Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2021 Earnings Presentation
30 slides from Rizal Commercial Banking's earnings presentation, 2021
Slide 1: 1Q 2021
» | 1Q 2021
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: Contents
Contents Economic Overview Signs of economic recovery RCBC 1Q 2021 Review Sustained core business growth General Information Investment Information and Ownership Appendix Historical Financials 3
Slide 4: Economic Overview
Economic Overview
Slide 5: Philippines seen to recover in 2021-22
Philippines seen to recover in 2021-22 1Q 2021 recession resulted in -4.5% GDP contraction Philippine economy to go back to pre-COVID levels by 2022 (presidential election year); however, further lockdowns could delay this to 2023 But other industries may take more time to recover (e.g., . tourism,
Slide 6: Data shows recovery from severe GDP numbers
Data shows recovery from severe GDP numbers Philippine GDP growth continue to improve from worst levels 7.5% 6.6% 6.5% 6.4% 6.4% 7.2% 6.1% 6.4% 5.7% 5.4% 6.3% 6.7% -0.7% -4.2% -8.3% -11.6% -17.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 201
Slide 7: The Bank expects recovery in 2021
The Bank expects recovery in 2021 2022 2021 2020 Economic Indicators Forecast Forecast Actual GDP Growth 6.5%-7.0% 5.0%-6.0% (9.5%) USD/PhP (Year-End) 49.00-50.00 48.50-49.50 48.02 USD/PhP (Average) 49.25-50.25 48.00-49.00 49.62 Inflation (Average) 2.8%-3.3% 3.8%-4.3% 2.6% BSP Policy Rate 2.25%-2.50
Slide 8: RCBC 1Q 2021 Review
RCBC 1Q 2021 Review
Slide 9: The Bank sustained core business growth
The Bank sustained core business growth Core income expanded driven by 6th largest private universal bank in Raised PhP 17.9B, more than higher business volume and better terms of assets, loans, deposits and 5.9x oversubscribed, from the funding costs trust assets (from 7th in 2019) issuance of Fixe
Slide 10: RCBC's banking innovation gained more recognition
RCBC’s banking innovation gained more recognition 10
Slide 11: RCBC Mobile App made even more powerful
RCBC Mobile App made even more powerful RCBC continued to introduce industry-leading digital 57% solutions with the addition of features such as online UITF portfolio management. Increase in digital banking enrollment 619% QR Payments Wide selection of Billers Growth in InstaPay transaction volume C
Slide 12: Promoted inclusive digital finance
Promoted inclusive digital finance Through Diskartech and ATM Go, the Bank offers vital 14.9B financial and banking services needed by unbanked and underserved communities. Total amount disbursed via ATM Go during the pandemic 86% Financial Inclusion First “kapitbahay” Provinces covered (70/81) by A
Slide 13: RCBC is the 6th largest private bank in PH
RCBC is the 6th largest private bank in PH Assets Loans & Receivables 3,334 2,153 2,374 2,151 1,373 1,151 1,145 1,004 805 590 563 745 718 479 438 386 327 229 BDO MBT BPI PNB CHIB RCBC UBP SECB EW BDO BPI MBT PNB CHIB RCBC SECB UBP EW Deposits Trust Assets 2,633 1,631 1,739 1,673 849 848 583 817 563
Slide 14: Wide distribution network across the Philippines
Wide distribution network across the Philippines RCBC’s Branch Distribution by Region March 2021 CAR I: Ilocos 3 13 6 II: Cagayan Valley Region III: Central 36 IV-A: Calabarzon Luzon NCR: Metro Manila 172 70 6 V: Bicol Region IV-B: Mimaropa Branches and Extension Offices1 436 VIII: VI: 6 Eastern Wes
Slide 15: RCBC posted 2021 1Q Net Income of PhP 1.6B
RCBC posted 2021 1Q Net Income of PhP 1.6B 2021 1Q 2020 1Q Change % Change INCOME STATEMENT Net Interest Income 6,465 6,319 146 2.3% Non-Interest Income 1,848 3,674 (1,826) (49.7%) Operating Expenses 5,692 5,556 136 2.4% Impairment Losses 936 1,601 (666) (41.6%) Net Income 1,580 2,308 (728) (31.6%)
Slide 16: 2021 1Q Net Income up from previous quarter
