Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2019 Earnings Presentation
27 slides from Rizal Commercial Banking's earnings presentation, 2019
Slide 1: RCBC Investor Presentation FY 2019
RCBC Investor Presentation FY 2019
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: Table of Contents
Table of Contents Introducing RCBC Financial Overview Strategic Initiatives Recognition Appendix - Financial Information
Slide 4: Introducing RCBC
Investor Presentation Full-Year 2019 1. Introducing RCBC
Slide 5: RCBC is a leading financial services provider in the Philippines
RCBC is a leading financial services provider in the Philippines Incorporated in 1960, RCBC is the 7th largest private domestic bank in the Philippines by assets, with a market capitalization of Php44.52bn (USD0.86bn)1 and share price of Php23.002 . Member of the Yuchengco Group of Companies (YGC).
Slide 6: Investment Information
Investment Information • RCBC’s Stock Rights Offering (SRO) of 535,710,378 million shares were listed in the Philippine Stock Exchange (PSE) on July 16, 2018 and the gross proceeds amounting to PHP14,999,890,584 were booked on the same date. • The shares were offered at PHP28.00 with entitlement rat
Slide 7: 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 wid
Slide 8: Ownership Structure
Ownership Structure Cathay Life Insurance Pan Malayan Management and 23.35% Investment Corp. (PMMIC) & Affiliates of the Yuchengco Group of Companies (YGC) 53.37% International Finance Corporation 5.58% Public Float 17.70% 8
Slide 9: Comprehensive and Diversified Business Platform
Comprehensive and Diversified Business Platform RCBC Forex Brokers RCBC Capital Rizal Micro Bank RCBC Leasing RCBC Intl Finance Corporation Corporation Microfinance Thrift Leasing Hong Kong Financing Foreign Exchange Investment Bank Bank Company Company Broker RCBC Rental RCBC Investment Ltd RCBC Se
Slide 10: Key Milestones
Key Milestones 1960-1970s 1980-1990s 2000s 2010s 2011 September 1960 1985 2000 Formed alliances with IFC and CVC Capital Partners RCBC was Continental Illinois Bank Acquired 67% stake in Formed Bancassurance partnership with Sunlife GREPA incorporated and sold its shareholding to UFJ Banka
Slide 11: RCBC has a broad, nationwide distribution network
RCBC has a broad, nationwide distribution network Branch distribution by Region December 2019 CAR I: Ilocos 6 16 8 II: Cagayan Valley Region III: Central 41 IV-A: Calabarzon Luzon NCR: Metro Manila 200 83 7 V: Bicol Region IV-B: Mimaropa VIII: VI: 6 Eastern Western Visayas 7 Visayas 25 31 VII: Centr
Slide 12: Financial Overview
Investor Presentation Full-Year 2019 2. Financial Overview
Slide 13: Income Statement
Income Statement RCBC (Consolidated) 2019 vs. 2018 Amount in millions Php 2019 2018 Peso Income Statement - Year to Date % Change (Audited) (Audited) Change Interest Income 37,578 30,933 6,645 21.5% Interest Expense 15,210 10,444 4,766 45.6% Net Interest Income 22,368 20,489 1,879 9.2% Other Income
Slide 14: Balance Sheet
Balance Sheet RCBC (Consolidated) 2019 vs. 2018 Amount in millions Php Peso Balance Sheet 2019 2018 % Change Change Cash/Due from BSP & Other Banks 122,980 94,229 28,751 30.5% Investment Securities 160,719 118,450 42,269 35.7% Loans- net (excluding interbank) 430,416 378,746 51,670 13.6% Other asset
Slide 15: Strategic Initiatives
Investor Presentation Full-Year 2019
Slide 16: High proportion of low-cost deposits, to be boosted by cash management initiatives
High proportion of low-cost deposits, to be boosted by cash management initiatives • The Bank has a diversified depositor base, Total Deposits In Php Billion from both the retail and corporate segments. 457 423 • Moving forward, the bank will continue to 388 focus on building its customer base by 34
Slide 17: Well-diversified loan portfolio, driven by the consumer segment
Well-diversified loan portfolio, driven by the consumer segment Total Loans In Php Billion • The Bank will continue to forge strategic partnerships 434 with major car dealerships and real estate developers 390 1 353 1 30 to support consumer loan growth 297 305 1 22 0 1 16 101 • RCBC leverages on its
Slide 18: Diverse and Stable fee-based revenue
Diverse and Stable fee-based revenue Fee Income In Php Million Fee income growth strategy 4,175 Retail Banking: Build a large mass affluent client base, 3,759 3,490 3,417 3,601 including prepaid (MyWallet) and payroll customers, and increase no. of transactions such as payment (i.e. bills) and purch
Slide 19: RCBC is commencing its Digital Transformation
RCBC is commencing its Digital Transformation Transformation centered on creating delightful customer experiences Ongoing Initiatives Enhancement and relaunch of the Bank’s digital channels (mobile and online banking, website) Dedicated and world-class Data Science team, enabling RCBC to leverage on
Slide 20: The Bank is a leader in Green and Sustainable Finance
The Bank is a leader in Green and Sustainable Finance • RCBC is the first Philippine universal bank to issue ESG rating green and sustainable financing instruments under ESG rating A global standards A RCBC Sustainable Loan Portfolio RCBC Sustainability Bond 31 December 2019 Php8B ($160M) Sustainabl
Slide 21: Recognition
Investor Presentation Full-Year 2019 4. Recognition
Slide 22: Recognized by multiple award-giving bodies
Recognized by multiple award-giving bodies Best Commercial Bank in the Best SME Bank - 2018 Best Card Offering-Philippines - Syndicated Loan of the Year – Philippines - 2017 Best for Credit Derivatives - 2016 2018 RCBC Capital Best Banking Group in the Best Market Coverage –2016 Philippines - 2017 B
Slide 23: Appendix
Investor Presentation Full-Year 2019 5. Appendix
Slide 24: Consolidated Income Statement
Consolidated Income Statement Historical – in Php Bn 2013 2014 2015 2016 2017 2018 2019 Net Interest Income 13.31 14.97 15.58 15.71 18.02 20.49 22.37 Total Non Interest Income 9.81 7.10 6.66 7.11 7.10 6.01 13.49 Gross Income 23.12 22.07 22.23 22.82 25.12 26.50 35.86 Provision for Loan Losses 2.05 2.
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Historical – in Php Bn 2013 2014 2015 2016 2017 2018 2019 Cash/Due from BSP/Due 70 76 84 107 93 94 123 from Other Banks Loans Arising From REPO 0 0 0 8 10 10 6 FVPL/FVTCI 3 21 9 24 13 30 60 Held to Maturity Investments 89 80 102 52 60 89 101 Interbank Loans Receivables 21
Slide 26: Key Ratios
Key Ratios Historical 2013 2014 2015 2016 2017 2018 2019 Return on Average Capital 12.2% 9.2% 9.3% 6.4% 6.7% 5.8% 6.5% Funds Return on Average Assets 1.4% 1.0% 1.1% 0.8% 0.8% 0.7% 0.8% Net Interest Margin 4.2% 4.3% 4.2% 4.1% 4.3% 4.0% 4.0% Cost-to-Income Ratio 61.2% 64.5% 67.7% 76.1% 70.9% 73.2% 60.
Slide 27: Thank you
RCBC Thank you.
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