RCBC net income jumps 41% to P4.5B in 9 mos.

Our double-digit income growth is a reflection of the bank’s prudence in tapping the right prospects in the market.

Rizal Commercial Banking Corp. (RCBC) reported 41 percent higher net income in the first nine months of the year, to P4.5 billion from P3.2 billion in the same period in 2018 on the back of growth in its core businesses.

The listed lender said the surge was owed to the 24 percent growth in net interest income from loans and receivables, to P24.1 billion, boosted by higher average loan volume of key select markets.

Consumer loans, including mortgage loans, automobile loans and credit cards rose 18 percent to P126.3 billion, with gross outstanding credit card receivables accelerating 43 percent to P27.9 billion as of September.

Active card based climbed 26 percent to 863,000, the bank said. RCBC’s loans to small and medium enterprises also grew 20 percent to P64.8 billion.

We see more potential in the fast-growing consumer and SME sectors. We expect them to be 50 percent of our customer base by next year, RCBC president and chief executive officer Eugene Acevedo was quoted as saying in a disclosure to the stock exchange.

Our double-digit income growth is a reflection of the bank’s prudence in tapping the right prospects in the market, while expanding capacity and enhancing customer experience in the core business, he added.

Trading and FX gains amounted to P7.1 billion in the first nine months, while fee-based income rose 12 percent to P3.1 billion on the back of higher revenues from deposit and branch fees, card-related fees and trust fees.

RCBC said its operating expenses expanded nine percent to P670.7 billion. Total deposits rose to P424.2 billion with CASA deposits reaching P240.9 billion.