Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2022 Earnings Presentation
21 slides from Rizal Commercial Banking's earnings presentation, May 16, 2022
Slide 1: RCBC 1Q 2022 Analysts' Briefing
RCBC 1Q 2022 ANALYSTS’ BRIEFING 16 May 2022 4:30 PM 1
Slide 2: Agenda
Agenda 01 Economic Outlook 02 RCBC 1Q 2022 Performance 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 6
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: RCBC 1Q 2022 Performance
RCBC 1Q 2022 Performance Ms. Chrissy P. Alvarez RCBC Corporate Planning Head and Chief Information Officer 10
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 291% Increase in digital Fee Income Fee Income revenues In Php Billions Breakdown by source 3%5% 2%1% 8% 14% 8% 6% 46% 44% 11% 9% 19% 24% 1.4 1.3 1.2 Mar 2022 1.1 1.1 Mar 2021 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 24
Slide 19: Question & Answer
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Slide 20: For more information about RCBC, please contact
For more information about RCBC, please contact Investor_Relations@rcbc.com 38
Slide 21: RCBC 1Q 2022 Analysts' Briefing
RCBC 1Q 2022 ANALYSTS’ BRIEFING 39
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