RCBC Savings Bank, the consumer banking arm of the Rizal Commercial Banking Corp. (RCBC), reported net profits totaling P1.03 billion in 2014, down 10 percent from P1.15-billion net income the year before.
RCBC Savings President Rommel Latinazo said last year’s earnings were mainly driven by continuing growth in the bank’s core consumer-loan business.
“We continue to have positive outlook for the consumer-finance business as the country’s economic growth is seen to be sustained. However, challenges remain to be increasing because of competition and the entry of new players in light of bank liberalization and the Asean integration,” Latinazo told the BusinessMirror.
The slightly lower net income in 2014 compared to the previous year was attributed to the absence of significant trading gains realized in 2013.
Latinazo said net interest income increased by 19 percent to P4.2 billion, driven by 19-percent growth in loan portfolio to P52.6 billion.
The bank reported double-digit expansion in its core consumer business of auto and real-estate loans.
The bank aggressively increased its deposits by 25 percent year on year to P69.6 billion.
Total noninterest income declined due to lower trading gains as financial markets offered significantly less trading opportunities.
However, noninterest income derived from its core consumer-lending and retail-banking activities increased by 35 percent.
The bank also strengthened the marketing of its loans products, such as its MyHome for housing loans, MyWheels for auto loans, and MyBiz for small and medium enterprise (SME) loans.
RCBC Savings’s electronic products include MyWallet Visa cash card and AccessOne Corporate Internet Banking. Its ePassbook Premium Plus Savings Account offers tiered interest rates.
RCBC Savings total assets grew 22 percent to P80.7 billion.
The bank’s net worth stood at P8.2 billion as of end-2014.
Its capital adequacy ratio stood at 14.7 percent, well above the 10-percent minimum requirement of the Bangko Sentral ng Pilipinas.
RCBC Savings Bank has 150 branches and extension offices, and 390 automated teller machines nationwide.