Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2023 Earnings Presentation
29 slides from Rizal Commercial Banking's earnings presentation, March 2024
Slide 1: FY 2023 Investor Presentation
FY 2023 Investor Presentation March 2024
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: FY 2023 Performance
FY 2023 Performance Chrissy P. Alvarez Corporate Planning Head 3
Slide 4: Stable foundations despite headwinds
Stable foundations despite headwinds • Total assets jumped on the back of 15% increase in customer loans ₱1.2T ₱622B Asset Growth • More than 1 million cards-in-force for Credit Cards in total assets; 7.2% higher vs last year in loans; driven by consumer • Deposit rally driven mostly by CASA • Upwar
Slide 5: Efficient expansion with leaner organization
Efficient expansion with leaner organization Assets nearly doubled Profits on track to triple Headcount cut by 7% after 5 years after 5 years after 5 years 1,237 12.2 6,886 6,410 645 4.3 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 In PhP Billions, except
Slide 6: Consolidated key financial items
Consolidated key financial items FY 2023 FY 2022 Change % Change INCOME STATEMENT Gross Income 49,941 44,454 5,487 12.3% Net Interest Income 33,574 31,216 2,358 7.6% Fee Income 7,082 5,884 1,198 20.4% Operating Expenses 29,612 25,100 4,512 18.0% Impairment Losses 6,914 5,706 1,208 21.2% Net Income 1
Slide 7: Peak revenue boosted by NII, 8% increase vs. LY
Peak revenue boosted by NII, 8% increase vs. LY Historical Revenues In Php Billions, except % 50 ▲14% 44 CAGR 2018- 16.4 23 37 36 36 13.2 11.6 7.6 27 13.5 Other Income 6.1 Net Interest Income 31 34 29 26 20 22 2018 2019 2020 2021 2022 2023 7
Slide 8: Loan growth better than industry average
Loan growth better than industry average SMBC Capital infusion¹ Monthly Trend – Loan Portfolio 2019 to December 2023 14% YoY growth vs Dec 2022 Capital limits 6% 7% COVID-19 12% Industry growth pandemic as of Dec 2023 5% 14% Industry growth 12% 5% Industry growth 1% Industry growth 11% Industry grow
Slide 9: Loans up across all customer segments
Loans up across all customer segments Loan Portfolio1 Loan Mix In Php Billions, except % As of December 2023 622 +15% PL/SL 1% 543 Consumer SME Corp Auto 21% Housing 204 +29% 41% Consumer 158 Loans 33% 622B Credit 47% Card 125 +17% 37% 107 20% 276 292 +6% SME and Consumer segment grew by 17% and 29%
Slide 10: Beyond a million active credit cards to date
Beyond a million active credit cards to date Cards-in-Force 1,042 In 000s, 1,014 1,023 1,030 992 1,002 969 972 977 984 956 962 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 257K P139B P75B new cards YTD; bring in issuing billings; 45% in total balances; 48% card
Slide 11: Improving asset quality despite portfolio growth
Improving asset quality despite portfolio growth Gross NPL amount and ratio Gross NPL ratio per segment In Php Billions, except % As of December 2023 40.0 6.00% 5.10% Corporate 1.58% 35.0 4.58% 5.00% SME 3.55% 4.04% 3.91% 30.0 3.83% 3.75% 3.77% 4.00% 25.0 3.34% Consumer 5.38% 20.0 3.00% Credit Card
Slide 12: Healthy deposit growth of 12% vs LY
Healthy deposit growth of 12% vs LY Historical Deposits & CASA Cash management solutions to support CASA growth… In Php Billions, ▲19% Doubled CheckScan transaction values, CASA year-on-year up 110% receivables vs previous year growth 957 857 Sustained growth in CashCube business up 72% receivab
Slide 13: 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 14: Multiple digital platforms for different segments
Multiple digital platforms for different segments All-in-one hub RCBC’s financial PH’s 1st neighborhood & RCBC’s industry-leading inclusion super app last mile ATM network mobile banking app with DiskarTech will pivot into a bringing formal banking to the most comprehensive more loans-focused app wi
Slide 15: Accumulated 50 awards for 2023 alone
