Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — 1H 2024 Earnings Presentation
27 slides from Rizal Commercial Banking's earnings presentation, August 2024
Slide 1: 1H 2024 Investor Presentation
1H 2024 Investor Presentation August 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: Our 1H 2024 performance at a glance
Our 1H 2024 performance at a glance • Earning assets jumped 12%, driving NII up 29% Boosting margins • Loans surged 13%, led by 38% rise in consumer loans • Credit cards outpaced industry, growing 53% year on year 3.71% in NIM, up 42 bps • Fees up 33% versus last year Growth with quality • Consumer
Slide 4: Summary of consolidated financial results
Summary of consolidated financial results 1H2024 1H2023 Change % Change INCOME STATEMENT Gross Income 25,010 23,455 1,555 6.6% Net Interest Income 19,748 15,351 4,398 28.6% Fee Income 3,936 3,170 765 24.1% Operating Expenses 15,378 14,318 1,060 7.4% Impairment Losses 3,606 3,455 151 4.4% Net Income
Slide 5: Earnings up in first half driven by core business
Earnings up in first half driven by core business Gross Revenue Quarterly Net Interest Income ▲26% In Php Billions, except % In Php Billions, except % Y-on-Y ▲7% Net Interest Income Y-on-Y 10.2 Gross 25.0 8.9 9.3 9.6 23.5 Revenue 8.1 5.3 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 20.3 5.0 Net Interest Incom
Slide 6: Consumer segment leading portfolio growth
Consumer segment leading portfolio growth Loan Portfolio1 +13% YoY Loan Mix In Php Billions, except % As of June 30, 2024 654 622 PL/SL 1% 580 Consumer SME Corp Auto 543 22% 512 203 239 +38% Housing 39% Consumer 172 YoY 158 Loans 145 37% 44% 654B Credit 127 +7% Card 118 127 93 107 YoY 37% 19% 273 27
Slide 7: 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 June 30, 2024 5.10% 4.58% Corporate 1.6% 3.83% 3.75% 4.04% 3.91% 3.77% 3.77% 3.34% 3.51% SME 4.4% Consumer 4.7% Credit Card 3.8% 28.6 24.8 24.1 24.2 24.4 26.1 22.8 2
Slide 8: Credit cards portfolio grew by 53% vs LY
Credit cards portfolio grew by 53% vs LY 1.13M P87B P89B Monthly personal loans now at over 1 BN cards in force; 15% higher in issuing billings; 42% in credit card receivables; New Personal Loans Volume than last year. higher compared to 53% higher than last In Php Millions 1140 year ago levels year
Slide 9: All-time high bookings for auto and housing
All-time high bookings for auto and housing Auto & Housing Portfolio and Gross NPL We continued to transform the housing & In Php Billions, except % auto loans business UKB Gross NPL Industry Ratio Affluent acquisition program Housing 7.2% 5.6% with the help of data science 6.80% Auto 5.7% 3.1% 6.23
Slide 10: Accelerate consumer loans and credit cards
Accelerate consumer loans and credit cards Consumer loan portfolio Q1 2024 RCBC consumer loan portfolio vs industry in PHP billions, % growth year-on-year in PHP billions, % growth year-on-year 144 Consumer 141 138 +26% 135 129 132 Volume % Growth 126 122 123 117 119 RCBC Industry RCBC Industry 115
Slide 11: Steady growth in deposits boosted by CASA
Steady growth in deposits boosted by CASA Historical Deposits & CASA Best-in-class cash management solutions will be a primary In Php Billions ▲8% driver of deposits Y-on-Y CASA 957 960 900 857 672 536 502 505 CheckScan transaction Double-digit jump in Bills collection brought 467 values doubled, pu
Slide 12: Multiple digital platforms for different segments
Multiple digital platforms for different segments P346M RCBC’s financial P340M direct revenue, up by deposits, 95% higher All-in-one hub 27% 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 comprehensiv
Slide 13: Data & AI for smart & targeted actions
Data & AI for smart & targeted actions Cross-sell & CX ML models based on product propensity for various customer segments Credit, Risk & Fraud ML models for risk mitigation & fraud detection Forecasting & Network ML models for Expected Credit Losses (ECL) & client network analysis Segmentation & An
Slide 14: 44 awards across various fields
44 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 15: Consolidated key financial indicators
Consolidated key financial indicators Jun-24 Jun-23 Change PROFITABILITY Return on Equity 5.7% 11.1% -5.4% Return on Assets 0.7% 1.1% -0.4% Net Interest Margin 3.7% 3.3% 0.4% COST EFFICIENCY Cost-to-Income Ratio 61.5% 61.0% 0.4% ASSET QUALITY Net NPL Ratio 2.0% 1.9% 0.1% NPL Coverage Ratio 81.3% 83.
