Rizal Commercial Banking Corporation posted an unaudited consolidated net income of P4.41 billion for FY 2014. Core income excluding trading gains and extraordinary income increased by 29%.
Reflective of the Bank’s strengthening core businesses, Net Interest Income reached P14.98 billion ahead by 13% versus P13.31 billion last year. Even with the intense pricing competition and low interest rate environment, Net Interest Margin (NIM) still improved by 8bps to 4.30% as against 4.22% in 2013 and remains one of the highest in the industry.
The Bank sustained the momentum in its core lending as loans excluding interbank loans expanded by 21% to P259.3 billion, with all market segments showing robust growth. Average loan volume of the corporate segment grew by 22%, consumer by 21% and SME by 35%. Microfinance lending thru Rizal Microbank also advanced with loan disbursements growing by 18% and outstanding loan portfolio increasing 45%.
Amidst the steady growth in loans, the Bank even managed to improve its asset quality with NPL ratio at its record lowest. Parent bank;s NPL Ratio declined to 0.30% as of end-2014 from 0.51% as of end-2013. Parent bank reserve cover also stood strong at 150.28%.
Total fee-based and miscellaneous income reached P4.3 billion accounting for 20% gross income, with remittance fees increasing by 35%. Retail banking commissions growing by 23%, and ATM income growing by 11%.
Total operating expenses were well-controlled at P14.1 billion, lower by 2%.
Average volume of CASA deposits for FY2014 increased by 19% to P192.7 billion. As of end-2014, total deposits reached P315.6 billion while low-cost CASA deposit level reached P196.36 billion leading to CASA-to-Total Deposits ratio of 62.2%.
Meanwhile, total number of Wealth Management clients increased by 11% to 2,798 leading to the growth in total asset under management (AUM) by 13% to P75.1 billion. For 2015, Wealth Management is looking to grow its clients and AUM by 18% and 20%, respectively.
Total consolidated resources grew by 9% to P457.74 billion while Capital Funds reached P52.56 billion. The Bank’s CAR of 15.37% is well above the BSP minimum requirement of 10% while Common Equity Tier 1 (CET1) Ratio of 11.83% also exceeded the minimum CET1 Ratio (with capital conservation buffer) of 8.50%. Return on Equity and Return on Assets stood at 9.4% and 1.03%, respectively.