Rizal Commercial Banking Corporation (RCBC) looks forward to replicating this year the double-digit expansion of its consumer loans in 2018, a senior executive said on Thursday.
According to Rommel Latinazo, consumer lending group head, consumer loans were to account for a much larger share of the overall loan portfolio this year and before.
We’ve always been growing in double-digits. So, the intention is to sustain our double-digit growth in terms of consumer lending, Latinazo told reporters at the launch of their new Auto and Home Loan Plus product.
No specific numbers were cited but the executive said consumer loans grew close to 14 percent last year, which gave them the motivation to exceed and grow at a higher plane this year.
In 2018, we grew close to 14 percent. So, this gives you an idea that…of course, Eugene Acevedo will not accept anything lower than that, he quickly added, referring to RCBC President and CEO’s target number this year.
According to him, consumer lending as well as lending to small and medium enterprises (SME) will be the pillars of growth for the bank moving forward. More or less 50 percent of the business will be in consumer and SME loans.
Latinazo is also confidence the accommodative stance made by the Bangko Sentral ng Pilipinas in the policy rates and the banks’ deposit reserve requirement will encourage consumers to borrow more from the banks.
We’d like to look at it positively…that will result in interest rates to ease right, particularly on the lending rates and that would now attract more business/customers. They will be encouraged to resort to more borrowing for their consumer financing, he explained.
And then of course, we’d like to continue supporting our countrymen in terms of the need for shelter for their home needs. With the easing of rates, (credit) demand should further grow, he added.
Previously, RCBC projected the same double-digit net income growth this year as it focuses on growing its consumer and SME loan lending program.