Rizal Commercial Banking (RCB) investor relations material

Executive summary

• Gross income rose 11.6% year-over-year to ₱33.9B, driven by an 18.2% increase in net interest income and strong consumer loan growth of 22%.

• Net income declined 23.1% year-over-year to ₱4.1B, impacted by a 68% surge in impairment losses and higher operating expenses.

• Total assets reached ₱1.41T as of June 30, 2026, up from ₱1.36T at year-end 2025, with deposits up 8.0% to ₱1.06T.

• Cost-to-income ratio improved to 53.6%, reflecting enhanced cost discipline.

• Return on equity (ROE) was 5.5% and return on assets (ROA) was 0.6%, both lower than the prior year.

Financial highlights

• Net interest margin expanded to 5.1% from 4.6% year-over-year.

• Gross customer loans increased 10.7% year-over-year to ₱800B, with consumer loans up 22%.

• Fee income grew 3.6% year-over-year, while trading gains and forex losses widened.

• Capital adequacy ratio (CAR) at 13.4% and CET1 at 12.5%, both above regulatory minimums.

• Operating expenses increased 5.8% to ₱18.2B, led by higher employee benefits and IT costs.

Outlook and guidance

• Philippine GDP growth forecast for 2026 is 3.0%-4.0%, below government targets, with inflation expected to remain elevated at 6.0%-7.0%.

• BSP policy rate projected to rise to 5.50%-6.00% by year-end 2026.

• Peso expected to remain weak, with USD/PHP seen at 60.00-61.00 by year-end.

• No known trends or uncertainties are expected to materially impact future income or operations.

• