Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2024 Earnings Presentation
24 slides from Rizal Commercial Banking's earnings presentation, Feb 25, 2025
Slide 1: RCBC FY 2024 Analyst Briefing
RCBC FY 2024 Analyst Briefing 1 February 25, 2025
Slide 2: Macroeconomic Outlook
Macroeconomic Outlook Michael Ricafort Chief Economist
Slide 3: Market forecasts and catalysts for 2025
Market forecasts and catalysts for 2025 Key Market Catalysts: Philippine GDP Growth Estimates (2025-2026) Multilateral 2025 2026 Fed uncertainty keeps rates elevated Institutions Forecast Forecast 1 10-year US Treasury yield at 4.49% with markets pricing in fewer rate cuts in 2025 due to inflation I
Slide 4: Market forecasts and catalysts for 2025
Market forecasts and catalysts for 2025 Philippine Economic Outlook US & Philippine Policy Rate Outlook Economic 2023 2024 2025 Economic 3-Month Challenger 6-Month 1-Year Indicators Actual Actual Forecast Indicators Forecast ForecastBank Forecast GDP Growth 5.5% 5.6% 6.0%-6.5% Strategy USD/PhP (Year
Slide 5: FY 2024 Performance
FY 2024 Performance Chrissy P. Alvarez Corporate Planning Head
Slide 6: Full Year 2024 Key Highlights
Full Year 2024 Key Highlights Driving strong core earnings and consumer loans 8,426 ₱9.5B • Sustained revenue growth with gross income up by 6.6% and NIM improving to 3.9% • Consumer lending momentum with 40% growth, led by credit cards, auto and housing loans ATMGo Terminals as net income of Decemb
Slide 7: Consolidated Financial Overview
Consolidated Financial Overview Income Statement FY24 FY23 Change YoY Financial Ratios FY24 FY23 YoY Gross Income 53,408 49,997 3,411 6.8% PROFITABILITY Net Interest Income 42,501 33,629 8,872 26.4% ROE 6.0% 9.5% -3.5% Fee Income 8,485 7,081 1,404 19.8% ROA 0.8% 1.1% -0.3% Operating Expenses 31,801
Slide 8: Sustained Revenue Boosted By Core Businesses
Sustained Revenue Boosted By Core Businesses Gross Revenue YoY Quarterly Net Interest Income 25% Q-on-Q 11.2 11.6 56.1 53.4 7% 9.3 9.6 10.2 3.9% 3.8% 3.7% 3.6% (34%) 3.4% 10.91 Q423 Q124 Q224 Q324 Q424 50 16.37 Net Interest Income Quarterly NIM Adjusted Gross Fee Income Revenue Excluding 18% non- Yo
Slide 9: Diversified Loan Portfolio Powered By Consumer Loans
Diversified Loan Portfolio Powered By Consumer Loans YoY Loan Portfolio1 Loan Mix 710 14% 622 Consumer Loans 285 40% 203 40% 40% 710B Auto Loans Housing Loans 127 138 9% 20% Credit Cards PL/SL 291 287 (1%) Consumer SME Corporate FY23 FY24 Corporate SME Consumer2 1Total Gross Loan to Customer 12 *Fig
Slide 10: Cost of Funds Pressure Eases as Yields Improved
Cost of Funds Pressure Eases as Yields Improved Quarterly 3.6% 3.7% 3.8% 3.9% 3.4% 7.08% 7.16% 7.20% 7.19% 6.71% 3.60% 3.55% 3.49% 3.43% 3.35% Q423 Q124 Q224 Q324 Q424 Cost of funds Asset Yield Quarterly NIM 13
Slide 11: Sustained Double-Digit Rise in Credit Cards & Consumer Loans
Sustained Double-Digit Rise in Credit Cards & Consumer Loans Consumer Loans & Credit Cards portfolio in PHP billions, % growth year-on-year CARDS +48% 70% Auto loan bookings compared to 2023; 35.4% 8.40% dealer-generated bookings doubled vs 17.4% industry MORTGAGE +24% 36% mortgage loan bookings vs.
