Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2022 Earnings Presentation
24 slides from Rizal Commercial Banking's earnings presentation, Mar 3, 2023
Slide 1: RCBC FY 2022 Analysts' Briefing
RCBC FY 2022 ANALYSTS’ BRIEFING 03 Mar 2023 4:00 PM 1
Slide 2: Agenda
Agenda 01 Economic Outlook Michael L. Ricafort, RCBC Chief Economist 02 RCBC FY 2022 Performance Chrissy P. Alvarez, RCBC Corporate Planning Head & CIO 03 Q&A
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: Economic Outlook
Economic Outlook Mr. Michael L. Ricafort RCBC Chief Economist 4
Slide 5: Better-than-expected economic upturn despite higher inflation
Better-than-expected economic upturn despite higher inflation PH GDP now higher than +7.6% Inflation was elevated globally in 2022 as pre-pandemic levels GDP growth Russia-Ukraine war dealt a major shock (2022)[1] 9% 22.02 8% 19.52 19.41 18.27 17.95 7% 6% 5% 4% 3% 2% 1% 0% -1% '02 '03 '04 '05 '06 '0
Slide 6: Economic growth to moderate as base effects dissipate; interest rates to still rise
Economic growth to moderate as base effects dissipate; interest rates to still rise and plateau until US CPI eases Economic 2023 2022 2021 Key Market Catalysts for 2023: Indicators Forecast Actual Actual Complicated economic reopening in GDP Growth 5.5%-6.5% 7.6% 5.7% 1 China New COVID cases could s
Slide 7: RCBC FY 2022 Performance
RCBC FY 2022 Performance Ms. Chrissy P. Alvarez RCBC Corporate Planning Head and Chief Information Officer 7
Slide 8: RCBC accelerates solid momentum
RCBC accelerates solid momentum +20% Asset growth strategy paid off, making RCBC PH’s 5th largest privately- owned bank with P1.2T assets on the back of better-than-industry in total assets growth in earning assets, deposits and solid NIM. +27% Deposits shattered records in 2022 reaching P857B outpa
Slide 9: RCBC is PH's 5th largest privately-owned bank
RCBC is PH’s 5th largest privately-owned bank Incorporated in 1960, RCBC is a leading financial services provider n the Philippines with a market capitalization of PhP48.3B as of end-December 2022. RCBC was a repeat winner of industry accolades in Digital and have received recognition as Best Retail
Slide 10: On track to become the undisputed challenger bank
On track to become the undisputed challenger bank Total assets In PhP billions 4,014 2,922 Up from rank #8 in 2,625 5th 2018 with 16% CAGR. 1,424 1,191 1,179 1,086 878 421 BDO MBTC BPI CBC RCBC PNB UBP SECB EWB Based on consolidated published balance sheets
Slide 11: Profits rose by 71% in 2022 to over P12B
Profits rose by 71% in 2022 to over P12B FY 2022 FY 2021 Change % Change INCOME STATEMENT 1 Gross Income 44,454 36,394 8,060 22.1% Net Interest Income 31,216 28,831 2,385 8.3% Fee Income 5,884 4,941 943 19.1% Operating Expenses 25,100 22,535 2,565 11.4% Impairment Losses 5,706 6,048 (342) (5.7%) Net
Slide 12: Earning assets drove 90% of increase in total assets
Earning assets drove 90% of increase in total assets Asset expansion supported by higher-than- On the back of record-high deposits which climbed 27% industry growth in interest-earning assets from previous year level (versus 12% industry benchmark) 857 672 457 536 423 YoY growth of 23% (vs industry’
Slide 13: Double-digit growth in SME and credit card segments
Double-digit growth in SME and credit card segments Loan Portfolio1 Loan Mix In Php Billions, except % As of December 2022 PL/SL 543 +6% Consumer SME Corp 1% 513 Auto 24% Housing 43% Consumer 158 +9% 29% Loans 145 Credit 93 107 +15% 51% 543B Card 32% 20% 273 276 +1% Credit card led the expansion of
