Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Investor Presentation (September 2018)
26 slides from Rizal Commercial Banking's investor presentation, September 2018
Slide 1: Investor Presentation September 2018
INVESTOR PRESENTATION SEPTEMBER 2018 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: Table of Contents
Table of Contents 1 Introducing RCBC 2 Financial Overview 3 Recognition 4 Appendix – Financial Information 3
Slide 4: 1. Introducing RCBC
NN <) 1. Introducing RCBC
Slide 5: Overview of RCBC
OVERVIEW OF RCBC RCBC is a leading financial services provider in the Philippines Incorporated on 23 September 1960 as Rizal Development Bank and received approval to operate as a commercial bank in December 1962. RCBC is currently the 8th largest private domestic bank in the Philippines by assets
Slide 6: Equity Profile and Dividends History
EQUITY PROFILE AND DIVIDENDS HISTORY Equity Profile Dividends History Dividends Particulars End-September 2018 Year Pay-out ratio per share Ticker RCB 2018 0.62 20.00% Issued shares 1,935.63 mn 2017 0.55 20.00% Stock Price P25.30 2016 0.72 20.00% Market Cap P48.971bn (USD0.91bn) 2015 0.60 19.29% BV
Slide 7: Credit Ratings
Credit Ratings Moodys [1] Fitch [2] Long Term Deposit Baa2 - Long Term IDR - BB+ Senior Unsecured Baa2 BB+ Bank Financial baa3 bb+ Strength [3] Outlook Stable Stable *Investment Grade rating by Moody's on July 6, 2018 [1] As of July 6, 2018 [2] As of November 22, 2018 [3] Reported as Baseline Credit
Slide 8: YGC Structure
YGC Structure • RCBC is a member of the Yuchengco Group of Companies (YGC), 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 range of financial products and services. Pan Malayan Management and Investm
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 RCBC Savings Bank Corporation Corporation Microfinance Leasing Hong Kong Financing Thrift Bank Foreign Exchange Investment Bank Thrift Bank Company Company Broker RCBC Secu
Slide 10: Key Milestones in the RCBC Story
Key Milestones in the RCBC Story 1960-1970s 1980-1990s 2000s 2010s September 1960 1985 2000 2011 RCBC was Continental Illinois Bank Acquired 67% stake in Bankard Formed alliances with IFC and CVC Capital Partners incorporated and sold its shareholding to UFJ Inc. Formed Bancassurance partn
Slide 11: Industry Ranking
Industry Ranking • RCBC has about 4% market share in Total Assets, Loans and Deposits among Universal / Commercial banks in the Philippines as of September 30, 2018. Total Assets (in Blns) Total Deposits (in Blns) 2,346 3,500 2,922 2,500 3,000 2,000 2,500 2,127 1,961 1,542 1,542 2,000 1,500 1,500 91
Slide 12: The New RCBC
The New RCBC • The new look and philosophy of RCBC is anchored on the mission to maintain and even strengthen the bank’s relevance among Filipino depositors. • RCBC strives to refresh and reenergize its services to serve loyal customers who have stood with the bank for the past 57 years. • Our new l
Slide 13: 2. Financial Overview
NN <) 2. Financial Overview 13
Slide 14: Income Statement 9M 2018 vs. same period last year
Income Statement RCBC (Consolidated) 9M 2018 vs. same period last year (Amount in millions) 9M 2018 9M 2017 Peso Income Statement - Year to Date % Change (Unaudited) (Audited) Change Interest Income 21,950 18,084 3,866 21.4% Interest Expense 7,262 4,940 2,322 47.0% Net Interest Income 14,688 13,144
Slide 15: Balance Sheet
