1H 2024
Investor Presentation
August 2024
1H 2024
Performance
Chrissy P. Alvarez Corporate Planning Head
Our 1H 2024 performance at a glance
Boosting
margins
Growth with
quality
Best digital
CX
- Earning assets jumped 12%, driving NII up 29%
- Loans surged 13%, led by 38% rise in consumer loans
- Credit cards outpaced industry, growing 53% year on year
- Fees up 33% versus last year
- Consumer expansion through data-driven cross sell campaigns
- Better than industry consumer NPL ratio of 4.35% (vs industry's 5.75%)
- PHP 119B in sustainable portfolio or 16% of our total loan portfolio
- Digital loan availments on the rise, accounting for 38% of unsecured loans
- Fintech-likegrowth across digital platforms; transaction volume at 19M
- Recognized as Best Bank for Digital by Euromoney for the 5th year
3.71%
in NIM, up 42 bps
3.77%
in gross NPL, 14 bps lower
29%
jump in gross digital transaction volume
458 | 7,858 | 6,535 |
branches | ATMs* | employees |
*includes ATM Go terminals--RCBC's handheld ATM facility that enables banking transactions outside branches and ATMs, and through partner merchants
Summary of consolidated financial results
1H2024 | 1H2023 | Change | % Change | |
INCOME STATEMENT | ||||
Gross Income | 25,010 | 23,455 | 1,555 | 6.6% |
Net Interest Income | 19,748 | 15,351 | 4,398 | 28.6% |
Fee Income | 3,936 | 3,170 | 765 | 24.1% |
Operating Expenses | 15,378 | 14,318 | 1,060 | 7.4% |
Impairment Losses | 3,606 | 3,455 | 151 | 4.4% |
Net Income | 4,450 | 6,220 | (1,770) | (28.5%) |
BALANCE SHEET | ||||
Assets | 1,260,898 | 1,174,267 | 86,630 | 7.4% |
Loans¹ | 654,504 | 576,772 | 77,732 | 13.5% |
Investment Securities | 373,782 | 339,318 | 34,464 | 10.2% |
Deposits | 959,918 | 899,741 | 60,177 | 6.7% |
Capital | 152,103 | 118,393 | 33,710 | 28.5% |
*Amounts in PhP Millions, except % and ratios
[1] Loans and Receivables net of Allowances and Interbank Loans
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Earnings up in first half driven by core business
Gross Revenue
In Php Billions, except %
23.5
20.3 | 5.0 | |
Adjusted | ||
Gross | ||
Revenue | ||
Excluding | ||
non-recurring | ||
gain on | sale | 15.4 |
of assets |
▲7%
Y-on-YRevenueGross 25.0
5.3
19.7
Quarterly Net Interest Income | ▲26% | |||
In Php Billions, except % | Y-on-Y | |||
Net Interest Income | ||||
9.3 | 9.6 | 10.2 | ||
8.9 | ||||
8.1 | ||||
2Q2023 | 3Q2023 | 4Q2023 | 1Q2024 | 2Q2024 | |
Net Interest Income | |||||
Fee Income Breakdown
In Php Millions, except %
2Q2024 | 64% | 25% | 5%6% | 3,936 |
▲23%
Y-on-Y
Gross
Revenue¹
2Q20232Q2024
Net Interest Income Other Income
▲24% | ||||||
Y-on-Y | ||||||
64% | 19% | 4% 14% | 3,170 | Fee Income | ||
2Q2023 |
Debit & Credit Cards | Loans | Investment Banking | Other retail transactions² | |||
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[1] Less non-recurring transactions [2] After the spin-off of RCBC Trust Corporation in January 2024, trust fees are not included.
Consumer segment leading portfolio growth
Loan Portfolio1 | +13% YoY | |||||
In Php Billions, except % | ||||||
654 | ||||||
622 | ||||||
543 | 580 | |||||
512 | 239 | +38% | ||||
203 | 172 | |||||
YoY | ||||||
158 | ||||||
145 | ||||||
107 | 127 | 118 | 127 | +7% | ||
93 | YoY | |||||
273 | 276 | 291 | 289 | 288 | -0.3% |
YoY |
Dec-21Dec-22Dec-23Jun-23Jun-24
Corp SME Consumer [2]
- Total Gross Loan to Customer
- Consumer refers to Auto, Mortgage, Credit Card and Personal/Salary Loans
Loan Mix
As of June 30, 2024
PL/SL 1% | |||||||
Consumer | SME | Corp | Auto | ||||
Housing | 22% | ||||||
39% | Consumer | ||||||
37% | Loans | ||||||
44% | 654B | Card | |||||
Credit | |||||||
37% |
19%
Consumer segment grew by 38% driven by 53% growth in cards, followed with auto and housing loans up by 31% and 26%.
