Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Q1 2019 Earnings Presentation
24 slides from Rizal Commercial Banking's earnings presentation, March 2019
Slide 1: Investor Presentation March 2019
INVESTOR PRESENTATION March 2019 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 Equity Profile Dividends History Dividends Particulars 1Q2019 Year Pay-out ratio per share Ticker RCB 2019 0.45 17.02% Issued shares 1,935.63 mn 2018 0.62 20.02% Stock Price P26.70 2017 0.55 16.53% Market Cap P51.664bn (USD0.98bn) 2016 0.72 20.00% BV per share P4
Slide 7: Credit Ratings
Credit Ratings Moodys [1] Long Term Deposit Baa2 Long Term IDR - Senior Unsecured Baa2 Bank Financial baa3 Strength [2] *Investment Grade rating by Moody's on July 6, 2018 [1] As of July 6, 2018 [2] Reported as Baseline Credit Assessment (BCA) and Viability Rating by Moody’s. 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 sold its shareholding to UFJ Inc. Formed Bancassurance partnership with Sunli
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 March 31, 2019. Total Assets (in Blns) Total Deposits (in Blns) 2,361 2,500 4,000 2,977 2,000 1,611 1,582 3,000 2,270 2,070 1,500 2,000 1,018 745 720 888
Slide 12: 2. Financial Overview
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Slide 13: Income Statement 1Q 2019 vs. same period last year
Income Statement RCBC (Consolidated) 1Q 2019 (Unaudited) vs. same period last year (Amount in millions) 1Q 2019 1Q 2018 Peso Income Statement - Year to Date % Change (Unaudited) (Unaudited) Change Interest Income 9,083 6,906 2,177 31.5% Interest Expense 3,796 2,089 1,706 81.7% Net Interest Income 5,
Slide 14: Balance Sheet
Balance Sheet RCBC (Consolidated) (Amount in millions) As of Mar. As of Mar. Peso Balance Sheet % Change 31, 2019 31, 2018 Change Cash/Due from BSP & Other Banks 13,875 13,797 78 0.6% Investment Securities 140,181 88,679 51,502 58.1% Loans- net (including interbank) 404,013 371,981 32,032 8.6% Other
Slide 15: Loans: Growth by Segment
Loans: Growth by Segment • Successfully executed SME & consumer loan growth strategy FY 1Q 2019 FY 1Q 2018 Growth Mix Mix Corporate 56% 59% 0.5% SME 15% 14% 12% Consumer 29% 28% 12% Total 100% 100% 5% 15
Slide 16: Self Funding
Self Funding Increase proportion of CA/SA deposits to lower overall funding costs Customer deposits (PHP bn) 450 423 CA/SA to Total Deposits (%) 416 400 388 342 353 350 297 316 193 187 300 171 119 148 250 112 120 54% 55% 200 65% 58% 56% 62% 62% 150 100 223 205 217 231 229 185 196 50 0 2013 2014 2015
Slide 17: Establish Broad Distribution Channels
Establish Broad Distribution Channels Branch and ATM Network 2,000 1,562 1,593 1,593 1,488 1,500 1,342 1,150 1,202 1,000 481 508 509 507 500 435 449 456 0 2013 2014 2015 2016 2017 2018 1Q2019 Branches ATMS ATM to Branch 2.64:1 3.14:1 ratio 17
Slide 18: 3. Recognition
3. Recognition 18
Slide 19: Awards: World Finance, AsiaMoney, Asia Banking & Finance
World Finance — Best Banking Group in the Philippines –2013, 2014, 2017 — Best Commercial Bank in the Philippines –2017 AsiaMoney — Best Bank for SMEs in the Philippines - 2018 — Best Domestic Private Bank in the Philippines - 2013, 2014 — Best for Credit Derivatives - 2016 — Best Market Coverage –2
Slide 20: Other Awards in Communications and Branding
Other Awards —RCBC received several awards, among them six Quill Awards from the in the Area International Association of Business Communicators – 2018 of Communications and —The Gold Anvil for the brand refresh campaign – 2018 Branding —Recognition as part of the top 10 brand with the Most Improved
Slide 21: 4. Appendix – Financial Information
4. Appendix – Financial Information 21
Slide 22: Consolidated Income Statement
Consolidated Income Statement (PhP bn) 2013 2014 2015 2016 2017 2018 1Q 2019 Net Interest Income 13.31 14.97 15.58 15.71 18.02 20.49 5.29 Total Non Interest Income 9.81 7.10 6.66 7.11 7.10 6.01 2.86 Gross Income 23.12 22.07 22.23 22.82 25.12 26.50 8.15 Provision for Loan Losses 2.05 2.51 2.35 1.77 2
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet (PhP bn) 2013 2014 2015 2016 2017 2018 1Q 2019 Cash/Due from BSP/Due 70 76 84 107 93 94 88 from Other Banks Loans Arising From REPO 0 0 0 8 10 10 7 FVPL/FVTCI 3 21 9 24 13 30 40 Held to Maturity Investments 89 80 102 52 60 89 100 Interbank Loans Receivables 21 0.3 0.0 0.5
Slide 24: Consolidated Key Ratios
Consolidated Key Ratios 2013 2014 2015 2016 2017 2018 1Q 2019 Return on Average Capital 12.2% 9.2% 9.3% 6.4% 6.7% 5.8% 6.4% Funds Return on Average Assets 1.4% 1.0% 1.1% 0.8% 0.8% 0.7% 0.8% Net Interest Margin 4.2% 4.3% 4.2% 4.1% 4.3% 4.0% 3.8% Cost-to-Income Ratio 61.2% 64.5% 67.7% 76.1% 70.9% 73.2
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