Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2022 Earnings Presentation
30 slides from Rizal Commercial Banking's earnings presentation, 2022
Slide 1: Investor Presentation 1Q 2022
Investor Presentation 1Q 2022 2
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: Agenda
1 Economic Overview Signs of economic recovery 2 RCBC 1Q 2022 Overview Sustained core business growth 3 General Information Investment information and ownership 4 Appendix Other financial information 4
Slide 4: Economic Overview
(Rohe Partners Through Generations Investor Presentation 1Q 2022 O Economic Overview
Slide 5: The Bank expects recovery in 2022 and beyond
The Bank expects recovery in 2022 and beyond 2023 2022 2021 Economic Indicators* Forecast Forecast Actual GDP Growth 6.0%-6.5% 6.0%-6.5% 5.7% USD/PhP (Year-End) 52.50-53.50 52.00-53.00 50.999 USD/PhP (Average) 52.75-53.75 51.50-52.50 49.25 Inflation (Average) 3.0%-3.5% 3.5%-4.5% 3.9% BSP Policy Rate
Slide 6: Key success factors for the new administration
Key success factors for the new administration Credible and competent Economic Team Policies that promote ESG (environment, society, governance) to help attract more investments. Strengthen institutions, rule of law. More effective response vs. the COVID-19 pandemic Focus on economic recovery measur
Slide 7: 1Q 2022 Overview
(Rohe Partners Through Generations Investor Presentation 1Q 2022 C2 1Q 2022 Overview
Slide 8: RCBC is a leading financial services provider in the PH
RCBC is a leading financial services provider in the PH Incorporated in 1960, RCBC is the 6th largest private universal bank in the Philippines by assets, with a market capitalization of PhP 41.77B (USD 0.8B) as of end-March 2022. It was also recognized as the Best Digital Bank, Best Retail Bank and
Slide 9: RCBC's profit jumps 36% in 1Q 2022
RCBC’s profit jumps 36% in 1Q 2022 *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Including trading and FX gains
Slide 10: 1Q 2022 net income up 23% vs previous quarter
1Q 2022 net income up 23% vs previous quarter *Amounts in PhP Millions, except % and ratios [2] Loans and Receivables net of Allowances and Interbank Loans [1] Including trading and FX gains
Slide 11: Core business continued on an upward trajectory
Core business continued on an upward trajectory Gross income expanded by 19% year-on-year Net interest income increased on the back of higher driven by the 25% rise in net interest income earning assets by 35% 12 720 758 813 604 676 9.8 10 9.1 9.3 8.3 8.6 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 8 Ea
Slide 12: Loan expansion was focused on key segments
Loan expansion was focused on key segments Loan Portfolio1 Loan Mix Credit Card In Php Billions, except % As of March 2022 34% 14% 66% growth year-on-year 517 Housing Loans 482 8%62% growth year-on-year 143 141 2% 28% 16% 94 81 18% 517B 258 8% 278 54% Mar 2021 Mar 2022 Corp SME Consumer 2 [1] Total
Slide 13: NPL eases due to tightened credit management
NPL eases due to tightened credit management Net NPL Amount and Ratio Net NPL per Segment In Php Billions, except % As of March 2022 25.0 3.3% 3.3% 3.3% 3.5% Corporate 1.1% 3.2% 3.2% 3.0% 20.0 2.5% SME 1.7% 15.0 2.0% Consumer 11.3% 1.5% 10.0 18.0 18.3 17.8 16.1 16.8 1.0% Credit Card 1.0% 5.0 0.5% We
Slide 14: RCBC at the forefront of sustainable financing
RCBC at the forefront of sustainable financing We are the first Philippine universal bank to issue green and AA sustainable financing instruments under global standards ESG rating PhP 70B 60% PhP 14.8B Loans eligible under Of the loans eligible under sustainable Raised from the issuance of sustainab
Slide 15: Digital transactions augment the diversified fee revenue
Digital transactions augment the diversified fee revenue Fee Income 291% Increase in digital Breakdown by source revenues Fee Income In Php Billions 2%1% 3%5% 14% 8% 6% 8% 44% 46% 9% 11% 24% 19% Mar 2021 Mar 2022 1.4 1.3 1.2 1.1 1.1 Debit & Credit Cards Trust Bancassurance Deposit & Branch Investmen
