-
Slide 8: 9M 2024 Performance
9M 2024 Performance Chrissy P. Alvarez Corporate Planning Head 8
Slide 9: Our financial performance at a glance
Our financial performance at a glance Driving Core • Earning assets jumped 11% on the back strong growth in loans ₱6.2B ₱698B • Sustained recovery of NII amid loan growth net income in loans; driven by Business Growth consumer • Service fees and commissions up by 32% vs. year ago Strengthening • Hea
Slide 10: Summary of Consolidated Financial Results
Summary of Consolidated Financial Results 9M2024 9M2023 Change % Change INCOME STATEMENT Gross Income 37,767 43,702 5,935 (13.6%) Net Interest Income 30,931 24,246 6,686 27.6% Fee Income 6,275 5,056 1,220 24.1% Operating Expenses 23,289 21,893 1,396 6.4% Impairment Losses 5,612 4,957 655 13.2% Net I
Slide 11: Sustained profitability amidst one-off impacts
Sustained profitability amidst one-off impacts ▲26% Gross Revenue Quarterly Net Interest Income Q-on-Q In Php Billions, except % In Php Billions, except % Net Interest Income ▲5% 11.2 42 Y-on-Y 38 9.3 9.6 10.1 Gross 8.9 Revenue1 36 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Net Interest Income Adjusted Gros
Slide 12: Fueling profits: Strategic asset growth & optimized funding
Fueling profits: Strategic asset growth & optimized funding Expanding asset base driving sustainable Favorable rate outlook reducing funding cost pressures income growth BSP policy rate (O/N RRP rate) outlook in %, as of end of period YoY Growth 1,083 200-250 BPS of 13% 1,048 1,045 2022 2023 2024 20
Slide 13: Accelerating portfolio growth through consumer loans
Accelerating portfolio growth through consumer loans Loan Portfolio1 +11% YoY Loan Mix In Php Billions, except % As of September 30, 2024 PL/SL 1% 512 543 622 608 677 Consumer SME Corp Auto Housing 22% +40% 37% 28% 29% 31% YoY Consumer 33% 39% Loans 42% 39% 18% 20% 20% +9% 677B Credit Card 20% 38% 1
Slide 14: Maintained stable asset quality in all segments
Maintained stable asset quality in all segments Gross NPL amount and ratio Gross NPL ratio per segment In Php Billions, except % As of September 30, 2024 40.0 5.10% 4.58% Corporate 1.6% 5.00% 35.0 4.04% 3.91% 3.83% 3.75% 3.77% 3.77% 3.74% 3.51% 4.00% 3.34% 30.0 SME 4.7% 3.00% 25.0 2.00% Consumer 4.6
Slide 15: Exceptional growth in credit cards and loan bookings
Exceptional growth in credit cards and loan bookings 1.21M P139B P98B Monthly PL/SL loans now at over 1 BN cards in force; 19% higher in issuing billings; 43% in balances; 51% New Personal Loans Volume In Php Millions than last year, 281k new higher compared to year improvement from last cards as of
Slide 16: Consistent portfolio growth and industry-leading asset quality
Consistent portfolio growth and industry-leading asset quality Auto & housing loan portfolio Gross NPL ratio In PhP Billions As of end of each period 154.9 UKB Industry 14.1% UKB Housing 11% 25% Industry Auto 21% 31% Housing 7.0% 5.6% Auto 5.4% 2.8% 122.4 8.1% 103.5 103.1 5.4% 4.6% 2021 2022 2023 Se
Slide 17: Record-high bookings propel 30% growth in consumer segment
Record-high bookings propel 30% growth in consumer segment Auto & Housing Portfolio and Gross NPL In Php Billions, except % Continued transformation of housing & auto loans business to sustain the double digit 8.5% growth momentum 170 6.23% 6.5% 5.38% 4.93% 4.73% Targeted acquisition and cross-selli
Slide 18: CASA-driven growth and expansion of deposit base
CASA-driven growth and expansion of deposit base Historical Deposits & CASA Cash management solutions to support CASA In Php Billions ▲4% growth… Y-on-Y CASA 957 990 902 857 672 536 502 502 485 Cash Cube CheckScan Bills Collection 423 457 421 373 302 on top of stronger corporate and SME banking 231
Slide 19: Multiple digital platforms for different segments
Multiple digital platforms for different segments P526M RCBC’s financial P324M in revenue, up by deposits, 46% higher All-in-one hub 24% vs. YAGO inclusion super app vs. YAGO RCBC’s industry-leading DiskarTech will pivot into a mobile banking app with more loans-focused app the most comprehensive fe
Slide 20: Data & AI for smart & targeted actions
Data & AI for smart & targeted actions Cross-sell & CX 22 ML models based on product propensity for various customer segments Credit, Risk & Fraud 11 ML models for risk mitigation & fraud detection Forecasting & Network 3 ML models for Expected Credit Losses (ECL) & client network analysis Segmentat
Slide 21: 55 awards across various fields
55 awards across various fields Best Customer Digital Bank of Experience Bank the Year Philippines 2024 Philippines SME Bank of Best ATM Project the Year ATMGo Philippines Philippines Best Corporate Bank Philippines
Slide 22: Consolidated key financial indicators
Consolidated key financial indicators 9M2024 9M2023 Change PROFITABILITY Return on Equity 5.2% 9.8% -4.6% Return on Assets 0.7% 1.1% -0.4% Net Interest Margin 3.8% 3.4% 0.4% COST EFFICIENCY Cost-to-Income Ratio 61.7% 60.9% 0.8% ASSET QUALITY Net NPL Ratio 2.0% 1.7% 0.3% NPL Coverage Ratio (excluding
Slide 23: Question & Answer
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Slide 24: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com 24
Slide 25: 9M 2024 Analysts' Briefing
9M 2024 Analysts’ Briefing November 2024 25
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