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RCBC REPORTS 1ST QUARTER NET INCOME AT P1.02 BILLION
RCBC posted P 1.02 billion in Net Income for the 1st Quarter of 2011, P 48 M or 5% higher than the P 975M registered during the same period last year. Annualized Return on Average Equity remained strong at 13.11%.
Net Interest Income remained stable at P 2.6 billion while Other Operating Income increased by 18.4% to P 1.8 billion. The growth in other operating income was mainly due to gains from Trust fees (+20%), Trading gains (+ 32%), and Commissions and Fees (3%).
Operating Expenses grew by 10.1% as the bank continued to expand its branch network to 371 and ATM network to 632. Provisions totalled P 415 million.
Capital Funds grew by 16.9% to P 36.8 billion from P 31.4 billion last year. In early March 2011, RCBC and the International Finance Corporation (IFC) entered into an agreement whereby IFC invested over P 2.1 billion, equivalent to 7.2% of the common shares of the Bank. Capital Adequacy Ratio (CAR) stood strong at 18.65% while Tier 1 ratio was at 13.60%.
"Even as the first quarter saw a tougher trading environment compared to 2010, we will continue to focus on building our core businesses in Consumer, SME, Microfinance and Cash Management services" said RCBC President and CEO Lorenzo V. Tan.
Total consolidated resources reached P 311 billion from P 283 billion posted in the same period last year. The Net loan portfolio was at P 155 billion. Loans to the top corporates continued to grow by 8.8%.
The expansion of its branch and ATM networks, the introduction of new retail banking products such as the RCBC MyWallet Mercury Cards contributed to the increase in Total Deposits to P 214 billion from last year's P 202 billion. A strong focus on customer relationships generated gains of more than 12% in low cost fund levels.
In February 2011, Sun Life Financial Phils. agreed to purchase 49% of Grepalife. With Sun Life’s product development expertise, RCBC looks to derive increased fee income from bancassurance sales of Sunlife Grepa Financial products in the future.
RCBC is a member of the multi-industry conglomerate Yuchengco Group of Companies. It is a strong player in the remittance business with a wide presence overseas through remittance subsidiaries and tie-ups in North America, Europe, the Middle East and Hongkong.