Slide 16: 20% deposit rise stronger than industry average
20% deposit rise stronger than industry average Robust deposit build-up will continue by improving our sales productivity through technology, tapping the growing middle class with products for the mass affluent, and offering a wide range of cash management products for Corporate and SME clients Depo
Slide 17: Consolidated key financial indicators
Consolidated key financial indicators Mar 2022 Mar 2021 Change PROFITABILITY Return on Equity 8.0% 6.2% 1.8% Return on Assets 0.9% 0.8% 0.1% Net Interest Margin 4.1% 4.0% 0.1% COST EFFICIENCY Cost-to-Income Ratio 59.4% 68.5% (9.1%) ASSET QUALITY Net NPL Ratio 3.2% 3.2% 0.0% NPL Coverage Ratio 63.9%
Slide 18: RCBC is recognized for its strong franchise across business lines
RCBC is recognized for its strong franchise across business lines 22
Slide 19: General Information
(Rohe Partners Through Generations Investor Presentation 1Q 2022 S General Information
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 ra
Slide 21: Investment Information
Investment Information Equity Profile Dividend History1 Credit Rating Dividends Pay-out Particulars 1Q 2022 Year per share ratio Ticker RCB 2022 0.62 20.00% Long Term Deposit Baa3 Outstanding Senior Unsecured Baa3 2,037.48M 2021 0.49 19.96% shares Baseline Credit Stock Price PhP 20.50 2020 0.56 20.0
Slide 22: Ownership Structure
Ownership Structure Cathay Life Insurance, founded in 1962, is Taiwan’s largest insurance company. It is owned by Cathay Financial Holding, one of the largest financial holding companies in Taiwan. 22.18% Pan Malayan Management and IFC is the largest global development 5.29% 50.11% Investment Corp.
Slide 23: Comprehensive and Diversified Business Platform
Comprehensive and Diversified Business Platform RCBC RCBC RCBC Capital Rizal RCBC Forex Brokers International Corporation Microbank Leasing Corporation Finance1 99.96% 98.03% 99.67% 100% 100% RCBC Securities RCBC RCBC Corporation Rental Investment Ltd 99.96% 99.67% 100% RCBC Bankard Services Corpora
Slide 24: Appendix
(Rohe Partners Through Generations Investor Presentation 1Q 2022
Slide 25: Consolidated Income Statement
Consolidated Income Statement 1Q 2022 1Q 2021 Change % Change Interest Income 10,274 8,432 159 0.4% Interest Expense 2,222 1,967 (2,391) (22.4%) Net Interest Income 8,052 6,465 2,550 9.7% Other Income 1,850 1,848 (4,069) (35.0%) Trading Gains and Forex 144 11 (5,614) (84.3%) Trust Fees 102 91 69 21.
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Mar 2022 Mar 2021 Change % Change Cash/Due from BSP & Other Banks 96,024 149,614 9,329 6.3% Investment Securities 275,391 116,399 130,853 148.6% Loans (net of Interbank) 512,417 474,066 59,136 13.2% Other Assets 77,880 60,717 (12,291) (14.0%) TOTAL ASSETS 961,712 800,796 1
Slide 27: Historical Consolidated Income Statement
Historical Consolidated Income Statement 2018 2019 2020 2021 1Q 2022 Net Interest Income 20.5 22.4 26.3 28.8 8.1 Other Income 6.0 13.5 11.6 7.6 1.8 Gross Income 26.5 35.9 37.9 36.4 9.9 Impairment Losses 1.9 7.4 9.4 6.0 1.6 Income before Operating Expenses 24.6 28.5 28.5 30.3 8.3 Operating Expenses 1
Slide 28: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet 2018 2019 2020 2021 1Q 2022 Cash/Due from BSP/Due from Other Banks 94 123 148 157 96 Loans Arising From REPO 10 6 13 12 19 FVPL/FVTCI 30 60 45 56 63 Held to Maturity Investments 89 101 43 164 213 Interbank Loans and Receivables 10 19 43 31 25 Loans (net of Inter
Slide 29: Historical Key Financial Indicators
Historical Key Financial Indicators 2018 2019 2020 2021 1Q 2022 Return on Average Capital Funds 5.8% 6.5% 5.5% 6.7% 8.0% Return on Average Assets 0.7% 0.8% 0.7% 0.8% 0.9% Net Interest Margin 4.0% 4.0% 4.3% 4.1% 4.1% Cost-to-Income Ratio 73.2% 60.8% 58.2% 61.9% 59.4% CASA to Total Deposits 54.4% 54.7
Slide 30: Thank you.
Thank you. RCBC Investor Presentation 1Q 2022 og
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