RIZAL COMMERCIAL Banking Corp. (RCBC) saw its net income decrease by 28.35% in the third quarter as its interest expense more than doubled and as non-interest income declined.
The Yuchengco-led bank’s attributable net income stood at P2.81 billion in the three months through September, down from P3.92 billion in the same period last year, according to its quarterly report submitted to the local bourse on Tuesday.
The lender’s third-quarter performance brought its attributable nine-month net income to P9.03 billion, down by 10.2% from P10.06 billion in the same period last year.
This translated to a return on average equity of 9.8% and a return on average assets of 1.1% in end-September, down from 10.02% and 11.2% in end-2022, respectively.
RCBC’s net interest income grew by 11.62% year on year to P8.9 billion in the third quarter, with interest expense more than doubling at 122.95% to P8.4 billion. This compared with the 47.37% rise in interest income to P17.3 billion.
The bank’s net interest margin was at 3.4% at end-September, down from 3.7% at end-2022.
Other income decreased by 33.25% to P3.6 billion, while other expenses rose by 11.73% to P7.57 billion.
As a result, the bank’s cost-to-income ratio was at 60.9%.
Net loans rose by 11.16% to P621.25 billion at end-September from P558.87 in end-2022 amid continued growth in corporate and consumer loans.
Metrobank noted its net loans represented 51.8% of total resources.
Its nonperforming loan (NPL) ratio improved to 1.8% as of September from 2% a year prior.
On the funding side, deposit liabilities rose by 5.2% to P901.83 billion from P857.24 billion.
As a result, RCBC’s loan-to-deposit ratio was at 67.5%.
Total assets reached P1.2 trillion, up by 4% from P1.15 trillion.
Total capital funds hit P146.7 billion, up by 26.04% from P116.36 billion. RCBC said this was mainly due to a P26.7-billion capital infusion.
The bank’s capital adequacy ratio stood at 17.10% as of September, while its common equity Tier 1 ratio was at 14.4%. — Aaron Michael C. Sy