Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2024 Earnings Presentation
27 slides from Rizal Commercial Banking's earnings presentation, May 2024
Slide 1: 1Q 2024 Investor Presentation
1Q 2024 Investor Presentation May 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: Our financial performance at a glance
Our financial performance at a glance Accelerating core • Total assets jumped on the back of 12% increase in customer loans ₱2.2B ₱631B • Sustained recovery of NII amid loan growth net income, 32% in loans; driven by business increase in NII consumer • Service fees and commissions up by 44% vs. year
Slide 4: Summary of consolidated financial results
Summary of consolidated financial results 1Q2024 1Q2023 Change % Change INCOME STATEMENT Gross Income 12,237 12,993 (757) (5.8%) Net Interest Income 9,560 7,267 2,293 31.6% Fee Income 2,046 1,423 515 43.7% Operating Expenses 7,765 7,195 571 7.9% Impairment Losses 1,672 1,496 176 11.8% Net Income 2,2
Slide 5: Solid core income in the first quarter
Solid core income in the first quarter ▲32% Gross Revenue Net Interest Income Y-on-Y In Php Billions, except % In Php Billions, except % Net Interest Income 9.3 9.6 ▲12% 8.9 Y-on-Y 8.1 13 Gross 7.3 Revenue* 12 2.7 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 Net Interest Income 11 3.6 Fee Income Breakdown Adj
Slide 6: Consumer segment leading portfolio growth
Consumer segment leading portfolio growth Loan Portfolio1 +11% YoY Loan Mix In Php Billions, except % As of March 2024 622 632 PL/SL 1% 567 Consumer SME Corp Auto 543 21% 512 203 220 +35% Housing YoY 40% Consumer 163 Loans 158 145 35% 632B Credit 45% 127 +12% Card 112 126 37% 93 107 YoY 20% 273 276
Slide 7: Maintained healthy asset quality in all segments
Maintained healthy asset quality in all segments Gross NPL amount and ratio Gross NPL ratio per segment In Php Billions, except % As of March 2024 40.0 5.10% 4.58% Corporate 1.6% 5.00% 3.83% 3.75% 4.04% 3.91% 3.77% 35.0 3.34% 3.51% 4.00% 30.0 SME 3.8% 3.00% 25.0 2.00% Consumer 4.9% 20.0 1.00% Credit
Slide 8: High growth and yield on SME Loans
High growth and yield on SME Loans Historical SME Loans ▲12% 7.75% In Php Billions, Y-on-Y 127 126 Solid average yield; ▲14% better than budget CAGR 109 112 93 74 79 1.4% net NPL ratio for the segment; better than LY 128% total deposit to loan ratio for SME 2019 2020 2021 2022 2023 1Q2023 1Q2024 SME
Slide 9: Better-than-industry growth in credit cards
Better-than-industry growth in credit cards P75K P42B P81B Strong momentum in personal and salary loans receivables per card, in issuing billings; 42% in balances; 52% better than industry and higher compared to improvement from last higher than year ago year ago levels year’s level New Personal Loa
Slide 10: NPLs improved amid expansion in consumer loans
NPLs improved amid expansion in consumer loans Auto & Housing Portfolio Gross NPL ratio In Php Billions In % 140 8.00% ▲24% 235bps 135 7.50% Y-on-Y better than Consumer Loans 1Q2023 130 7.00% Portfolio 125 6.50% 120 6.00% 135.2 7.3% 6.8% 115 5.50% 126.0 6.2% 110 119.4 5.00% 112.7 5.4% 105 108.9 4.50
Slide 11: Steady growth in deposits boosted by CASA
Steady growth in deposits boosted by CASA Historical Deposits & CASA Cash management solutions to support CASA In Php Billions, ▲13% growth… Y-on-Y CASA 957 959 857 859 672 536 502 487 Fund Transfers & 457 421 432 Cash Cube CheckScan 423 Checks 373 302 on top of stronger corporate and SME banking 23
