Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q2 2021 Earnings Presentation
36 slides from Rizal Commercial Banking's earnings presentation, 2021
Slide 1: Investor Presentation 2Q 2021
Investor Presentation 2Q 2021 1
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 1 Economic Overview Signs of economic recovery 2 RCBC 2Q 2021 Review Sustained core business growth 3 General Information Investment Information and Ownership 4 Appendix Historical Financials 3
Slide 4: Economic Overview
1 Economic Overview 4
Slide 5: Philippines seen to recover in 2021-22
Philippines seen to recover in 2021-22 2Q 2021 GDP resulted to +11.8% growth largely due to low base effects Philippine economy to go back to pre-COVID levels by 2021 FORECAST 2022 (presidential election year); however, further GDP growth rate lockdowns could delay this to 2023 But other industries
Slide 6: Data shows recovery from severe GDP numbers in 2020
Data shows recovery from severe GDP numbers in 2020 Philippine GDP growth continue to improve from worst levels USD/PhP exchange rate PSEi still relatively better compared remained to be strong in 1H21 to the lows recorded in March 2020 6,901.91 50.68 Jun „21 Mar „20 5,321.23 48.80 Mar „20 Jun „21 6
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% 4.0%-5.0% (9.5%) USD/PhP (Year-End) 50.00-51.00 49.50-50.50 48.02 USD/PhP (Average) 50.25-51.25 49.00-50.00 49.62 Inflation (Average) 2.8%-3.3% 4.0%-4.3% 2.6% BSP Policy Rate 2.25%-2.50
Slide 8: RCBC 2Q 2021 Review
2 RCBC 2Q 2021 Review 8
Slide 9: Sustained profit growth as loans and deposits build-up performed better than industry
Sustained profit growth as loans and deposits build-up performed better than industry Key Financial Metrics (As of YTD June 2021) 16.9B 3.3B 484B 598B 104B 15.1% Revenues1 Net Income Loans2 Deposits Capital CAR +13% +7% +10% +20% +23% Profitability Growth Resilience Core income expanded driven by hi
Slide 10: RCBC is the 6th largest private bank in PH
RCBC is the 6th largest private bank in PH Assets Loans & Receivables 3,399 2,183 2,480 2,166 1,371 1,150 1,110 1,029 611 850 589 731 704 484 432 399 319 227 BDO MBT BPI PNB CHIB RCBC UBP SECB EW BDO BPI MBT PNB CHIB RCBC SECB UBP EW Deposits Trust Assets 1,688 2,682 1,818 1,685 878 601 828 827 598
Slide 11: RCBC posted 7% profit hike in 1H 2021
RCBC posted 7% profit hike in 1H 2021 *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Excluding trading and FX gains 11
Slide 12: 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 higher NII and FX gains 6% 7 6.7% 6.5% 6.5% 8% 5.8% 5.5% 13.6 6% 6 12.8 4% 5 1H 2020 1H 2021 2% Net Interest In
Slide 13: Stronger balance sheet with growth in risk assets and diversified funding portfolio
Stronger balance sheet with growth in risk assets and diversified funding portfolio Gross Loans Investment Securities 9% 3.4x 487 178 457 88 446 52 2Q 2020 4Q 2020 2Q 2021 2Q 2020 4Q 2020 2Q 2021 Deposits Capital 20% 23% 598 101 104 536 84 499 2Q 2020 4Q 2020 2Q 2021 2Q 2020 4Q 2020 2Q 2021 *Amounts
Slide 14: 9% customer loan expansion despite industry decline
9% customer loan expansion despite industry decline Sustained customer loan portfolio increase Loan growth continued to outperform industry and peers driven by proactive client engagement and 13% streamlined processes 10% 9% 487 446 29% 4% 30% 1H 2020 -2% 1H 2021 Industry2 RCBC 18% 17% 17% SME segme
Slide 15: 20% deposit jump outpaced industry average
20% deposit jump outpaced industry average Higher CASA and Time deposits fuelled Solid double-digit growth in deposits better than industry RCBC’s asset build-up strategy and peers 19% 20% 598 13% 8% 499 259 11% 1H 2020 1H 2021 233 Industry1 RCBC CASA deposits sustained growth momentum as the Bank e
Slide 16: Uptick in NPLs within expectations
Uptick in NPLs within expectations NPL ratio remained elevated driven by the Recognized additional provision for impairment losses in increase in consumer NPLs 1H 2021 even with the significant build-up of reserves in 2020 20.0 3.3% 3.5% 55% 18.0 2.9% 5.2 3.0% 16.0 2.3 14.0 2.2% 2.5% 1H 2020 1H 2021
Slide 17: Championed Sustainable Finance
Championed Sustainable Finance RCBC is the first Philippine universal bank to issue About 10% (PhP 55B) of the Bank’s loan portfolio is green and sustainable financing instruments under eligible under Sustainable financing global standards. RCBC Sustainable Loan Portfolio USD 1.1B June 2021 Socioeco
