Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2024 Earnings Presentation
22 slides from Rizal Commercial Banking's earnings presentation, May 2024
Slide 1: 1Q 2024 Analysts' Briefing
1Q 2024 Analysts’ Briefing May 2024
Slide 2: Macroeconomic Outlook
Macroeconomic Outlook Michael Ricafort Chief Economist 4
Slide 3: Market forecasts and catalysts for 2024
Market forecasts and catalysts for 2024 Philippine GDP Growth Estimates (2024-2025) Key Market Catalysts: 2024 2025 Multilateral Institutions Possible local rate cuts in late 2024 Forecast Forecast IMF* 6.2% 6.2% 1 The BSP’s policy rate will be dependent on inflation data. ADB 6.0% (from 6.2%) 6.2%
Slide 4: Market forecasts and catalysts for 2024
Market forecasts and catalysts for 2024 Philippine Economic Outlook US & Philippine Policy Rate Outlook 2022 2023 2024 Economic Indicators Economic 3-Month 6-Month 1-Year Actual Actual Forecast Indicators Forecast Forecast Forecast GDP Growth 7.6% 5.5% 6.0%-6.5% BSP Policy Rate USD/PhP (Year-End) 55
Slide 5: Philippine GDP and inflation rates
Philippine GDP and inflation rates Philippine GDP growth for 1Q 2024: +5.7% year-on-year Inflation/CPI (April 2024): 3.8% year-on-year • PH GDP Growth is faster vs. 5.5% in 4Q2023 but slower • In April 2024, the fastest in 4 months or since vs 6.4% a year ago (1Q2023). December 2023 - still within t
Slide 6: 1Q 2024 Performance
1Q 2024 Performance Chrissy P. Alvarez Corporate Planning Head 8
Slide 7: Our financial performance at a glance
Our financial performance at a glance Accelerating core • Total assets jumped on the back of 12% increase in customer loans ₱2.2B ₱631B • Sustained recovery of NII amid loan growth net income, 32% in loans; driven by business increase in NII consumer • Service fees and commissions up by 44% vs. year
Slide 8: Summary of consolidated financial results
Summary of consolidated financial results 1Q2024 1Q2023 Change % Change INCOME STATEMENT Gross Income 12,237 12,993 (757) (5.8%) Net Interest Income 9,560 7,267 2,293 31.6% Fee Income 2,046 1,423 515 43.7% Operating Expenses 7,765 7,195 571 7.9% Impairment Losses 1,672 1,496 176 11.8% Net Income 2,2
Slide 9: Solid core income in the first quarter
Solid core income in the first quarter ▲32% Gross Revenue Net Interest Income Y-on-Y In Php Billions, except % In Php Billions, except % Net Interest Income 9.3 9.6 ▲12% 8.9 Y-on-Y 8.1 13 Gross 7.3 Revenue* 12 2.7 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 Net Interest Income 11 3.6 Fee Income Breakdown Adj
Slide 10: Consumer segment leading portfolio growth
Consumer segment leading portfolio growth Loan Portfolio1 +11% YoY Loan Mix In Php Billions, except % As of March 2024 622 632 PL/SL 1% 567 Consumer SME Corp Auto 543 21% 512 203 220 +35% Housing YoY 40% Consumer 163 Loans 158 145 35% 632B Credit 45% 127 +12% Card 112 126 37% 93 107 YoY 20% 273 276
Slide 11: Maintained healthy asset quality in all segments
Maintained healthy asset quality in all segments Gross NPL amount and ratio Gross NPL ratio per segment In Php Billions, except % As of March 2024 40.0 5.10% 4.58% Corporate 1.6% 5.00% 3.83% 3.75% 4.04% 3.91% 3.77% 35.0 3.34% 3.51% 4.00% 30.0 SME 3.8% 3.00% 25.0 2.00% Consumer 4.9% 20.0 1.00% Credit
Slide 12: High growth and yield on SME Loans
High growth and yield on SME Loans Historical SME Loans ▲12% 7.75% In Php Billions, Y-on-Y 127 126 Solid average yield; ▲14% better than budget CAGR 109 112 93 74 79 1.4% net NPL ratio for the segment; better than LY 128% total deposit to loan ratio for SME 2019 2020 2021 2022 2023 1Q2023 1Q2024 SME
Slide 13: Better-than-industry growth in credit cards
Better-than-industry growth in credit cards P75K P42B P81B Strong momentum in personal and salary loans receivables per card, in issuing billings; 42% in balances; 52% better than industry and higher compared to improvement from last higher than year ago year ago levels year’s level New Personal Loa
Slide 14: NPLs improved amid expansion in consumer loans
NPLs improved amid expansion in consumer loans Auto & Housing Portfolio Gross NPL ratio In Php Billions In % 140 8.00% ▲24% 235bps 135 7.50% Y-on-Y better than Consumer Loans 1Q2023 130 7.00% Portfolio 125 6.50% 120 6.00% 135.2 7.3% 6.8% 115 5.50% 126.0 6.2% 110 119.4 5.00% 112.7 5.4% 105 108.9 4.50
Slide 15: Steady growth in deposits boosted by CASA
Steady growth in deposits boosted by CASA Historical Deposits & CASA Cash management solutions to support CASA In Php Billions, ▲13% growth… Y-on-Y CASA 957 959 857 859 672 536 502 487 Fund Transfers & 457 421 432 Cash Cube CheckScan 423 Checks 373 302 on top of stronger corporate and SME banking 23
Slide 16: Multiple digital platforms for different segments
Multiple digital platforms for different segments PH’s 1st neighborhood RCBC’s financial & last mile ATM All-in-one hub inclusion super app network RCBC’s industry-leading DiskarTech will pivot into a Bringing formal banking mobile banking app with more loans-focused app to rural community the most
Slide 17: Leader in digital, AI and customer service
Leader in digital, AI and customer service • Relaunched RCBC Pulz & crossed 1M enrolled users • Launched RCBC Boz, an all-in-one SME app • Sustained growth in digital transaction volume of 33% • 51 AI models developed internally • 43 dashboards used by 2,200 RCBC Bankers • 164 senior officers taking
Slide 18: 23 recognitions across various fields
23 recognitions across various fields • Best SME Bank – Philippines • Best Bank for Sustainable Development – Philippines • Best Retail Bank – Philippines • Best Cash Management Bank – Philippines • Best Corporate Bank - Philippines • Digital Bank of the Year • Best ATM Project – ATMGo • Best SME Fi
Slide 19: Consolidated key financial indicators
Consolidated key financial indicators 1Q 2024 1Q 2023 Change PROFITABILITY Return on Equity 5.6% 13.3% -7.7% Return on Assets 0.7% 1.3% -0.6% Net Interest Margin 3.6% 3.1% 0.5% COST EFFICIENCY Cost-to-Income Ratio 63.5% 55.4% 8.1% ASSET QUALITY Net NPL Ratio 1.7% 2.0% -0.3% NPL Coverage Ratio 89.0%
Slide 20: Question & Answer
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Slide 21: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com 28
Slide 22: 1Q 2024 Analysts' Briefing
1Q 2024 Analysts’ Briefing May 2024 29
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