Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Investor Presentation (June 2018)
25 slides from Rizal Commercial Banking's investor presentation, June 2018
Slide 1: Investor Presentation June 2018
INVESTOR PRESENTATION JUNE 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 • Regular cash dividends paid annually Equity Profile Dividends History Dividends Particulars End-June 2018 Year Pay-out ratio per share Ticker RCB 2018 0.62 20.00% Issued shares 1,399.92 mn 2017 0.55 20.00% Stock Price P28.00 2016 0.72 20.00% Market Cap P39.198b
Slide 7: Credit Ratings
Credit Ratings (Investment Grade rating by Moody’s on November 23, 2017) Moodys [1] Fitch [2] Long Term Deposit Baa2 / P-2 - Long Term IDR - BB+ Senior Unsecured Baa2 BB+ Bank Financial - - Strength Outlook Stable Stable [1] As of November 23, 2017 [2] As of December 13, 2017 7
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 June 30, 2018. Total Assets (in Blns) Total Deposits (in Blns) 2,846 2,323 3,000 2,500 2,500 2,190 1,895 2,000 2,000 1,560 1,537 1,500 1,500 872 766 721 1
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
Income Statement RCBC (Consolidated) As of Jun. 30, 2018 vs. same period last year (Amount in millions) As of Jun. As of Jun. Peso Income Statement - Year to Date 30, 2018 30, 2017 % Change Change (Unaudited) (Audited) Interest Income 14,282 11,907 2,376 20.0% Interest Expense 4,607 3,281 1,326 40.4
Slide 15: Balance Sheet
Balance Sheet RCBC (Consolidated) (Amount in millions) As of Jun. As of Jun. Peso Balance Sheet 30, 2018 30, 2017 % Change Change (Unaudited) (Unaudited) Cash/Due from BSP & Other Banks 13,926 12,437 1,488 12.0% Investment Securities 95,040 72,084 22,956 31.8% Loans- net (including interbank) 372,09
Slide 16: Loans: Growth by Segment
Loans: Growth by Segment • Successfully executed SME & consumer loan growth strategy 1H 2018 1H 2017 Growth Mix Mix Corporate 59% 61% 11% SME 14% 12% 36% Consumer 27% 27% 17% Consumer- 12% 12% 14% Mortgage Total 100% 100% 16% 16
Slide 17: Loans: Sustainable Portfolio Quality
Loans: Sustainable Portfolio Quality RCBC has one of the lowest NPL ratios in the sector and prudent loan loss coverage 120% 1.4% 1.18% 100% 1.2% 1.07% 1.25% 1.0% 80% 0.90% 0.98% 0.8% 60% 0.79% 0.6% 94.05% 93.78% 82.51% 100.05% 40% 87.59% 101.65% 0.4% 20% 0.2% 0% 0.0% 2013 2014 2015 2016 2017 1H18 N
Slide 18: Self Funding
Self Funding Increase proportion of CA/SA deposits to lower overall funding costs Customer deposits (PHP bn) 450 CA/SA to Total Deposits (%) 388 396 400 342 353 350 397 316 300 171 165 119 148 250 120 112 58% 65% 58% 56% 200 62% 62% 150 223 205 217 232 100 185 196 50 0 2013 2014 2015 2016 2017 2Q18
Slide 19: Establish Broad Distribution Channels
Establish Broad Distribution Channels Branch and ATM Network 2,000 1,562 1,597 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 1H18 Branches ATMS ATM to Branch 2.64:1 3.14:1 ratio 19
Slide 20: 3. Recognition
3. Recognition 20
Slide 21: Awards and Recognition
World Finance — Best Banking Group in the Philippines – 2012, 2013, 2014, 2017 — Best Commercial Bank in the Philippines – 2011, 2017 AsiaMoney — Best Domestic Private Bank in the Philippines - 2012, 2013, 2014 — Philippines’ Overall Best for Interest Rates - 2012 — Best for Interest Rate Derivative
Slide 22: 4. Appendix – Financial Information
4. Appendix – Financial Information 22
Slide 23: Consolidated Income Statement
Consolidated Income Statement (PhP bn) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H2018 Net Interest Income 8.47 10.27 10.88 10.84 11.40 13.31 14.97 15.58 15.71 18.02 9.67 Total Non Interest Income 4.6 5.89 8.41 10.09 11.34 9.81 7.10 6.66 7.11 7.10 3.14 Gross Income 13.07 16.16 19.29 20.94 2
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet (PhP bn) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H2018 Cash/Due from BSP/Due 28 29 36 46 52 70 76 84 107 93 84 from Other Banks Loans Arising From REPO 0 0 0 0 0 0 0 0 8 10 10 FVPL/FVTCI 26 46 71 88 95 3 21 9 24 13 13 Held to Maturity Investments 21 20 19 0 0 89
Slide 25: Consolidated Key Ratios
Consolidated Key Ratios 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H2018 Return on Average Capital 7.4% 12.0% 14.1% 16.6% 16.1% 12.2% 9.2% 9.3% 6.4% 6.7% 6.5% Funds Return on Average Assets 0.9% 1.2% 1.5% 1.6% 1.7% 1.4% 1.0% 1.1% 0.8% 0.8% 0.8% Net Interest Margin 4.3% 4.6% 4.6% 4.1% 3.9% 4.
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