The company said in a disclosure that it earned P1.02 billion in net income for the first three months of the year or a mere P48 million more from last year’s P975 million.
Annualized return on average equity remained at 13.11 percent, the company said.
“Even as the first quarter saw a tougher trading environment compared to 2010, we will continue to focus on building our core businesses in consumer, SME [small and medium enterprise], microfinance and cash Management services” RCBC president and chief executive officer Lorenzo Tan said in a statement.
Net interest income was flat at P2.6 billion, while other operating income increased by 18 percent to P1.8 billion.
“The growth in other operating income was mainly due to gains from Trust fees [20-percent increase], trading gains [32 percent], and commissions and fees [3 percent],” the company said.
Operating expenses grew by 10 percent as the bank continued to expand its branch network to 371 and ATM (automated teller machine) network to 632 ATM.
Capital funds grew by 17 percent to P36.8 billion from P31.4 billion last year.
In early March 2011 the International Finance Corp. invested over P2.1 billion or equivalent to 7.2 percent of the common shares of RCBC.
Capital adequacy ratio, which measures the ability of the bank to take risks, stood at 18.65 percent while Tier 1 ratio was at 13.6 percent.
Total consolidated resources reached P311 billion from P283 billion posted in the same period last year. The net loan portfolio, meanwhile, was at P155 billion. Loans to the top corporations also grew by 8.8 percent.
The expansion of its branch and ATM networks, the introduction of new retail banking products, such as the RCBC MyWallet Mercury Cards, contributed to the increase in its total deposits to P214 billion from last year’s P202 billion.
In February 2011 Sun Life Financial Philippines purchased 49 percent of Grepalife, the Yuchengco group’s life insurance arm.
“With Sun Life’s product development expertise, RCBC looks to derive increased fee income from banc assurance sales of Sun Life Grepa Financial products in the future,” the company said.
RCBC is also one of the major players in the remittance business with a wide presence overseas through remittance subsidiaries and tie-ups in North America, Europe, the Middle East and Hong Kong.