Slide 16: General Information
General Information Overview, Milestones & Ownership 16
Slide 17: 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 18: 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 June 2024 Corporate Banking SME Banking Digital Ban
Slide 19: Extensive and Diversified Business Platform
Extensive and Diversified Business Platform 99.96% 100% 100% 96.34% 99.99% 40% RCBC Capital RCBC Forex Brokers Rizal Microbank RCBC International RCBC Trust RCBC Leasing Corporation Corporation Microfinance Thrift Leasing Company Finance Corporation¹ Investment Bank Forex Broker Bank Hong Kong Finan
Slide 20: 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 21: Appendix
RCBC Appendix
Slide 22: Consolidated income statement
Consolidated income statement 2Q2024 2Q2023 Change % Change Interest Income 38,184 30,712 7,471 24.3% Interest Expense 18,435 15,362 3,073 20.0% Net Interest Income 19,748 15,351 4,398 28.6% Other Income 5,262 8,104 (2,843) -35.1% Trading Gains and Forex (237) 449 (686) -152.7% Trust Fees - 217 (217
Slide 23: Consolidated balance sheet
Consolidated balance sheet 2Q2024 2Q2023 Change % Change Cash/Due from BSP & Other Banks 157,574 181,811 -24,237 -13.33% Investment Securities 373,782 339,318 34,464 10.16% Loans (net of Interbank) 654,504 576,772 77,732 13.48% Other Assets 75,038 76,367 -1,329 -1.74% TOTAL ASSETS 1,260,898 1,174,26
Slide 24: Historical income statement
Historical income statement 2019 2020 2021 2022 2023 2Q2024 Net Interest Income 22.4 26.3 28.8 31.2 33.6 19.7 Other Income 13.5 11.6 7.6 13.2 16.4 5.3 Gross Income 35.9 37.9 36.4 44.5 49.9 25.0 Impairment Losses 7.4 9.4 6.0 5.7 6.9 3.6 Income before Operating Expenses 28.5 28.5 30.3 38.7 43.1 21.4 O
Slide 25: Historical balance sheet
Historical balance sheet 2019 2020 2021 2022 2023 2Q2024 Cash/Due from BSP/Due from Other Banks 123 148 157 181 187 158 Loans Arising From REPO 6 13 12 9 36 27 FVPL/FVTCI 60 45 56 122 94 112 Held to Maturity Investments 101 43 164 252 237 262 Interbank Loans and Receivables 19 43 31 28 28 13 Loans (
Slide 26: Historical key financial ratios
Historical key financial ratios 2019 2020 2021 2022 2023 2Q2024 Return on Average Capital Funds 6.50% 5.50% 6.70% 11.24% 9.53% 5.73% Return on Average Assets 0.80% 0.70% 0.80% 1.17% 1.06% 0.72% Net Interest Margin 4.00% 4.30% 4.10% 3.70% 3.43% 3.71% Cost-to-Income Ratio 60.80% 58.20% 61.90% 56.46% 5
Slide 27: For more information about RCBC, please contact
For more information about RCBC, please contact Investor_Relations@rcbc.com 27
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