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RCBC YEAR-TO-DATE SEPTEMBER 2011 NET INCOME AT P 4.08 BILLION

RCBC posted 4.08 Billion in Net Income for the first nine months of 2011, higher by 11.4% vs. P 3.66 Billion in the same period last year. Annualized Return on Equity (ROE) stood strong at 15.88%.

Net interest income was stable at P 8.0 Billion, accounting for 53% of the Bank's Gross Income while Other Operating Income increased by 11.4% to P 7.13 Billion. The growth in Other Operating Income was accounted for by service fees, commissions, and other income higher by 33.78%, trust fees up by 19.2%. Net Interest Margin of 4.15% is among the highest in the industry.

The bank continued to build its financial strength following a deliberate strategy of prudent balance sheet management. Total consolidated resources reached P 311.86 Billion, 5.89% higher than the P 294.54 Billion posted in the same period last year. Loans grew to P 166.92 Billion, as the corporate loan book rose by 15.54% and the SME loan book by more than 23.48%.

The Bank's Non-performing loans (NPL) ratio dropped to 2.13% from the previous year's 5.46%.

Capital Funds grew by 22.97% to P 41.19 Billion from P 33.49 Billion last year on the back of investments by IFC and CVC Capital Partners. Capital Adequacy Ratio (CAR) stood strong at 20.26% as of September 2011, with much leeway for asset growth from the minimum regulatory requirement of 10%, Tier 1 ratio of 15.30% also exceeded the BSP's 6% requirement.

Total Deposits as of end-September 2011 totaled P 218.29 Billion as the bank continued to focus on growing its low cost CA/SA deposits which grew by 19.42% while prudently reducing higher costing time deposits. CA/SA to Total Deposits ratio improved to 61.54% in the first nine months of 2011 compared to 52.16% in the same period last year. The expansion of its distribution channels through increasing the number of its branch and ATM networks, and the addition of more features to its electronic banking facilities.

Operating Expenses totalled P 9.10 Billion as the bank continued to expand its branch and ATM network in order to increase reach and improve customer convenience. Parent bank Cost to Income Ratio for the period was at 55.63%. As of the end of September 2011, the bank's branch network, including the 10 branches of J.P. Laurel Bank and 2 branches of Rizal Microbank, reached 380 from 349 in 2010. The bank now has 691 ATMs compared to 554 in September 2010.

Reflective of RCBC's commitment to excellence, the Bank received three more awards from AsiaMoney the “Best Domestic Provider of FX Services – Philippines (as voted by Financial Institutions); the “Best Domestic Provider of FX Services – Philippines (as voted by Corporates); and the Best Domestic Provider of FX Prime Broking Services – Philippines (as voted by Corporates).

RCBC's thrust to improve transaction efficiency, and productivity will be supported by a new core banking platform completely operational by 2012. This is also expected to support innovation in product development.

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 Hong Kong.