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February 6, 2008 |
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RIZAL COMMERCIAL: Net Profit in 2007 Up 56% to PHP3.21 Billion Rizal Commercial Banking Corporation, recorded its highest net income in history with unaudited net income of PHP3.21 billion for full year 2007, 56.0% above last year's PHP2.05 billion. Operating Income expanded by 29% to PHP10.12 billion with Net Interest Income and Non-Interest Income increasing by 43% and 10%, respectively. For the whole of 2007, Net Interest Income was pegged at PHP6.59 Billion, PHP1.98 Billion higher than the previous year's PHP4.61 Billion. RCBC's historic Net Income performance saw the bank recasting its target twice from its original target of PHP2.5 Billion. "The structural and operational strategies undertaken the past 2 years, the PHP5.6 Billion new capital raised in February 2007, coupled with an aggressive low cost deposit campaign, a prudent loan growth and treasury trading strategy delivered the very good full year results for RCBC," said RCBC President and CEO Lorenzo V. Tan. In 2007,the unibank's Non-Interest Income swelled to PHP4.01 Billion or by PHP327 Million as most income categories including Gains from Asset Disposals and Leases (up 107%), Income from Investments and Dividends (up 82%), Commissions and Fees (up 60%) and Other Income (up 49%) posted gains. RCBC's cost-to-income or efficiency ratio at the end of 2007 stood at 57.5%, much improved from the 66.4% recorded in 2006. This reflected healthy growth in revenues with strong management control over expenses. RCBC's Balance Sheet accounts also showed significant movement in 2007. Total Consolidated Resources reached PHP239 billion at end-December 2007, a PHP15 billion improvement from December 2006's P224 billion. The growth was funded by the PHP19 billion increase in Deposits to P176 billion, with PHP137 billion coming from Peso Deposits and PHP39 billion from FCDU Deposits. The year saw the bank's loan accounts growing faster than deposit liabilities as its loans to deposit ratio expanded from 57.7% in 2006 to 64% in 2007. Consumer loans through its subsidiary, RCBC Savings Bank, grew by 12%. Total Capital Funds also expanded by PHP5 billion to PHP29 billion pushing the Capital adequacy ratio, on consolidated basis, to 18.7% from 16% a year ago. This resulted from a series of capital raising initiatives starting with the Hybrid Tier I and preferred shares issues of 2006. This was capped by the successful follow on public offer of RCBC shares, which raised for the bank some PHP5.6 Billion in fresh capital in the 2nd quarter of 2007. At year-end, RCBC's non-performing loans ratio of 5.6% and non- performing assets ratio of 14.3%, both took major reductions from the previous year's 7.6% and 22%, respectively. In late 2007, the Board of Directors of the bank approved the purchase by RCBC of Merchants Savings and Loan Association, Inc. from Finman Capital Corporation. The bank is awaiting BSP approval to finalize its purchase. RCBC is the country's fourth largest private universal bank in terms of capital base with more than 303 branches nationwide. In the last 12 months, RCBC opened seven new domestic branches and four new branches in North America. It is a strong player in the remittance business with a wide presence overseas through remittance subsidiaries and tie-ups in North America, Europe and Hongkong. RCBC is a member of the multi-industry conglomerate Yuchengco Group of Companies. Rizal Commercial Banking Corporation -- http://www.rcbc.com/ is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the bank's foreign exchange exposure. The Troubled Company Reporter-Asia Pacific on Feb 4, 2008, reported that Moody's Investors Service has changed the outlook on RCBC's E+ bank financial strength rating and foreign currency hybrid tier 1 debt rating of B3 to positive from stable. The rating action does not affect the bank's B1 foreign currency long-term deposit ratings and foreign currency senior unsecured debt rating of Ba3, which maintain their positive outlook. On November 2, 2006, the TCR-AP reported that Fitch Ratings assigned a final rating of 'B-' to RCBC's hybrid issue of up to US$100 million. The rating action follows the receipt of final documents conforming to information previously received. The TCR-AP also reported on October 24, 2006, that Standard & Poor's Ratings Services assigned its 'CCC' rating to Philippines' Rizal Commercial Banking Corp's (RCBC; B/Stable/B) US$100 million non-cumulative step-up callable perpetual capital securities. |
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