Slide 14: SME accounted for 46% of increase in total loans
SME accounted for 46% of increase in total loans Historical SME Loans In Php Billions 15% Spurred by key areas outside Metro Manila YoY SME loan growth 17% 107 4-yr CAGR Sustained growth even 79% Supporting CASA push and protecting margins during the pandemic CASA to loans ratio 34 Expanding our pre
Slide 15: 2022 has been a breakout year for credit cards
2022 has been a breakout year for credit cards Faster-than-industry growth in billings driven by data & digital strategies Unli Installment Convert straight purchases to Monthly Billings installment through the app; In Php Billions 11.3 P10B, +54% YoY UnliPay 61% Use available limit to pay any bank
Slide 16: Marked improvement in NPL from year-ago level
Marked improvement in NPL from year-ago level Net NPL Amount and Ratio Net NPL ratio per Segment In Php Billions, except % As of December 2022 25.0 3.3% 3.5% Corporate 0.4% 3.2% 3.0% 20.0 2.7% SME 2.0% 2.5% 2.1% 15.0 2.0% 2.0% Consumer 6.4% 1.5% 10.0 18.3 17.8 14.8 1.0% Credit Card 0.8% 12.8 11.4 5.
Slide 17: Record-high deposits outpaced industry
Record-high deposits outpaced industry Deposit breakdown CASA deposits In PhP Billions In PhP Billions 421 19% +27% 3-yr CAGR 857 373 versus 12% industry benchmark versus 13% industry CAGR 302 for the same period 672 +46% 250 436 versus 29% industry benchmark 299 +13% 373 421 versus 7% industry benc
Slide 18: Retail and insurance pushed fee income up nearly 20%
Retail and insurance pushed fee income up nearly 20% Fee income Fee income breakdown In Php Millions, except % In % Debit & Credit Cards Bancassurance Digital +19% YoY Loans Deposit & Branch Trust Securities & Brokerage 5,884 4,941 6% 64% 4,198 7% of increase in fee income was 3,829 9% attributable
Slide 19: Frontrunner in sustainable finance in PH
Frontrunner in sustainable finance in PH We are the first Philippine universal bank to issue sustainable financing instruments under ASEAN bond standards RCBC is also the first local bank to participate in PCAF, an initiative among financial institutions worldwide to harmonize assessments and disclo
Slide 20: Digital solution supporting contextual banking thrust
Digital solution supporting contextual banking thrust +44% +22% +31% YoY growth in gross YoY growth in gross YoY growth in gross transaction value transaction value transaction value >1000 Gross transaction value Gross transaction value In Billions In Billions 14.2 168 11.7 ATM Go merchants nationwi
Slide 21: Revving up RCBC's growth engine
Revving up RCBC’s growth engine SMBC is one of the largest banks globally with presence in SMBC’s Credit Ratings* approximately 40 countries and regions. S&P A Together with its group companies, the financial giant is engaged in retail banking, corporate banking, and investment banking, Moody’s A1 l
Slide 22: Consolidated key financial indicators
Consolidated key financial indicators Dec 2022 Dec 2021 Change PROFITABILITY Return on Equity 11.2% 6.7% 4.5% Return on Assets 1.2% 0.8% 0.3% Net Interest Margin 3.7% 4.1% -0.4% COST EFFICIENCY Cost-to-Income Ratio 56.5% 61.9% -5.5% ASSET QUALITY Net NPL Ratio 2.0% 3.3% -1.3% NPL Coverage Ratio 84.4
Slide 23: For more information about RCBC, please contact Investor Relations
For more information about RCBC, please contact Investor_Relations@rcbc.com 23
Slide 24: RCBC FY 2022 Analysts' Briefing
RCBC FY 2022 ANALYSTS’ BRIEFING 24
Rizal Commercial Banking Corporation (RCBC) — FY2022 Earnings Presentation on 6ix