Slide 18: Wide distribution network across the Philippines
Wide distribution network across the Philippines RCBC’s Branch Distribution by Region June 2021 CAR I: Ilocos 3 13 6 II: Cagayan Valley Region III: Central 36 IV-A: Calabarzon Luzon NCR: Metro Manila 171 69 6 V: Bicol Region IV-B: Mimaropa Branches and Extension Offices1 434 VIII: VI: 6 Eastern West
Slide 19: RCBC Online Retail made even more powerful
RCBC Online Retail made even more powerful RCBC continued to introduce industry-leading digital 123% solutions with the addition of features such as online UITF portfolio management. Increase in digital banking transaction volume 167% QR Payments Wide selection of Billers Growth in InstaPay transact
Slide 20: Promoted inclusive digital finance
Promoted inclusive digital finance Through Diskartech and ATM Go, the Bank offers vital 388% financial and banking services needed by unbanked and underserved communities. Growth in Diskartech usage value in Q2 vs previous quarter 4.2M Financial Inclusion Super App Diskartech downloads First finance
Slide 21: Promoted inclusive digital finance
Promoted inclusive digital finance Through Diskartech and ATM Go, the Bank offers vital 16.1B financial and banking services needed by unbanked and underserved communities. Total peso amount disbursed via ATM Go during the pandemic 14% First “kapitbahay” Year-on-year growth in ATM Go transaction val
Slide 22: RCBC is the Best Digital Bank
RCBC is the BEST DIGITAL BANK IN THE PH FOR TWO YEARS IN A ROW 2021 International Business 2021 Business Tabloid, 2021 Alpha Southeast Asia Magazine A London-based publication Best Financial Institution Awards 2020 Alpha Southeast Asia 2020 Asiamoney Best Financial Institution Awards Best Bank Award
Slide 23: Also recognized for its strong franchise
ALSO RECOGNIZED FOR ITS STRONG FRANCHISE in Retail Banking, Corporate Banking, SME Banking, and more BEST RETAIL BANK BEST CASH MANAGEMENT Global Banking and Finance Review BANK Global Banking and Finance Review BEST CORPORATE BANK DOMESTIC RETAIL BANK OF Global Banking and Finance Review THE YEAR,
Slide 24: General Information
3 General Information 25
Slide 25: Investment Information
Investment Information Equity Profile Dividend History1 Credit Rating Dividends Pay-out Particulars 2Q 2021 Year per share ratio Ticker RCB 2021 0.49 18.51% Long Term Deposit Baa2 Issued shares 1,935.63M 2020 0.56 20.00% Senior Unsecured Baa2 Stock Price 22.60 2019 0.45 17.02% Bank Financial Strengt
Slide 26: 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 27: 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) & 52.68% IFC is the largest global de
Slide 28: 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 29: Appendix
4 Appendix 30
Slide 30: 2Q 2021 net income up 11% from previous quarter
2Q 2021 net income up 11% from previous quarter *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Excluding trading and FX gains 31
Slide 31: 2Q 2021 net income up 118% vs same quarter last year
2Q 2021 net income up 118% vs same quarter last year *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Excluding trading and FX gains 32
Slide 32: Consolidated Income Statement
Consolidated Income Statement 1H 2021 1H 2020 Change % Change Interest Income 17,662 19,074 (1,412) (7.4%) Interest Expense 4,079 6,261 (2,182) (34.9%) Net Interest Income 13,583 12,813 771 6.0% Other Income 3,534 8,045 (4,511) (56.1%) Trading Gains and Forex 202 5,886 (5,684) (96.6%) Trust Fees 188
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet 1H 2021 1H 2020 Change % Change Cash/Due from BSP & Other Banks 123,796 149,986 (26,190) (17.5%) Investment Securities 177,821 52,348 125,473 239.7% Loans (net of Interbank) 483,942 441,470 42,472 9.6% Other Assets 60,259 74,948 (14,689) (19.6%) TOTAL ASSETS 845,818 718,75
Slide 34: Consolidated Key Financial Indicators
Consolidated Key Financial Indicators 1H 2021 1H 2020 Change PROFITABILITY Return on Equity 6.5% 7.4% (0.9%) Return on Assets 0.8% 0.9% (0.0%) Net Interest Margin 4.1% 4.3% (0.2%) COST EFFICIENCY Cost-to-Income Ratio 65.2% 52.8% 12.4% ASSET QUALITY Net NPL Ratio 3.3% 2.2% 1.0% NPL Coverage Ratio 67.
Slide 35: For more information about RCBC, please contact
For more information about RCBC, please contact Investor_Relations@rcbc.com 36
Slide 36: Thank you!
—_\ Thank you! Investor Presentation 2Q 2021
Rizal Commercial Banking — Q2 2021 Earnings Presentation on 6ix