Wednesday, 4 November 2009

RCBC profit surges 47% to P2.82 B

Manila Bulletin

Rizal Commercial Banking Corporation recorded a robust 47 percent net income growth in the first nine months of 2009 to P2.82 billion from the P1.92 billion in the same period last year.

The bank said in a disclosure to the Philippine Stock Exchange that its operating income expanded by P1.93 billion to P12.11 billion with net interest income and non-interest income increasing by 19.4 percent and 18.3 percent, respectively.

Net interest income was P1.23 Billion higher than the previous year’s P6.32 billion while non-interest income improved from P3.85 billion to P4.56 billion – primarily due to the strong growth in trading gains.

Excluding gain from sale of an office building booked in 2008, non-interest income growth would have been a more robust 33.4 percent.

The results also reflect a P 739 million increase in provisioning to provide for future contingencies, loan losses and losses from the recent typhoons.

“RCBC adopted strategies meant to prepare itself for a volatile economic environment in 2009. The bank raised an additional P4.2 billion in Tier 2 capital, sustained an aggressive low cost deposit campaign, exercised prudence in its loan approvals and achieved exceptional trading gains by riding the market’s volatility successfully,” said RCBC president Lorenzo V. Tan.

The bank also recently sought to lengthen the maturity profile of its foreign currency books through the issuance to its client base of $98.2 million in 3-year negotiable certificates of deposit.

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