Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — FY2022 Earnings Presentation
31 slides from Rizal Commercial Banking's earnings presentation, 2023
Slide 1: RCBC FY 2022 Investor Presentation
RCBC FY 2022 Investor Presentation 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: Investor Presentation FY 2022 agenda
Investor Presentation FY 2022 01 Economic Outlook 02 RCBC FY 2022 Performance 03 General Information 04 Appendix
Slide 4: Economic Outlook
Economic Outlook Mr. Michael L. Ricafort RCBC Chief Economist 4
Slide 5: Better-than-expected economic upturn despite higher inflation
Better-than-expected economic upturn despite higher inflation PH GDP now higher than +7.6% Inflation was elevated globally in 2022 as pre-pandemic levels GDP growth Russia-Ukraine war dealt a major shock (2022)[1] 9% 22.02 8% 19.52 19.41 18.27 17.95 7% 6% 5% 4% 3% 2% 1% 0% -1% '02 '03 '04 '05 '06 '0
Slide 6: Economic growth to moderate as base effects dissipate; interest rates to still rise
Economic growth to moderate as base effects dissipate; interest rates to still rise and plateau until US CPI eases Economic 2023 2022 2021 Key Market Catalysts for 2023: Indicators Forecast Actual Actual Complicated economic reopening in GDP Growth 5.5%-6.5% 7.6% 5.7% 1 China New COVID cases could s
Slide 7: RCBC FY 2022 Performance
RCBC FY 2022 Performance Ms. Chrissy P. Alvarez RCBC Corporate Planning Head and Chief Information Officer 7
Slide 8: RCBC accelerates solid momentum
RCBC accelerates solid momentum +20% Asset growth strategy paid off, making RCBC PH’s 5th largest privately- owned bank with P1.2T assets on the back of better-than-industry in total assets growth in earning assets, deposits and solid NIM. +27% Deposits shattered records in 2022 reaching P857B outpa
Slide 9: On track to become the undisputed challenger bank
On track to become the undisputed challenger bank Total assets In PhP billions 4,014 2,922 Up from rank #8 in 2,625 5th 2018 with 16% CAGR. 1,424 1,191 1,179 1,086 878 421 BDO MBTC BPI CBC RCBC PNB UBP SECB EWB Based on consolidated published balance sheets
Slide 10: Profits rose by 71% in 2022 to over P12B
Profits rose by 71% in 2022 to over P12B FY 2022 FY 2021 Change % Change INCOME STATEMENT 1 Gross Income 44,454 36,394 8,060 22.1% Net Interest Income 31,216 28,831 2,385 8.3% Fee Income 5,884 4,941 943 19.1% Operating Expenses 25,100 22,535 2,565 11.4% Impairment Losses 5,706 6,048 (342) (5.7%) Net
Slide 11: Earning assets drove 90% of increase in total assets
Earning assets drove 90% of increase in total assets Asset expansion supported by higher-than- On the back of record-high deposits which climbed 27% industry growth in interest-earning assets from previous year level (versus 12% industry benchmark) 857 672 457 536 423 YoY growth of 23% (vs industry’
Slide 12: Double-digit growth in SME and credit card segments
Double-digit growth in SME and credit card segments Loan Portfolio1 Loan Mix In Php Billions, except % As of December 2022 PL/SL 543 +6% Consumer SME Corp 1% 513 Auto 24% Housing 43% Consumer 158 +9% 29% Loans 145 Credit 93 107 +15% 51% 543B Card 32% 20% 273 276 +1% Credit card led the expansion of
Slide 13: Marked improvement in NPL from year-ago level
Marked improvement in NPL from year-ago level Net NPL Amount and Ratio Net NPL ratio per Segment In Php Billions, except % As of December 2022 25.0 3.3% 3.5% Corporate 0.4% 3.2% 3.0% 20.0 2.7% SME 2.0% 2.5% 2.1% 15.0 2.0% 2.0% Consumer 6.4% 1.5% 10.0 18.3 17.8 14.8 1.0% Credit Card 0.8% 12.8 11.4 5.
