Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2021 Earnings Presentation
37 slides from Rizal Commercial Banking's earnings presentation, 2022
Slide 1: Investor Presentation FY 2021
Investor Presentation FY 2021 1
Slide 2: 2021 Highlights
2021 Highlights 7.1B 2.5X 959B Net income Investment Total assets up 41% securities growth up 24% 373B 54 15.2% All-time high Awards Capital adequacy CASA won ratio 2
Slide 3: 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 4: Agenda
Investor Presentation FY 2021 1 Economic Overview Signs of economic recovery 2 RCBC FY 2021 Review Sustained core business growth 3 General Information Investment information and ownership 4 Appendix Other financial information 5
Slide 5: FY 2021 Economic Overview
Investor Presentation FY 2021 1 Economic Overview 6
Slide 6: Philippines expected to return to pre-COVID levels in 2022
Philippines expected to return to pre-COVID levels in 2022 4Q 2021 GDP resulted to +7.7% growth, better than market expectations Philippine economy to go back to pre-COVID levels by 2022 (presidential election year); however, further lockdowns could delay 2022 FORECAST this to 2023 GDP growth rate B
Slide 7: Data shows improvement from severe GDP numbers in 2020
Data shows improvement from severe GDP numbers in 2020 Philippine GDP growth continued to pick-up from worst levels USD/PhP exchange rate PSEi relatively better compared remained strong to the lows recorded in March 2020 50.999 7,122.63 Dec „21 Dec‟ „21 50.68 Mar „20 5,321.23 Mar „20 8
Slide 8: The Bank expects recovery in 2022
The Bank expects recovery in 2022 2022 2021 2020 Economic Indicators Forecast Actual Actual GDP Growth 6.0%-6.5% 5.6% (9.5%) USD/PhP (Year-End) 52.00-53.00 50.999 48.02 USD/PhP (Average) 51.50-52.50 49.25 49.62 Inflation (Average) 3.5%-4.0% 3.9% 2.6% BSP Policy Rate 2.75%-3.00% 2.00% 2.00% PSEi 7,50
Slide 9: FY 2021 Overview
Investor Presentation FY 2021 2 FY 2021 Overview 10
Slide 10: RCBC's 2021 profit climbs 41% to record high 7.1B
RCBC’s 2021 profit climbs 41% to record high 7.1B 35.4B 7.1B 508B 672B 111B 15.2% Revenues1 Net Income Loans2 Deposits Capital CAR +13% +41% +13% +26% +10% Profitability Growth Resilience Core income expanded as the Bank built up 6th largest private universal bank in terms of Capital ratios remain w
Slide 11: RCBC's 2021 profit climbs 41% to record high 7.1B
RCBC’s 2021 profit climbs 41% to record high 7.1B *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Excluding trading and FX gains 12
Slide 12: 4Q 2021 net income up 72% vs same quarter last year
4Q 2021 net income up 72% 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 13
Slide 13: Upward momentum boosted by core income
Upward momentum boosted by core income Healthy return on equity sustained as core Higher volume of loan and treasury assets, coupled with income expanded, tempered by lower trading lower funding costs, propelled net interest income higher and FX gains 10% 8 8% 6.7% 6.5% 6.7% 5.8% 5.5% 28.8 6% 7 26.3
Slide 14: Stronger balance sheet with growth in risk assets and diversified funding portfolio
Stronger balance sheet with growth in risk assets and diversified funding portfolio Customer Loans Investment Securities 12% 513 513 2.5x 219 194 487 178 482 116 457 88 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Deposits Capital 26% 672 10% 110 111 627 598 563 10
Slide 15: 12% customer loan expansion higher than industry
12% customer loan expansion higher than industry The Bank built up loans and receivables Loan growth continued to outperform industry and peers mostly from the corporate and SME segments Loan Portfolio Loan Portfolio growth Breakdown by customer segment RCBC vs Industry 513 12% 457 12% 28% 11% 30% 5
Slide 16: Selective lending strategy through data analytics generated substantial gains
Selective lending strategy through data analytics generated substantial gains Loan expansion was focused on key segments, where pockets of opportunities were brought about through data science 20% 233% 51% Increase in loans from top Growth in new Rise in credit card issuances conglomerates SME accou
Slide 17: RCBC at the forefront of sustainable financing
RCBC at the forefront of sustainable financing We are the first Philippine universal bank to issue green and sustainable financing instruments under global standards PhP 67B USD 1.1B 3.06 GW Loans eligible under Raised under the Bank‟s Total renewable energy sustainable financing Sustainable Finance
Slide 18: Robust credit management stabilizes NPL ratio
Robust credit management stabilizes NPL ratio Elevated NPL ratio driven by the increase in consumer NPLs, but remained stable during the year on account of tightened credit management and improving economic conditions 30.0 3.3% 3.3% 3.3% 3.5% 3.2% 2.9% 3.0% 25.0 2.5% 20.0 2.0% 15.0 1.5% 10.0 16.8 18
