Money

RCBC profit down 7% in 2020 on increased loan loss provisions

Rizal Commercial Banking Corp. reported a 7.41 percent drop in its net income last year to P5 billion as it set aside larger reserves to cover against bad loans from the pandemic.

Rizal Commercial Banking Corp. reported a 7.41 percent drop in its net income last year to P5 billion as it set aside larger reserves to cover against bad loans from the pandemic.

Loan loss provisions increased by 2.5 times to P9.3 billion to cope with unprecedented market conditions.

The Yuchengco bank’s core business remained strong with gross income rising six percent to P37.9 billion while net interest income grew 18% to P26.3 billion on lower funding costs and higher margins.

RCBC’s diversified loan portfolio continued to expand by five percent to P456.6 billion, led by the small and medium enterprises and consumer loan segments which registered year on year growth of eight percent and five percent, respectively.

Despite the slowdown in industry, RCBC’s credit card business still rose by three percent in terms of credit card receivables.

The bank continues to strengthen its balance sheet with a 64 percent expansion in loans and receivables and 11 percent in investment securities.

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