Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Investor Presentation (September 2019)
29 slides from Rizal Commercial Banking's investor presentation, September 2019
Slide 1: RCBC Investor Presentation September 2019
RCBC Investor Presentation SEPTEMBER 2019
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: Table of Contents
Table of Contents Introducing RCBC Financial Overview Strategic Initiatives Recognition Appendix - Financial Information
Slide 4: 1. Introducing RCBC
Investor Presentation SEPTEMBER 2019 1. Introducing RCBC
Slide 5: RCBC is a leading financial services provider in the Philippines
RCBC is a leading financial services provider in the Philippines RCBC is the 8th largest private domestic bank in the Philippines by assets, with a market capitalization of Php51.28bn (USD0.99bn)1, share price of Php26.502 . Incorporated on 23 September 1960 as Rizal Development Bank and receive
Slide 6: Investment Information
Investment Information • RCBC’s Stock Rights Offering (SRO) of 535,710,378 million shares were listed in the Philippine Stock Exchange (PSE) on July 16, 2018 and the gross proceeds amounting to PHP14,999,890,584 were booked on the same date. • The shares were offered at PHP28.00 with entitlement rat
Slide 7: 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 wid
Slide 8: Ownership Structure
Ownership Structure Cathay Life Insurance 23.35% Pan Malayan Management and Investment Corp. (PMMIC) & Affiliates of the Yuchengco Group of Companies (YGC) 52.42% International Finance Corporation 5.57% Public Float 18.66% 8
Slide 9: Comprehensive and Diversified Business Platform
Comprehensive and Diversified Business Platform RCBC Forex Brokers RCBC Capital Rizal Micro Bank RCBC Leasing RCBC Intl Finance Corporation Corporation Microfinance Thrift Leasing Hong Kong Financing Foreign Exchange Investment Bank Bank Company Company Broker RCBC Rental RCBC Investment Ltd RCBC Se
Slide 10: Key Milestones
Key Milestones 1960-1970s 1980-1990s 2000s 2010s 2011 September 1960 1985 2000 Formed alliances with IFC and CVC Capital Partners RCBC was Continental Illinois Bank Acquired 67% stake in Formed Bancassurance partnership with Sunlife GREPA incorporated and sold its shareholding to UFJ Banka
Slide 11: Industry Ranking
Industry Ranking RCBC has about 4% market share in Total Assets, Loans and Deposits among Universal / Commercial banks in the Philippines as of Sep 30, 2019. Assets Deposits In PHP Billion In PHP Billion 3,049 2,408 2,345 2,114 1,622 1,578 1,171 949 822 778 807 681 674 487 424 418 389 341 292 292 BD
Slide 12: RCBC has a broad, nationwide distribution network
RCBC has a broad, nationwide distribution network Branch distribution by Region September 2019 CAR I: Ilocos 3 16 8 II: Cagayan Valley Region III: Central 42 IV-A: Calabarzon Luzon NCR: Metro Manila 201 83 7 V: Bicol Region IV-B: Mimaropa VIII: VI: 6 Eastern Western Visayas 6 Visayas 25 31 VII: Cent
Slide 13: Investor Presentation
Investor Presentation SEPTEMBER 2019
Slide 14: Income Statement
Income Statement RCBC (Consolidated) 3Q 2019 (Unaudited) vs. 3Q 2018 Amount in millions Php 3Q 2019 3Q 2018 Peso Income Statement - Year to Date % Change (Unaudited) (Audited) Change Interest Income 28,069 22,108 5,961 27.0% Interest Expense 11,674 7,262 4,412 60.7% Net Interest Income 16,395 14,846
Slide 15: Balance Sheet
Balance Sheet RCBC (Consolidated) 3Q 2019 (Unaudited) vs. 3Q 2018 Amount in millions Php As of Sep. As of Sep. Peso Balance Sheet % Change 30, 2019 30, 2018 Change Cash/Due from BSP & Other Banks 80,482 93,796 (13,314) -14.2% Investment Securities 108,628 97,669 10,959 11.2% Loans- net (including in
Slide 16: 3. Strategic Initiatives
Investor Presentation SEPTEMBER 2019 3. Strategic Initiatives