Slide 19: 26% deposit rise stronger than industry average
26% deposit rise stronger than industry average Higher CASA and time deposits supported the Solid double-digit growth in deposits better than industry Bank’s asset build-up strategy and peers Deposits Deposit growth Breakdown by type RCBC vs Industry 672 26% 536 299 17% 28% 233 10% 9% 9% 8% 23% 373
Slide 20: Delivering customer-centric innovation
Delivering customer-centric innovation Innovative digital solutions for both retail and corporate clients drive customer acquisition and increase usage 259% 32% 77% More new retail accounts on- Growth in low-cost CASA Increase in cash processed boarded digitally deposits from cash via RCBC‟s CashCub
Slide 21: Digital transactions augment the diversified fee revenue
Digital transactions augment the diversified fee revenue Robust investment banking engagements and Sources of fees remain stable and diversified, with more retail and digital transactions allowed fee increasing share from digital transactions income to expand by 29% from last year Fee Income Fee Inc
Slide 22: RCBC Digital made even more powerful
RCBC Digital made even more powerful 75% Increase in RCBC Digital 70% Growth in InstaPay 191% Growth in PESONet transaction value transaction value transaction value RCBC continued to introduce industry-leading digital solutions with the addition of features such as QR payments and forex trading QR
Slide 23: Reimagining the branch banking experience
Reimagining the branch banking experience 281 Branches converted to Zero Forms to fill out1 50% Reduction in required client Branch of Today signatures RCBC Plaza Branch [1] Additional one (1) form to fill out & sign if client applies for Hexagon Club Membership (i.e., Hexagon enrollment Form) 24
Slide 24: Consolidated key financial indicators
Consolidated key financial indicators 2021 2020 Change PROFITABILITY Return on Equity 6.7% 5.5% 1.2% Return on Assets 0.8% 0.7% 0.2% Net Interest Margin 4.1% 4.3% (0.2%) COST EFFICIENCY Cost-to-Income Ratio 61.9% 58.2% 3.8% ASSET QUALITY Net NPL Ratio 3.3% 2.9% 0.4% NPL Coverage Ratio 63.7% 79.2% (1
Slide 25: RCBC is the Philippines' Best Digital Bank
RCBC is the Philippines’ BEST DIGITAL BANK recognized for its strong franchise across business lines 26
Slide 26: General Information
Investor Presentation FY 2021 3 General Information 27
Slide 27: Investment Information
Investment Information Equity Profile Dividend History1 Credit Rating Dividends Pay-out Particulars 2021 Year per share ratio Ticker RCB 2021 0.49 18.51% Long Term Deposit Baa3 Issued shares 2,037.48M 2020 0.56 20.00% Senior Unsecured Baa3 Stock Price 20.00 2019 0.45 17.02% Bank Financial Strength W
Slide 28: 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 29: Ownership Structure
Ownership Structure Cathay Life Insurance, founded in 1962, is Taiwan‟s largest insurance company. It is owned by Cathay Financial Holding, one of the largest financial holding companies in Taiwan. 22.18% Pan Malayan Management and IFC is the largest global development 5.29% 50.11% Investment Corp.
Slide 30: 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 31: Appendix
Investor Presentation FY 2021 4 Appendix 32
Slide 32: 4Q 2021 net income down 13% from previous quarter
4Q 2021 net income down 13% 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 33
Slide 33: Consolidated Income Statement
Consolidated Income Statement 2021 2020 Change % Change Interest Income 37,111 36,952 159 0.4% Interest Expense 8,280 10,671 (2,391) (22.4%) Net Interest Income 28,831 26,281 2,550 9.7% Other Income 7,563 11,632 (4,069) (35.0%) Trading Gains and Forex 1,044 6,658 (5,614) (84.3%) Trust Fees 392 323 6
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Dec 2021 Dec 2020 Change % Change Cash/Due from BSP & Other Banks 157,023 147,694 9,329 6.3% Investment Securities 218,917 88,064 130,853 148.6% Loans (net of Interbank) 507,739 448,603 59,136 13.2% Other Assets 75,454 87,745 (12,291) (14.0%) TOTAL ASSETS 959,133 772,106 1
Slide 35: Historical Consolidated Income Statement
Historical Consolidated Income Statement 2017 2018 2019 2020 2021 Net Interest Income 18.0 20.5 22.4 26.3 28.8 Other Income 7.1 6.0 13.5 11.6 7.6 Gross Income 25.1 26.5 35.9 37.9 36.4 Impairment Losses 2.2 1.9 7.4 9.4 6.0 Income before Operating Expenses 23.0 24.6 28.5 28.5 30.3 Operating Expenses 1
Slide 36: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet 2017 2018 2019 2020 2021 Cash/Due from BSP/Due from Other Banks 93 94 123 148 157 Loans Arising From REPO 10 10 6 13 12 FVPL/FVTCI 13 30 60 45 55 Held to Maturity Investments 60 89 101 43 164 Interbank Loans and Receivables 0 10 19 43 31 Loans (net of Interbank
Slide 37: Thank you.
Thank you. Investor Presentation FY 2021 38
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