Rizal Commercial Banking (RCB) Q3 2024 earnings summary

Executive summary

• Net income for 9M2024 was P6.2B, down 31.2% year-over-year, despite strong loan and fee income growth.

• Total assets reached P1.3T as of September 30, 2024, up 3.8% from year-end, driven by investment securities and loans.

• Earning assets rose 11% with loans at P698B, supported by consumer lending and digital transformation.

• Book value per share increased to P59.36 from P56.86 at year-end.

• Digital channels processed nearly 90% of transactions, with 51 AI models deployed for efficiency.

Financial highlights

• Net interest income grew 27.6% year-over-year to P30.9B, representing 81.9% of total operating income.

• Fee income rose 24.1% to P6.3B; operating expenses increased 6.4% to P23.3B; cost-to-income ratio at 61.7%.

• Other operating income declined 41.6% to P6.8B, mainly due to lower gains on asset sales and FX.

• Impairment losses increased by 13.2% to P5.6B.

• Earnings per share for nine months was P2.22, down from P2.79 year-over-year.

Outlook and guidance

• Philippine GDP growth projected at 5.5%-6.5% from 2024 onwards, with inflation expected to average 3.0%-3.5%.

• BSP policy rate seen declining to 4.75%-5.00% in 2025, supporting lower funding costs.

• No known trends or uncertainties are expected to materially impact net sales, revenues, or income from continuing operations.

• Bank expects continued growth in consumer lending and digital transactions.