Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q3 2024 Earnings Presentation
28 slides from Rizal Commercial Banking's earnings presentation, Dec 10, 2024
Slide 1: RCBC 3Q 2024 Investor Presentation
RCBC 3Q 2024 Investor Presentation December 10, 2024
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: 9M 2024 Performance
9M 2024 Performance Chrissy P. Alvarez Corporate Planning Head 3
Slide 4: 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 5: 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 6: 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 7: 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 8: Strong capital ratios and steady growth trajectory
Strong capital ratios and steady growth trajectory 17.37% 16.24% 16.14% Capital Adequacy 16.13% 15.29% Ratio 13.76% 15.23% 16.5% 15.4% 13.3% 15.2% 12.3% Tier 1 Capital 12.8% 14.3% Ratio CET1 Ratio 14.0% 14.7% 13.7% 13.3% 12.8% 12.6% 12.1% 2018 2019 2020 2021 2022 2023 9M 2024 8
Slide 9: 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 3% 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 10: 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% 5.00% Corporate 1.6% 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: General Information
General Information Overview, Milestones & Ownership 19
Slide 20: 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 21: Overview of RCBC
Overview of RCBC Rizal Commercial Banking Corporation (RCBC) is the 5th largest privately-owned bank in the Philippines, with over Php 1.3 trillion in total resources as of June 30, 2024. Main Business Lines Investment Information Particulars As of October 2024 Corporate Banking SME Banking Digital
Slide 22: 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
Slide 23: Appendix
RCBC Appendix
Slide 24: Consolidated income statement
Consolidated income statement 9M2024 9M2023 Change % Change Interest Income 58,517 48,011 10,506 21.9% Interest Expense 27,585 23,765 3,820 16.1% Net Interest Income 30,931 24,246 6,686 27.6% Other Income 7,978 11,706 (3,728) (31.8%) Trading Gains and Forex 515 909 (394) (43.3%) Trust Fees - 306 (30
Slide 25: Consolidated balance sheet
Consolidated balance sheet 9M2024 9M2023 Change % Change Cash/Due from BSP & Other Banks 122,064 176,018 (53,954.00) (31%) Investment Securities 398,100 346,500 51,600.00 15% Loans (net of Interbank) 681,222 604,050 77,172.00 13% Other Assets 83,406 73,697 9,709.00 13% TOTAL ASSETS 1,284,792 1,200,2
Slide 26: Historical income statement
Historical income statement 2019 2020 2021 2022 2023 9M2024 Net Interest Income 22.4 26.3 28.8 31.2 33.6 30.9 Other Income 13.5 11.6 7.6 13.2 16.4 6.8 Gross Income 35.9 37.9 36.4 44.5 49.9 37.7 Impairment Losses 7.4 9.4 6.0 5.7 6.9 5.6 Income before Operating Expenses 28.5 28.5 30.3 38.7 43.1 32.1 O
Slide 27: Historical balance sheet
Historical balance sheet 2019 2020 2021 2022 2023 9M2024 Cash/Due from BSP/Due from Other Banks 123 148 157 181 187 122 Loans Arising From REPO 6 13 12 9 36 30 FVPL/FVTCI 60 45 56 122 94 140 Held to Maturity Investments 101 43 164 252 237 257 Interbank Loans and Receivables 19 43 31 28 28 16 Loans (
Slide 28: Historical key financial ratios
Historical key financial ratios 2019 2020 2021 2022 2023 9M2024 Return on Average Capital Funds 6.50% 5.50% 6.70% 11.24% 9.53% 5.20% Return on Average Assets 0.80% 0.70% 0.80% 1.17% 1.06% 0.70% Net Interest Margin 4.00% 4.30% 4.10% 3.70% 3.43% 3.82% Cost-to-Income Ratio 60.80% 58.20% 61.90% 56.46% 5
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