Slide 12: Thriving Housing & Auto Loan Growth Drives 51% Expansion
Thriving Housing & Auto Loan Growth Drives 51% Expansion Housing loans YoY growth As of December 30, 2024 25.1% 25.6% 24.7% 24.0% 22.3% 18.1% 13.4% 10.7% 8.40% 10.9% 7.7% 7.3% 8.3% 7.9% 6.1% 2.7% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 RCBC UKB Industry Auto loans portfolio YoY growth 44.3% As of De
Slide 13: Outpacing The Industry In Cards and PL Growth
Outpacing The Industry In Cards and PL Growth Credit Card Issuing Billings In Php Billions 20.5 17.9 17.7 18.0 18.5 14.6 12.4 13.5 15.1 15.3 14.2 16.5 1.26M cards in force; 21% higher than last year, better than industry average of 14% Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 O
Slide 14: Managing NPLs
Managing NPLs Quarterly Loan Portfolio Per Segment and NPL ratio Gross NPL ratio per segment As of December 30, 2024 5.10% 4.58% 4.3% 4.04% 3.91% 3.83% 3.75% 3.77% 3.77% 3.74% 3.51% 3.34% Corporate 1.6% 28% 28% 29% 28% 29% 28% 30% 31% SME 7.9% 33% 35% 37% 39% Consumer 4.4% 18% 18% 19% 19% 20% 19% 20
Slide 15: Consumer NPLs Remain Well-Managed Below Industry Level
Consumer NPLs Remain Well-Managed Below Industry Level Housing Auto Credit Cards 14.0% 14.3% 13.8% 7.5% 10.4% 6.8% 8.7% 7.8% 8.7% 7.2% 7.1% 5.2% 4.3% 6.0% 4.0% 7.0% 5.0% 3.9% 6.2% 3.7% 5.6% 5.7% 3.5% 3.5% 3.8% 3.0% 3.2% 2019 2020 2021 2022 2023 9M 2024 2019 2020 2021 2022 2023 9M2024 2024 2019 2020
Slide 16: Total Deposits Reached ₱1.02T Boosted By CASA
Total Deposits Reached ₱1.02T Boosted By CASA 1,022 957 857 8.40% 672 CheckScan transaction Double-digit jump in Bills collection brought values up by 35%, CashCube business at PHP 46B increase in pushing transactions up 17% vs previous year transactions value YoY 536 538 PHP 47B 502 421 373 302 33.
Slide 17: Harnessed AI for digital growth and engagement
Harnessed AI for digital growth and engagement All-in-One Lifestyle App App for Lifehacks and PH’s 1st neighborhood & Digital Credit last mile ATM network AI-driven Credit & Risk Analytics for smarter business strategies: 1.2M Accounts 1.5M Accounts 8,426 Terminals Optimized loan approvals AI-po
Slide 18: RCBC customers reached 4.7M, up by 27% from 2023
RCBC customers reached 4.7M, up by 27% from 2023 Customer Count in 000s 4,674 1.26M new cards YTD, up 21% YoY; 3,689 credit card spend at Php 110 3,278 billion 3,098 2,785 1,957 146B billings for retail transactions, with 44% booked by super affluent clients 24.3B consumer loan bookings 2019 2020 20
Slide 19: Data & AI for smart and targeted actions
Data & AI for smart and targeted actions Cross-sell & CX 25 ML models based on product propensity for various customer segments Credit, Risk & Fraud 12 ML models for risk mitigation & fraud detection Forecasting & Network 5 ML models for Expected Credit Losses (ECL) & client network analysis Segment
Slide 20: RCBC's Sustainability Impacts at a Glance
RCBC’s Sustainability Impacts at a Glance Our framework is aligned with internationally recognized guidelines ₱126.7B Total Eligible Sustainable 3.7x Higher Sustainable Portfolio 65% Sustainability Bonds Portfolio vs. Coal Exposure Allocated to Green Projects Allocation Report consisting Eligible Su
Slide 21: When it comes to digital solutions, RCBC remains the bank to beat
“When it comes to digital solutions, RCBC remains the bank to beat.” Over 100 global and regional awards in 5 years!
Slide 22: Question & Answer
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Slide 23: For more information about RCBC, please contact Investor Relations
For more information about RCBC, please contact Investor_Relations@rcbc.com 26
Slide 24: FY 2024 Analysts' Briefing
FY 2024 Analysts’ Briefing
Rizal Commercial Banking — FY2024 Earnings Presentation on 6ix