Digital Transformation of RCBC Lifts Net Income by More Than Half

The Rizal Commercial Banking Corp. (RCBC)’s initiative to develop its digital transformation has led to a net income increase of more than half in the period of January to September.

In RCBC’s statement to the Philippine Stock Exchange, the bank stated that it had posted a net income of ₱10.1 billion in the nine months of this year. This was a notable 88% increase from the same period last year. Their gross income also increased by 29% during this period.

“The continued thrust towards customer centricity and digital transformation allowed the bank to innovate, and be more competitive, leading to sustainable growth,” said President and CEO Eugene S. Acevedo in the statement.

RCBC mentioned that cash management solutions and deposit products enticed more customers and increased usage among clients.

Bank executives mentioned that the financial inclusion app reported a 63% increase or  ₱4.2 billion in transaction value after a double-digit year-on-year expansion of their customer base.

While the bank’s cost-to-income ratio increased from a previous 55% to now 63%, the rise in overall business volume played a part in the increase in variable expenses.

However, provision for impairment losses went down by 8% as asset quality continued to improve with the net NPL ratio going to 2.15%.

“We remain attentive to managing cost drivers vis-à-vis investments for the future,”  said Acevedo.

RCBC’s total consolidated network had 452 branches by the end of September. Since the beginning of the year, RCBC opened 19 new branches in selected business areas.

Source: Business Mirror