Slide 12: Multiple digital platforms for different segments
Multiple digital platforms for different segments PH’s 1st neighborhood RCBC’s financial & last mile ATM All-in-one hub inclusion super app network RCBC’s industry-leading DiskarTech will pivot into a Bringing formal banking mobile banking app with more loans-focused app to rural community the most
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: 23 recognitions across various fields
23 recognitions across various fields • Best SME Bank – Philippines • Best Bank for Sustainable Development – Philippines • Best Retail Bank – Philippines • Best Cash Management Bank – Philippines • Best Corporate Bank - Philippines • Digital Bank of the Year • Best ATM Project – ATMGo • Best SME Fi
Slide 15: Consolidated key financial indicators
Consolidated key financial indicators 1Q 2024 1Q 2023 Change PROFITABILITY Return on Equity 5.6% 13.3% -7.7% Return on Assets 0.7% 1.3% -0.6% Net Interest Margin 3.6% 3.1% 0.5% COST EFFICIENCY Cost-to-Income Ratio 63.5% 55.4% 8.1% ASSET QUALITY Net NPL Ratio 1.7% 2.0% -0.3% NPL Coverage Ratio 89.0%
Slide 16: General Information
General Information Overview, Milestones & Ownership 22
Slide 17: 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 18: 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 March 31, 2024. Main Business Lines Investment Information Particulars As of March 2024 Corporate Banking SME Banking Digital B
Slide 19: 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 20: 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 21: Appendix
RCBC Appendix
Slide 22: Consolidated income statement
Consolidated income statement 1Q2024 1Q2023 Change % Change Interest Income 18,885 14,668 4,217 28.8% Interest Expense 9,324 7,401 1,924 26.0% Net Interest Income 9,560 7,267 2,293 31.6% Other Income 2,676 5,726 (3,050) -53.3% Trading Gains and Forex 11 463 (452) -97.6% Trust Fees - 107 (107) -100.0
Slide 23: Consolidated balance sheet
Consolidated balance sheet 1Q2024 1Q2023 Change % Change Cash/Due from BSP & Other Banks 129,750 174,579 -44,829 -25.68% Investment Securities 398,821 351,259 47,562 13.54% Loans (net of Interbank) 630,578 563,431 67,148 11.92% Other Assets 71,795 64,674 7,121 11.01% TOTAL ASSETS 1,230,944 1,153,942
Slide 24: Historical income statement
Historical income statement 2019 2020 2021 2022 2023 1Q2024 Net Interest Income 22.4 26.3 28.8 31.2 33.6 9.6 Other Income 13.5 11.6 7.6 13.2 16.4 2.7 Gross Income 35.9 37.9 36.4 44.5 49.9 12.2 Impairment Losses 7.4 9.4 6.0 5.7 6.9 1.7 Income before Operating Expenses 28.5 28.5 30.3 38.7 43.1 10.6 Op
Slide 25: Historical balance sheet
Historical balance sheet 2019 2020 2021 2022 2023 1Q2024 Cash/Due from BSP/Due from Other Banks 123 148 157 181 187 130 Loans Arising From REPO 6 13 12 9 36 17 FVPL/FVTCI 60 45 56 122 94 142 Held to Maturity Investments 101 43 164 252 237 256 Interbank Loans and Receivables 19 43 31 28 28 19 Loans (
Slide 26: Historical key financial indicators
Historical key financial indicators 2019 2020 2021 2022 2023 1Q2024 Return on Average Capital Funds 6.50% 5.50% 6.70% 11.24% 9.53% 5.64% Return on Average Assets 0.80% 0.70% 0.80% 1.17% 1.06% 0.72% Net Interest Margin 4.00% 4.30% 4.10% 3.70% 3.43% 3.60% Cost-to-Income Ratio 60.80% 58.20% 61.90% 56.4
Slide 27: For more information about RCBC, please contact
For more information about RCBC, please contact Investor_Relations@rcbc.com 35
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