Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — H1 2024 Earnings Presentation
21 slides from Rizal Commercial Banking's earnings presentation, August 2024
Slide 1: 1H 2024 Analysts' Briefing
1H 2024 Analysts’ Briefing August 2024
Slide 2: Macroeconomic Outlook
Macroeconomic Outlook Michael Ricafort Chief Economist 5
Slide 3: Market forecasts and catalysts for 2024
Market forecasts and catalysts for 2024 Philippine GDP Growth Estimates (2024-2025) Key Market Catalysts: Multilateral 2024 2025 Institutions Forecast Forecast Weaker chance for local policy rate cut IMF* 6.0% (same) 6.2% (same) 1 Reduced likelihood on the possible -0.25 BSP rate cut as early as Aug
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: 1H 2024 Performance
1H 2024 Performance Chrissy P. Alvarez Corporate Planning Head
Slide 6: Our 1H 2024 performance at a glance
Our 1H 2024 performance at a glance • Earning assets jumped 12%, driving NII up 29% Boosting margins • Loans surged 13%, led by 38% rise in consumer loans • Credit cards outpaced industry, growing 53% year on year 3.71% in NIM, up 42 bps • Fees up 33% versus last year Growth with quality • Consumer
Slide 7: Summary of consolidated financial results
Summary of consolidated financial results 1H2024 1H2023 Change % Change INCOME STATEMENT Gross Income 25,010 23,455 1,555 6.6% Net Interest Income 19,748 15,351 4,398 28.6% Fee Income 3,936 3,170 765 24.1% Operating Expenses 15,378 14,318 1,060 7.4% Impairment Losses 3,606 3,455 151 4.4% Net Income
Slide 8: Earnings up in first half driven by core business
Earnings up in first half driven by core business Gross Revenue Quarterly Net Interest Income ▲26% In Php Billions, except % In Php Billions, except % Y-on-Y ▲7% Net Interest Income Y-on-Y 10.2 Gross 25.0 8.9 9.3 9.6 23.5 Revenue 8.1 5.3 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 20.3 5.0 Net Interest Incom
Slide 9: Consumer segment leading portfolio growth
Consumer segment leading portfolio growth Loan Portfolio1 +13% YoY Loan Mix In Php Billions, except % As of June 30, 2024 654 622 PL/SL 1% 580 Consumer SME Corp Auto 543 22% 512 203 239 +38% Housing 39% Consumer 172 YoY 158 Loans 145 37% 44% 654B Credit 127 +7% Card 118 127 93 107 YoY 37% 19% 273 27
Slide 10: Maintained stable asset quality in all segments
Maintained stable asset quality in all segments Gross NPL amount and ratio Gross NPL ratio per segment In Php Billions, except % As of June 30, 2024 5.10% 4.58% Corporate 1.6% 3.83% 3.75% 4.04% 3.91% 3.77% 3.77% 3.34% 3.51% SME 4.4% Consumer 4.7% Credit Card 3.8% 28.6 24.8 24.1 24.2 24.4 26.1 22.8 2
Slide 11: Credit cards portfolio grew by 53% vs LY
Credit cards portfolio grew by 53% vs LY 1.13M P87B P89B Monthly personal loans now at over 1 BN cards in force; 15% higher in issuing billings; 42% in credit card receivables; New Personal Loans Volume than last year. higher compared to 53% higher than last In Php Millions 1140 year ago levels year
Slide 12: All-time high bookings for auto and housing
All-time high bookings for auto and housing Auto & Housing Portfolio and Gross NPL We continued to transform the housing & In Php Billions, except % auto loans business UKB Gross NPL Industry Ratio Affluent acquisition program Housing 7.2% 5.6% 8.50% with the help of data science 170 6.80% Auto 5.7%
Slide 13: Accelerate consumer loans and credit cards
Accelerate consumer loans and credit cards Consumer loan portfolio Q1 2024 RCBC consumer loan portfolio vs industry in PHP billions, % growth year-on-year in PHP billions, % growth year-on-year 144 Consumer 141 138 +26% 135 129 132 Volume % Growth 126 122 123 117 119 RCBC Industry RCBC Industry 115
Slide 14: Steady growth in deposits boosted by CASA
Steady growth in deposits boosted by CASA Historical Deposits & CASA Best-in-class cash management solutions will be a primary In Php Billions ▲8% driver of deposits Y-on-Y CASA 957 960 900 857 672 536 502 505 CheckScan transaction Double-digit jump in Bills collection brought 467 values doubled, pu
Slide 15: Multiple digital platforms for different segments
Multiple digital platforms for different segments P346M RCBC’s financial P340M direct revenue, up by deposits, 95% higher All-in-one hub 27% vs. YAGO inclusion super app vs. YAGO RCBC’s industry-leading DiskarTech will pivot into a mobile banking app with more loans-focused app the most comprehensiv
Slide 16: Data & AI for smart & targeted actions
Data & AI for smart & targeted actions Cross-sell & CX ML models based on product propensity for various customer segments Credit, Risk & Fraud ML models for risk mitigation & fraud detection Forecasting & Network ML models for Expected Credit Losses (ECL) & client network analysis Segmentation & An
Slide 17: 44 awards across various fields
44 awards across various fields Best Customer Digital Bank of Experience Bank the Year Philippines 2024 Philippines SME Bank of Best ATM Project the Year ATMGo Philippines Philippines Best Corporate Bank Philippines
Slide 18: Consolidated key financial indicators
Consolidated key financial indicators Jun-24 Jun-23 Change PROFITABILITY Return on Equity 5.7% 11.1% -5.4% Return on Assets 0.7% 1.1% -0.4% Net Interest Margin 3.7% 3.3% 0.4% COST EFFICIENCY Cost-to-Income Ratio 61.5% 61.0% 0.4% ASSET QUALITY Net NPL Ratio 2.0% 1.9% 0.1% NPL Coverage Ratio 81.3% 83.
Slide 19: Question & Answer
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Slide 20: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com
Slide 21: 1H 2024 Analysts' Briefing
1H 2024 Analysts’ Briefing August 2024
Rizal Commercial Banking — H1 2024 Earnings Presentation on 6ix