Stock News 2013: RCBC posts 24% profit growth

Rcbc plaza (Photo credit: Wikipedia)

Yuchengco-led Rizal Commercial Banking Corp. grew its net profit last year by 24 percent to P6.21 billion on higher interest and fee-based income, and hefty treasury gains.

RCBC also firmed up a deal with International Finance Corp. for the purchase of $100 million worth of additional shares in the bank. A separate agreement was finalized to unload P5 billion worth of non-performing assets (NPAs) to a consortium that also includes IFC.

On its 2012 results, the bank’s profit translated to a return on equity of 15.52 percent and a return on assets of 1.77 percent.

Despite pressures on margins in a record-low interest rate environment, RCBC reported that its net interest income had grown by 6.5 percent to P11.45 billion. The bank ended last year with a loan book of P190 billion, 3 percent higher than the level of loans and receivables booked in 2011.

The growth in RCBC’s lending activities was supported by the expansion in lending to consumers (25 percent), small and medium enterprises (37 percent) and corporate loans (8 percent).

Net interest margin was 3.95 percent, one of the highest in the industry.

http://business.inquirer.net/108043/rcbc-posts-24-profit-growth

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Stock News 2012: RCBC nets P5 billion in 2011

Rcbc plaza (Photo credit: Wikipedia)
Rizal Commercial Banking Corp. (RCBC) registered an 18-percent increase in net earnings in 2011 to P5.01 billion from P4.25 billion in 2010.

In a statement, the bank said huge gains were realized from trading, service fees, commissions and trust fees which grew to P7.11 billion, representing 74 percent of non-interest income.

Meanwhile, net interest income stood at P10.75 billion, slightly lower than the P10.8 billion in 2010.

RCBC officials said the bank continued to build on its financial strength following a deliberate strategy of prudent balance sheet management.

Total consolidated resources reached P345.77 billion, or 8.06 percent higher than the prior year.

Loans grew to P184.67 billion with corporate accounts rising 30 percent, SME loans by 37 percent, and consumer loans by 15 percent. Net interest margin was high at 4.09 percent.

Its non-performing loan (NPL) ratio dropped to 1.47 percent from the previous year’s 3.10 percent. Likewise, NPL provisioning coverage improved to 103.4 percent.

Capital funds grew 25.10 percent to P40.55 billion from P32.41 billion a year ago on the back of higher earnings and the P5.8-billion Tier 1 equity investments by the World Bank’s International Finance Corp. (IFC) and CVC Capital Partners, one of the top five largest private equity firms in the world.

The consolidated capital adequacy ratio (CAR), an international measure of estimating the general health of a bank, stood at 19.31 percent as of end-2011, with much leeway for asset growth from the minimum regulatory requirement of 10 percent. The CAR Tier 1 ratio of 14.58 percent also exceeded the BSP’s six percent requirement.

Total deposits ballooned to P255.46 billion as the bank continued to focus on growing its low cost deposits, which grew 20.33 percent, while prudently reducing higher costing time deposits.

Operating expenses reached P12.15 billion as the bank continued to expand its branch and ATM network in order to increase reach and improve customer convenience.

http://www.philstar.com/ArticleListBySubCategory.aspx?publicationSubCategoryId=66

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Stock News 2011: Robinsons seeks comm’l bank license

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Robinsons Bank Corp. will operate as a commercial bank once the Bangko Sentral ng Pilipinas grants it the necessary license.

A KB license will allow RobinsonsBank to offer its clients a wider array of innovative financial products such as foreign letters of credit and other trade instruments and put the bank in an even greater capacity to serve as it aims to be among the country’s top 10 commercial banks.

The Securities and Exchange Commission’s recent approval of the merger between Robinsons Savings Bank and Robinsons Bank Corp. completes the legal and regulatory requirements needed by the BSP to award Robinsons Bank Corp., the surviving commercial bank entity from the merger of the two Gokongwei-owned banks, a KB license.

http://mb.com.ph/node/321434/robin

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Stock News 2011: Chinatrust’s net profit grows 20% to P410M

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The Philippine unit of Taiwan-based banking giant Chinatrust Commercial Bank grew its net profit in 2010 by 20.84 percent to P410 million, on the back of improved interest margins and large treasury earnings.

This translated to 7.3 percent return on equity and 1.6 percent return on assets of Chinatrust (Philippines) Commercial Bank.

Better margins were on account of lower cost of funds while income from treasury operations substantially increased, the bank in a disclosure to the Philippine Stock Exchange on Thursday.

"The favorable economic environment that prevailed last year allowed Chinatrust to take advantage of the opportunities in the bond markets," the bank. Trading gains and foreign exchange gains thus amounted to P307 million, an increase of 90.33 percent from a year ago.

http://business.inquirer.net/money/breakingnews/view/20110317-325976/Chinatrusts-net-profit-grows-20-to-P410M

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Stock News 2011: Meralco says customers to see lower bills

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The Bangko Sentral ng Pilipinas (BSP) reported over the weekend that banks' non-performing loans (NPL) ratio last year dipped further to 2.88 percent, lower than end-2009's 2.97 percent due to the industry's improving capital health.

The end-December NPL ratio was also the lowest recorded ratio for universal and commercial banks since the 1997 Asian financial crisis, said the BSP, and the 27th consecutive month that the NPL ratio has been below four percent.

BSP in a statement said the NPL ratio eased by 0.19 percentage point compared to November's 3.07 percent and by 0.09 percentage point from the previous year's ratio.

Improvement to the ratio resulted from the 3.04 percent drop in total NPLs of P80.8 billion from P83.33 billion in November and the 3.34 percent growth in total loan portfolio of P2.8 trillion in December from P2.71 trillion a month before. NPLs are loans that have remained unpaid for 90 days

At the end of December, provisioning for bad loans led to the NPL coverage ratio improving to 118.35 percent from November's 116.53. The non-performing assets (NPA) coverage ratio widened to 60.04 percent from 59.68 percent in the previous month. Year-on-year, the BSP said NPL and NPA coverage ratios increased reference ratios of 112.34 percent and 54.88 percent, respectively. Total NPAs amounted to P205.5 billion.

http://www.mb.com.ph/node/306536/bank