2021 1Q Net Income up from previous quarter 2021 1Q 2020 4Q Change % Change INCOME STATEMENT Net Interest Income 6,465 6,622 (157) (2.4%) Non-Interest Income 1,848 1,937 (89) (4.6%) Operating Expenses 5,692 5,674 18 0.3% Impairment Losses 936 2,153 (1,217) (56.5%) Net Income 1,580 1,018 562 55.2% SE
Slide 17: Healthy core business growth drove profitability
Healthy core business growth drove profitability Return on equity remained stable as core Continued asset build-up and lower funding costs led to income expanded, tempered by lower trading NII expansion and FX gains 2% 7.0 6.7% 7.0% 6.5% 6.3% 5.8% 6,465 6.0 5.5% 6.0% 6,319 5.0 5.0% 2020 1Q 2021 1Q N
Slide 18: Diverse and stable fee-based revenue
Diverse and stable fee-based revenue Fee income started to pick up in the first Diversified sources of fees quarter 3% 0% 14% 5%3% 7% 6% 45% 14% 47% 8% 4.2 3.6 3.8 3.4 24% 24% 1.4 2020 1Q 2021 1Q Debit Cards (ATM Cards) Loans 2017 2018 2019 2020 2021 1Q Deposit and Branch Trust Investment Banking Ba
Slide 19: Solid loan growth outpaced industry average
Solid loan growth outpaced industry average Sustained loan portfolio1 expansion driven by Loan growth continued to outperform industry and peers proactive client engagement and streamlined processes 17% 14% 482 7% 452 141 -4% 138 3% 2020 1Q 2021 1Q Industry3 RCBC 81 74 9% Credit card business slight
Slide 20: Championed Sustainable Finance
Championed Sustainable Finance RCBC is the first Philippine universal bank to issue green and sustainable financing instruments under global standards ESG rating AA RCBC Sustainability Bond PhP 8B (USD 160M) RCBC Sustainable Loan Portfolio March 2021 RCBC Sustainability Bond Socioeconomic Sustainabl
Slide 21: General Information
General Information
Slide 22: Investment Information
Investment Information Equity Profile Dividend History Credit Rating1 Dividends Pay-out Particulars 1Q 2021 Year per share ratio Ticker RCB 2020 0.56 20.00% Long Term Deposit Baa2 Issued shares 1,935.63M 2019 0.45 17.02% Senior Unsecured Baa2 Stock Price 16.82 2018 0.62 20.02% Bank Financial Strengt
Slide 23: 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 ra
Slide 24: Ownership Structure
Ownership Structure Cathay Life Insurance, founded in 1962, is Taiwan‟s largest insurance company. It is owned by Cathay Financial Holding, 23.35% one of the largest financial holding companies in Taiwan. Pan Malayan Management and 5.57% Investment Corp. (PMMIC) & 52.69% IFC is the largest global de
Slide 25: Comprehensive and Diversified Business Platform
Comprehensive and Diversified Business Platform RCBC RCBC RCBC Capital Rizal Forex Brokers RCBC Leasing International Corporation Micro Bank Corporation Finance1 RCBC Securities RCBC Investment RCBC Rental Corporation Ltd RCBC Bankard Services Corporation [1] RCBC International Finance is the Bank‟s
Slide 26: Appendix
Appendix
Slide 27: Consolidated Income Statement
Consolidated Income Statement 2021 1Q 2020 1Q Change % Change Interest Income 8,432 9,531 (1,098) (11.5%) Interest Expense 1,967 3,212 (1,245) (38.7%) Net Interest Income 6,465 6,319 146 2.3% Other Income 1,848 3,674 (1,826) (49.7%) Trading Gains and Forex 11 2,432 (2,421) (99.5%) Trust Fees 91 70 2
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet 2021 1Q 2020 1Q Change % Change Cash/Due from BSP & Other Banks 149,614 88,790 60,824 68.5% Investment Securities 116,399 97,570 18,830 19.3% Loans (net of Interbank) 474,066 448,421 25,645 5.7% Other Assets 60,717 80,541 (19,824) (24.6%) TOTAL ASSETS 800,796 715,322 85,47
Slide 29: Consolidated Key Financial Indicators
Consolidated Key Financial Indicators 2021 1Q 2020 1Q Change PROFITABILITY Return on Equity 6.2% 11.1% (4.9%) Return on Assets 0.8% 1.3% (0.5%) Net Interest Margin 4.0% 4.2% (0.2%) COST EFFICIENCY Cost-to-Income Ratio 68.5% 55.6% 12.9% ASSET QUALITY Net NPL Ratio 3.2% 2.2% 1.0% NPL Coverage Ratio 70
Slide 30: Thank you!
—_\ Thank you! Investor Presentation 1Q 2021
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