RCBC 3Q 2024
Investor Presentation
December 10, 2024
9M 2024
Performance
Chrissy P. Alvarez Corporate Planning Head
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Our financial performance at a glance
Driving Core
Business Growth
Strengthening
Financial
Resilience
Transforming CX via data & digital
- Earning assets jumped 11% on the back strong growth in loans
- Sustained recovery of NII amid loan growth
- Service fees and commissions up by 32% vs. year ago
- Healthy NPL ratio despite loan expansion across all segments
- CAR and CET1 ratio at 16.2% and 13.7%
- Total capital Php 158B or 8% higher vs. 3Q2023
- Four digital channels: Pulz App, Boz App, Diskartech and ATMGo
- 51 AI models deployed across the organisation
- Almost 90% shifted from over-the-counter to apps, ATM, & cards
₱6.2B
net income
3.7%
consolidated
gross NPL ratio
30M
in gross transaction volume; up 50 YoY
₱698B
in loans; driven by
consumer
13.7%
CET1 ratio
As of September 2024
7,013
ATMGo terminals as of
September 2024
463 branches | 8,495ATMs* |
6,686 employees
*includes ATM Go terminals--RCBC's handheld ATM facility that enables banking transactions outside branches and ATMs, and through partner merchants | 4 |
Summary of consolidated financial results
9M2024 | 9M2023 | Change | % Change | |
INCOME STATEMENT | ||||
Gross Income | 37,767 | 43,702 | 5,935 | (13.6%) |
Net Interest Income | 30,931 | 24,246 | 6,686 | 27.6% |
Fee Income | 6,275 | 5,056 | 1,220 | 24.1% |
Operating Expenses | 23,289 | 21,893 | 1,396 | 6.4% |
Impairment Losses | 5,612 | 4,957 | 655 | 13.2% |
Net Income | 6,215 | 9,032 | (2,817) | (31.2%) |
BALANCE SHEET | ||||
Assets | 1,284,972 | 1,200,264 | 84,707 | 7.1% |
Loans¹ | 681,255 | 604,050 | 77,210 | 12.8% |
Investment Securities | 398,100 | 346,500 | 51,600 | 14.9% |
Deposits | 990,440 | 901,835 | 88,605 | 9.8% |
Capital | 158,098 | 146,664 | 11,434 | 7.8% |
*Amounts in PhP Millions, except % and ratios
[1] Loans and Receivables net of Allowances and Interbank Loans
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Sustained profitability amidst one-off impacts
Gross Revenue
In Php Billions, except %
▲26% | |
Quarterly Net Interest Income | Q-on-Q |
In Php Billions, except % | Net Interest Income |
36
Adjusted
Gross
Revenue
Excluding non-recurring gain on sale of assets
▲5%
42 Y-on-Y 38
Gross
Revenue1
30.9
24.2
11.7
6.8
11.2 | |||
9.3 | 9.6 | 10.1 | |
8.9 | |||
3Q2023 | 4Q2023 | 1Q2024 | 2Q2024 | 3Q2024 | |
Net Interest Income | |||||
Fee Income Breakdown
In Php Millions, except %
3Q2024 | 64% | 22% | 6% 7% | 6,275 | ||
▲24% | ||||||
Y-on-Y | ||||||
63% | 16% 5% | 16% | 5,056 | Fee Income | ||
3Q2023 |
3Q20233Q2024
Net Interest Income Other Income
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.
Fueling profits: Strategic asset growth & optimized funding
Expanding asset base driving sustainable income growth
YoY Growth | 1,083 |
of 13% |
1,048 1,045
981
953
3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | 3Q 2024 |
Average Earning Assets*
*Earning assets only include loans and investment securities
Favorable rate outlook reducing funding cost pressures
BSP policy rate (O/N RRP rate) outlook in %, as of end of period
200-250 BPS
2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
NIM positioned to benefit from market and spread improvement
4.00% | 4.08% | 4.11% | ||
3.70% | 3.60% | 3.71% | 3.78% | |
3.40% |
4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024
Net Interest Margin
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Strong capital ratios and steady growth trajectory
Capital Adequacy
Ratio
Tier 1 Capital
Ratio
17.37% | |||
16.14% | 16.24% | ||
16.13% | 15.29% | ||
13.76% | 15.23% | ||
16.5% | |||||
13.3% | 15.2% | 12.3% | 15.4% | ||
12.8% | 14.3% | ||||
CET1 Ratio | 13.3% | 12.8% | 12.6% | 12.1% | 14.0% | 14.7% | 13.7% |
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 9M 2024 |
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Accelerating portfolio growth through consumer loans
Loan Portfolio1
In Php Billions, except %
512 543 622
28% 29% 33%
18% 20% 20%
53% 51% 47%
+11% YoY
608 677
31% 39%
20%
19%
50% 42%
+40%
YoY
+9%
YoY
-5.4%
YoY
Loan Mix
As of September 30, 2024
PL/SL | |||||||
3% | |||||||
Consumer | SME | Corp | Auto | ||||
Housing | 22% | ||||||
37% Consumer | |||||||
Loans | |||||||
42% | 677B | 39% | |||||
Card | |||||||
Credit | |||||||
38% |
19%
Corporate loans at 42% with consumer loans at 39%, reflecting growing demand in retail lending. SME loans represent 19%, supporting a
Dec-21 Dec-22 | Dec-23 Sep-23 Sep-24 | ||||||
Corp | SME | Consumer [2] | |||||
- Total Gross Loan to Customer
- Consumer refers to Auto, Mortgage, Credit Card and Personal/Salary Loans
balanced and diversified loan mix.
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Maintained stable asset quality in all segments
Gross NPL amount and ratio
In Php Billions, except %
40.0 5.10%
4.58% | |||||||
35.0 | 3.83% | 3.75% | 4.04% | 3.91% | 3.77% | 3.77% | 3.74% |
3.34% 3.51%
30.0
25.0 | |||||||||||
20.0 | |||||||||||
15.0 | 28.6 | 24.8 | 24.1 | 24.2 | 24.4 | 23.4 | 26.1 | 27.1 | |||
22.8 | 21.4 | 22.9 | |||||||||
10.0 | |||||||||||
5.0 |
-
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||
2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | 2024 | 2024 | 2024 | ||
Gross NPL | Gross NPL Ratio | |||||||||||
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
-1.00%
-2.00%
-3.00%
Gross NPL ratio per segment
As of September 30, 2024
Corporate | 1.6% |
SME | 4.7% |
Consumer | 4.6% |
Credit Card | 3.5% |
The Bank's data and digital strategies, tightened credit and proactive remedial management paid off, controlled NPLs across loan segments.
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Exceptional growth in credit cards and loan bookings
1.21M
cards in force; 19% higher than last year, 281k new cards as of 9M24
Credit Card Issuing Billings
In Php Billions
P139B | P98B |
in issuing billings; 43% | in balances; 51% |
higher compared to year | improvement from last |
ago levels | year's level |
17.9 17.7
Monthly PL/SL loans now at over 1 BN
New Personal Loans Volume
In Php Millions
1,176
375 | 2x |
13.9 14.1 14.6 14.6
11.8
13.4 13.6 15.2 15.4 14.4
16.6
bookings vs LY
Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24
Sep-23 | Oct-23 | Nov-23 | Dec-23 | Jan-24 | Feb-24 | Mar-24 | Apr-24 | May-24 | Jun-24 | Jul-24 | Aug-24 | Sep-24 |
P8.3B
personal loans receivables; 278% increase vs last year
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