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RCBC 1ST QUARTER NET INCOME UP BY 49.47% AT P1.53 BILLION

RCBC posted P 1.53 Billion in Net Income for the 1st Quarter of 2012, P 506 Million or 49.47% higher than the P 1.02 Billion registered during the same period last year. Annualized Return on Average Equity remained strong at 15.64%.

Total Operating Income increased by 28.53% to P 5.61 Billion as Net Interest Income grew by 6.11% or P 156 Million to P 2.7 Billion. Non-Interest Income growth of 60% was mainly supported by Trading Gains, Exchange Income and Trust Fees which totaled P 1.92 Billion or 66% of total Non-Interest Income.

The bank continued to expand its branch and ATM network in order to increase reach and improve customer convenience. As of end March 2012, the Bank’s branch network increased to 392 and its ATM network to 841. Cost-to-income ratio improved to 56.46% from 62.34%. Provisions totalled P 668 million.

The Bank's capital position stood strong, Capital Funds grew by 15.37% to P 41.73 Billion from P 36.17 Billion last year. Capital Adequacy Ratio (CAR) was at 18.11%, with much leeway for asset growth from the minimum regulatory requirement of 10%. Tier 1 ratio of 13.50% also exceeded the BSP's 6% requirement.

Total consolidated resources reached P 337.79 Billion from P 310.59 Billion posted in the same period last year. Net loans grew by 19.65% to P 185.70 Billion from P 155.21 Billion. Loans-to-deposit ratio stood at 73.38%. Despite competitive pressures, net interest margin remained high at 3.70%.

The Bank's Non-performing loans (NPL) ratio dropped to 1.44% from the previous year's 3.34%. NPL provisioning coverage improved to 113.51%.

Total Deposits reached P 237.82 Billion as the bank continued to focus on growing its low cost CA/SA deposits which grew by 20.11% while prudently reducing higher costing time deposits. CA/SA to Total Deposits ratio improved to 60.52% in the first quarter of 2012 compared to 55.97% in the same period last year.

RCBC's thrust to improve transaction efficiency, and productivity will be supported by a new scalable and nimble core banking platform completely operational in May 2012. This is also expected to support innovation in product development. With the new platform, RCBC will focus on cross-selling and customer penetration the next 5 years as it continues to build businesses in less cyclical businesses in Microfinance, SME, Consumer Banking and Global transaction services.

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.