Slide 17: High proportion of low-cost deposits, to be boosted by cash management initiatives
High proportion of low-cost deposits, to be boosted by cash management initiatives CAGR ’15-’18 = 5.5% • The Bank has a diversified depositor base, 500 423 424 from both the retail and corporate segments. 450 388 400 342 353 • Moving forward, the bank will continue to focus 350 183 193 on building i
Slide 18: Well-diversified loan portfolio, focused on consumer and SME loans
Well-diversified loan portfolio, focused on consumer and SME loans CAGR ’15-’18 = 9.5% Total Loans • The Bank will continue to forge strategic In Php Billion 413 partnerships with major car dealerships and 390 353 1 developers to support its loan growth initiative 1 305 1 28 297 22 0 1 16 90 98 • RC
Slide 19: Diverse and Stable fee-based revenue
Diverse and Stable fee-based revenue Fee Income Trend STRATEGY TO BUILD FEE-BASED INCOME 3,759 4,106 3,490 3,417 3,601 Retail Banking: Build a large mass affluent client base, including prepaid (MyWallet) and payroll customers, and increase no. of transactions such as payment (i.e. bills) and purcha
Slide 20: RCBC is commencing its Digital Transformation
RCBC is commencing its Digital Transformation Transformation centered on creating delightful customer experiences Ongoing Initiatives Enhancement and relaunch of the Bank’s digital channels (mobile and online banking, website) Dedicated and world-class Data Science team, enabling RCBC to leverage on
Slide 21: The Bank is a leader in Green and Sustainable finance
The Bank is a leader in Green and Sustainable finance • RCBC is the first Philippine universal bank to issue peso-denominated sustainable and green financing under global standards • About 12% (48.2Bn) of the Bank’s loan portfolio are for Green and Sustainable financing Green and Sustainable Loan Po
Slide 22: 4. Recognition
Investor Presentation SEPTEMBER 2019 4. Recognition
Slide 23: Awards
Awards World Finance — Best Banking Group in the Philippines –2013, 2014, 2017 — Best Commercial Bank in the Philippines –2017 AsiaMoney — Best Bank for SMEs in the Philippines - 2018 — Best Domestic Private Bank in the Philippines - 2013, 2014 — Best for Credit Derivatives - 2016 — Best Market Cove
Slide 24: Awards
Awards —RCBC bagged awards for two marketing campaigns (Best Brand Program and Best Other Awards Kiddie Program) during the the 3rd BMAP Marketing Awards - 2019 in the Area —RCBC received several awards, among them six Quill Awards from the International of Communications and Association of Business
Slide 25: 5. Appendix
Investor Presentation SEPTEMBER 2019 5. Appendix
Slide 26: Consolidated Income Statement
Consolidated Income Statement (PhP bn) YTD Sep 2013 2014 2015 2016 2017 2018 2019 Net Interest Income 13.31 14.97 15.58 15.71 18.02 20.49 16.40 Total Non Interest Income 9.81 7.10 6.66 7.11 7.10 6.01 11.33 Gross Income 23.12 22.07 22.23 22.82 25.12 26.50 27.73 Provision for Loan Losses 2.05 2.51 2.3
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet (PhP bn) YTD 2013 2014 2015 2016 2017 2018 Sep Cash/Due from BSP/Due 70 76 84 107 93 94 80 from Other Banks Loans Arising From REPO 0 0 0 8 10 10 20 FVPL/FVTCI 3 21 9 24 13 30 72 Held to Maturity Investments 89 80 102 52 60 89 37 Interbank Loans Receivables 21 0.3 0.0 0.5
Slide 28: Consolidated Key Ratios
Consolidated Key Ratios YTD Sep 2013 2014 2015 2016 2017 2018 2019 Return on Average Capital 12.2% 9.2% 9.3% 6.4% 6.7% 5.8% 7.3% Funds Return on Average Assets 1.4% 1.0% 1.1% 0.8% 0.8% 0.7% 0.9% Net Interest Margin 4.2% 4.3% 4.2% 4.1% 4.3% 4.0% 3.9% Cost-to-Income Ratio 61.2% 64.5% 67.7% 76.1% 70.9%
Slide 29: Thank you
RCBC Thank you.
Rizal Commercial Banking Corporation (RCBC) — Investor Presentation (September 2019) on 6ix