Accumulated 50 awards for 2023 alone • Philippines’ Domestic Cash Management Bank of the Year • Philippines’ Domestic Trade Finance of the Year • SME Bank of the Year – Philippines • Remittance Company of the Year • Credit Card Initiative of the Year • Marketing and Brand Initiative of the Year • ES
Slide 16: Frontrunner in Sustainability
Frontrunner in Sustainability 2011 2019 2020 2021 2022 X P49B RCBC’s first foray into RCBC establishes first sustainable First Philippine bank to RCBC’s P17.9B ASEAN Green & sustainability sustainability. The Env’tl and finance framework under the publicly announce our Sustainability Bond earned bon
Slide 17: Consolidated key financial indicators
Consolidated key financial indicators Dec-23 Dec-22 Change PROFITABILITY Return on Equity 9.5% 11.2% -1.7% Return on Assets 1.1% 1.2% -0.1% Net Interest Margin 3.4% 3.7% -0.3% COST EFFICIENCY Cost-to-Income Ratio 59.3% 56.5% 2.8% ASSET QUALITY Net NPL Ratio 1.6% 2.0% -0.4% NPL Coverage Ratio 89.6% 8
Slide 18: General Information
General Information Overview, Milestones & Ownership 18
Slide 19: Key milestones in the RCBC story
Key milestones in the RCBC story RCBC was incorporated and RCBC Savings Bank was IFC acquired an approximately RCBC completed a PHP15bn 1960 began operations in Rizal 1996 incorporated to provide 2011 7.2% stake in RCBC 2018 (USD280m) rights issue retail/consumer banking CVC Capital Partners acquire
Slide 20: Overview of RCBC
Overview of RCBC Rizal Commercial Banking Corporation (RCBC) is the 5th largest privately-owned bank in the Philippines, with over Php 1.2 trillion in total resources as of December 31, 2023. Main Business Lines Investment Information Particulars As of December 2023 Corporate Banking SME Banking Dig
Slide 21: Extensive and Diversified Business Platform
Extensive and Diversified Business Platform 99.96% 100% 100% 96.34% 99.99% 40% RCBC Capital RCBC Forex Brokers Rizal Microbank RCBC International RCBC Trust RCBC Leasing Corporation Corporation Microfinance Thrift Leasing Company Finance Corporation¹ Investment Bank Forex Broker Bank Hong Kong Finan
Slide 22: 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 wide
Slide 23: Appendix
RCBC Appendix
Slide 24: Consolidated income statement
Consolidated income statement FY 2023 FY 2022 Change % Change Interest Income 66,264 45,835 20,429 44.6% Interest Expense 32,690 14,619 18,071 123.6% Net Interest Income 33,574 31,216 2,358 7.6% Other Income 16,368 13,238 3,130 23.6% Trading Gains and Forex 427 1,530 (1,103) -72.1% Trust Fees 424 41
Slide 25: Consolidated balance sheet
Consolidated balance sheet FY 2023 FY 2022 Change % Change Cash/Due from BSP & Other Banks 186,498 180,578 5,920 3.28% Investment Securities 330,737 374,365 -43,628 -11.65% Loans (net of Interbank) 622,136 539,849 82,287 15.24% Other Assets 98,113 59,316 38,796 65.41% TOTAL ASSETS 1,237,484 1,154,10
Slide 26: Historical consolidated income statement
Historical consolidated income statement 2019 2020 2021 2022 FY 2023 Cash/Due from BSP/Due from Other 123 148 157 181 186 Banks Loans Arising From REPO 6 13 12 9 36 FVPL/FVTCI 60 45 56 122 94 Held to Maturity Investments 101 43 164 252 237 Interbank Loans and Receivables 19 43 31 28 28 Loans (net) 4
Slide 27: Historical consolidated balance sheet
Historical consolidated balance sheet 2019 2020 2021 2022 FY 2023 Net Interest Income 22.4 26.3 28.8 31.2 33.6 Other Income 13.5 11.6 7.6 13.2 16.4 Gross Income 35.9 37.9 36.4 44.5 49.9 Impairment Losses 7.4 9.4 6.0 5.7 6.9 Income before Operating Expenses 28.5 28.5 30.3 38.7 43.0 Operating Expenses
Slide 28: Historical key financial indicators
Historical key financial indicators 2019 2020 2021 2022 FY 2023 Return on Average Capital Funds 6.50% 5.50% 6.70% 11.24% 9.52% Return on Average Assets 0.80% 0.70% 0.80% 1.17% 1.06% Net Interest Margin 4.00% 4.30% 4.10% 3.70% 3.42% Cost-to-Income Ratio 60.80% 58.20% 61.90% 56.46% 59.29% CASA to Tota
Slide 29: For more information about RCBC, please contact Investor_Relations@rcbc.com
For more information about RCBC, please contact Investor_Relations@rcbc.com 29
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