Balance Sheet RCBC (Consolidated) (Amount in millions) As of Sep. As of Sep. Peso Balance Sheet 30, 2018 30, 2017 % Change Change (Unaudited) (Unaudited) Cash/Due from BSP & Other Banks 14,389 11,729 2,660 22.7% Investment Securities 97,669 68,091 29,578 43.4% Loans- net (including interbank) 387,96
Slide 16: Loans: Growth by Segment
Loans: Growth by Segment • Successfully executed SME & consumer loan growth strategy 3Q 2018 3Q 2017 Growth Mix Mix Corporate 59% 61% 10% SME 14% 12% 32% Consumer 27% 27% 17% Consumer- 12% 12% 14% Mortgage Total 100% 100% 14% 16
Slide 17: Loans: Sustainable Portfolio Quality
STRICTLY CONFIDENTIAL Loans: Sustainable Portfolio Quality RCBC has one of the lowest NPL ratios in the sector and prudent loan loss coverage 120% 1.4% 1.22% 100% 1.2% 1.07% 1.25% 1.0% 80% 0.90% 0.98% 0.8% 60% 0.79% 0.6% 94.05% 101.65% 93.78% 82.51% 96.94% 40% 87.59% 0.4% 20% 0.2% 0% 0.0% 2013 2014
Slide 18: Self Funding
STRICTLY CONFIDENTIAL Self Funding Increase proportion of CA/SA deposits to lower overall funding costs 450 Customer deposits (PHP bn) 410 400 CA/SA to Total Deposits (%) 388 353 350 342 316 178 300 297 171 119 148 250 120 112 65% 56% 57% 200 58% 62% 150 62% 223 217 232 100 185 196 205 50 0 2013 201
Slide 19: Establish Broad Distribution Channels
Establish Broad Distribution Channels Branch and ATM Network 2,000 1,562 1,593 1,488 1,500 1,342 1,150 1,202 1,000 481 508 509 500 435 449 456 0 2013 2014 2015 2016 2017 9M2018 Branches ATMS ATM to Branch 2.64:1 3.14:1 ratio 19
Slide 20: 3. Recognition
3. Recognition 20
Slide 21: World Finance and AsiaMoney Awards
World Finance — Best Banking Group in the Philippines –2013, 2014, 2017 — Best Commercial Bank in the Philippines –2017 AsiaMoney — Best Bank for SMEs in the Philippines - 2018 — Best Domestic Private Bank in the Philippines - 2013, 2014 — Best for Credit Derivatives - 2016 — Best Market Coverage –2
Slide 22: Other Awards in Communications and Branding
—RCBC received several awards, among them six Quill Awards from Other Awards in the the International Association of Business Communicators Area of Communications and —The Gold Anvil for the brand refresh campaign Branding —Recognition as part of the top 10 brand with the Most Improved Brands Health
Slide 23: 4. Appendix – Financial Information
4. Appendix – Financial Information 23
Slide 24: Consolidated Income Statement
Consolidated Income Statement (PhP bn) 2013 2014 2015 2016 2017 9M2018 Net Interest Income 13.31 14.97 15.58 15.71 18.02 14.69 Total Non Interest Income 9.81 7.10 6.66 7.11 7.10 4.73 Gross Income 23.12 22.07 22.23 22.82 25.12 19.41 Provision for Loan Losses 2.05 2.51 2.35 1.77 2.16 1.31 Income befor
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet (PhP bn) 2013 2014 2015 2016 2017 9M2018 Cash/Due from BSP/Due 70 76 84 107 93 94 from Other Banks Loans Arising From REPO 0 0 0 8 10 12 FVPL/FVTCI 3 21 9 24 13 15 Held to Maturity Investments 89 80 102 52 60 83 Interbank Loans Receivables 21 0.3 0.0 0.5 0.0 8.5 Loans-net
Slide 26: Consolidated Key Ratios
Consolidated Key Ratios 2013 2014 2015 2016 2017 9M2018 Return on Average Capital 12.2% 9.2% 9.3% 6.4% 6.7% 5.9% Funds Return on Average Assets 1.4% 1.0% 1.1% 0.8% 0.8% 0.7% Net Interest Margin 4.2% 4.3% 4.2% 4.1% 4.3% 3.9% Cost-to-Income Ratio 61.2% 64.5% 67.7% 76.1% 70.9% 73.9% CASA to Total Depos
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