Slide 14: Record-high deposits outpaced industry
Record-high deposits outpaced industry Deposit breakdown CASA deposits In PhP Billions In PhP Billions 421 19% +27% 3-yr CAGR 857 373 versus 12% industry benchmark versus 13% industry CAGR 302 for the same period 672 +46% 250 436 versus 29% industry benchmark 299 +13% 373 421 versus 7% industry benc
Slide 15: Retail and insurance pushed fee income up nearly 20%
Retail and insurance pushed fee income up nearly 20% Fee income Fee income breakdown In Php Millions, except % In % Debit & Credit Cards Bancassurance Digital +19% YoY Loans Deposit & Branch Trust Securities & Brokerage 5,884 4,941 6% 64% 4,198 7% of increase in fee income was 3,829 9% attributable
Slide 16: Frontrunner in sustainable finance in PH
Frontrunner in sustainable finance in PH We are the first Philippine universal bank to issue sustainable financing instruments under ASEAN bond standards RCBC is also the first local bank to participate in PCAF, an initiative among financial institutions worldwide to harmonize assessments and disclo
Slide 17: Digital solution supporting contextual banking thrust
Digital solution supporting contextual banking thrust +44% +22% +31% YoY growth in gross YoY growth in gross YoY growth in gross transaction value transaction value transaction value >1000 Gross transaction value Gross transaction value In Billions In Billions 14.2 168 11.7 ATM Go merchants nationwi
Slide 18: Consolidated key financial indicators
Consolidated key financial indicators Dec 2022 Dec 2021 Change PROFITABILITY Return on Equity 11.2% 6.7% 4.5% Return on Assets 1.2% 0.8% 0.3% Net Interest Margin 3.7% 4.1% -0.4% COST EFFICIENCY Cost-to-Income Ratio 56.5% 61.9% -5.5% ASSET QUALITY Net NPL Ratio 2.0% 3.3% -1.3% NPL Coverage Ratio 84.4
Slide 19: General Information
yee S. [Rohe General Information
Slide 20: 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 21: 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 22: Investment Information
Investment Information Equity Profile Dividend History1 Credit Rating Dividends Pay-out Particulars YE 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 23.70 2020 0.56 20.0
Slide 23: 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. 22.20% Pan Malayan Management and Investment Corp. (PMMIC) & Affiliates of the Yuchengco Group of 39.6
Slide 24: 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 25: Appendix
Appendix 30
Slide 26: Consolidated Income Statement
Consolidated Income Statement FY 2022 FY 2021 Change % Change Interest Income 45,835 37,111 8,724 23.5% Interest Expense 14,619 8,280 6,339 76.6% Net Interest Income 31,216 28,831 2,385 8.3% Other Income 13,238 7,563 5,675 75.0% Trading Gains and Forex 1,530 1044 486 46.6% Trust Fees 415 392 5.9% 23
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet FY 2022 FY 2021 Change % Change Cash/Due from BSP & Other Banks 180,578 157,023 23,555 15.00% Investment Securities 374,365 219,235 155,130 70.76% Loans (net of Interbank) 531,124 507,302 23,822 4.70% Other Assets 68,041 75,573 -7,532 -9.97% TOTAL ASSETS 1,154,108 959,133
Slide 28: Historical Consolidated Income Statement
Historical Consolidated Income Statement 2018 2019 2020 2021 2022 Net Interest Income 20.5 22.4 26.3 28.8 31.2 Other Income 6.0 13.5 11.6 7.6 13.2 Gross Income 26.5 35.9 37.9 36.4 44.5 Impairment Losses 1.9 7.4 9.4 6.0 5.7 Income before Operating Expenses 24.6 28.5 28.5 30.3 38.7 Operating Expenses
Slide 29: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet 2018 2019 2020 2021 2022 Cash/Due from BSP/Due from Other Banks 94 123 148 157 181 Loans Arising From REPO 10 6 13 12 9 FVPL/FVTCI 30 60 45 56 122 Held to Maturity Investments 89 101 43 164 252 Interbank Loans and Receivables 10 19 43 31 28 Loans (net) 389 430 4
Slide 30: Historical Key Financial Indicators
Historical Key Financial Indicators 2018 2019 2020 2021 2022 Return on Average Capital Funds 5.80% 6.50% 5.50% 6.70% 11.24% Return on Average Assets 0.70% 0.80% 0.70% 0.80% 1.17% Net Interest Margin 4.00% 4.00% 4.30% 4.10% 3.70% Cost-to-Income Ratio 73.20% 60.80% 58.20% 61.90% 56.46% CASA to Total D
Slide 31: For more information about RCBC, please contact Investor Relations
For more information about RCBC, please contact Investor_Relations@rcbc.com 39
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