6
Maintained stable asset quality in all segments
Gross NPL amount and ratio
In Php Billions, except %
5.10%
4.58%
3.83%3.75%4.04%3.91% 3.77% | 3.51% | 3.77% |
3.34% |
28.6 | 24.8 | 22.8 | 21.4 | 24.1 | 24.2 | 24.4 | 22.9 | 23.4 | 26.1 |
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |
2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | 2024 | 2024 | |
Gross NPL | Gross NPL Ratio | |||||||||
Gross NPL ratio per segment
As of June 30, 2024
Corporate | 1.6% |
SME | 4.4% |
Consumer | 4.7% |
Credit Card | 3.8% |
The Bank's data and digital strategies, tightened credit and proactive remedial management paid off, controlled NPLs across loan segments.
7
Credit cards portfolio grew by 53% vs LY
1.13M
cards in force; 15% higher than last year.
Credit Card Spend
P87B
in issuing billings; 42% higher compared to year ago levels
P89B
in credit card receivables; 53% higher than last year
Monthly personal loans now at over 1 BN
New Personal Loans Volume
In Php Millions | 1140 |
In Php Billions
11.1 11.9 12.1 11.8
13.9 | 14.1 | 14.6 | 14.6 | 15.2 | 15.4 | 14.4 | |
13.4 | 13.6 | ||||||
6.1x
188 | bookings |
versus same |
period LY
Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24Apr-24May-24Jun-24
Jun-23 | Jul-23 | Aug-23Sep-23Oct-23Nov-23Dec-23 | Jan-24 | Feb-24Mar-24Apr-24May-24Jun-24 |
P5.8B
personal loans receivables; 249% increase vs last year
8
All-time high bookings for auto and housing
Auto & Housing Portfolio and Gross NPL
In Php Billions, except %
UKB | Gross NPL | |||
Industry | Ratio | |||
Housing | 7.2% | 5.6% | ||
6.80% | 6.23% | Auto | 5.7% | 3.1% |
5.38% | 4.93% | 4.73% |
We continued to transform the housing & auto loans business
Affluent acquisition program
with the help of data science
Wholesale approach
through developer accreditation
112.7 119.4 126.0
135.2 143.8
Strong brand positioning of auto in the provinces
Innovative products & solutions
to enhance CX and create positive disruptions
2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | |
Loan Portfolio | Gross NPL Ratio | ||||
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Accelerate consumer loans and credit cards
Consumer loan portfolio
in PHP billions, % growth year-on-year
138 | 141 | 144 | Consumer | ||||||||||
+26% | |||||||||||||
135 | |||||||||||||
132 | |||||||||||||
129 | |||||||||||||
126 | |||||||||||||
122 | 123 | ||||||||||||
119 | |||||||||||||
115 | 117 | ||||||||||||
113 | |||||||||||||
Cards & PL | |||||||||||||||||||||||||||||||||||||||||||||||||||||
95 | +58% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
80 | 83 | 85 | 88 | 91 | |||||||||||||||||||||||||||||||||||||||||||||||||
60 | 62 | 65 | 68 | 71 | 74 | 77 | |||||||||||||||||||||||||||||||||||||||||||||||
Q1 2024 RCBC consumer loan portfolio vs industry
in PHP billions, % growth year-on-year
Volume | % Growth | ||||||
RCBC | Industry | RCBC | Industry | ||||
Real Estate | 88 | 942 | 25% | 8% | |||
Motor Vehicles | 48 | 402 | 23% | 20% | |||
Credit Card | 81 | 745 | 55% | 30% | |||
Personal Loans | 4 | 146 | 153% | 18% | |||
TOTAL | 220.3 | 2,234.1 | 35% | 17% | |||
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