Countering the slowdown in lending activity during this protracted pandemic, Rizal Commercial Banking Corp. (RCBC), led by Yuchengco, improved its second quarter profit compared to a quarter ago as well as a year ago despite the normalization of cash flow gains.
RCBC’s second quarter net profit was 1.75 billion pesos, rebounding 118% year-on-year and increasing 11% from the first quarter despite the reimposition of stricter quarantine protocols from late March to At the beginning of April.
That brought the bank’s first-half net profit to 3.3 billion pesos, up 7 percent from year-on-year.
Driven by a higher volume of business, RCBC has grown its core businesses while improving funding costs and realizing savings through digitization efforts and channel streamlining, said Christina Alvarez, head of business planning. RCBC company, during a press briefing.
RCBC’s customer lending business grew 9% year-on-year, even as its local banking counterparts contracted by 2% on average.
The bank reported an expansion in the corporate and small and medium-sized business segments of 10% and 17%, respectively.
On the flip side, commission-based income also grew by 47% as investment and retail trading intensified.
Gross income, net of trade and foreign exchange gains, increased 13% year-on-year to 16.9 billion pesos.
On the funding side, RCBC increased its low-cost deposits by 28% year-on-year, while investment securities rose 3.4 times last year’s level.
Thanks to âefforts to re-engineer and streamline business processes,â operating expenses increased a modest 1% year-over-year.
RCBC recorded 2.3 billion pesos in provisions for depreciation in the first half of the year, 55% below the level observed in the same period last year.
Total assets increased 18 percent to 845.8 billion pesos. INQ
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