MANILA, Philippines - Rizal Commercial Banking Corporation reported an 18 percent jump in unaudited net income last year to a record P5.01 billion from P4.25 billion in 2010.
In a disclosure to the Philippine Stock Exchange, the bank said its net interest income stood at P10.75 billion while its non-interest income grew 15 percent - supported mainly by trading gains, service fees, commissions and trust fees which totaled P7.11 billion or 74 percent of total non-interest income.
The bank continued to build its financial strength following a deliberate strategy of prudent balance sheet management. Total consolidated resources reached P345.77 billion, 8.06 percent higher than the 319.99 billion posted in the same period last year.
Loans grew to P184.67 billion, as the corporate loan book rose by 30 percent, SME loan book by 37 percent, and consumer loans by 15 percent. Net interest margin was high at 4.09 percent.
The Bank's non-performing loans (NPL) ratio dropped to 1.47 percent from the previous year's 3.10 percent. NPL provisioning coverage improved to 103.4 percent.
Capital funds grew by 25.10 percent to P40.55 billion from P32.41 billion last year on the back of higher earnings and the P5.8 billion Tier 1 equity investments by the International Finance Corporation (IFC) and CVC Capital Partners.
Capital Adequacy Ratio (CAR) stood strong at 19.31 percent as of end-2011, with much leeway for asset growth from the minimum regulatory requirement of 10 percent.
Tier 1 ratio of 14.58 percent also exceeded the BSP's 6 percent requirement.
Total Deposits as of end-2011 reached P255.46 billion as the bank continued to focus on growing its low cost deposits which grew by 20.33 percent while prudently reducing higher costing time deposits.
Operating expenses totalled P12.15 billion as the bank continued to expand its branch and ATM network in order to increase reach and improve customer convenience.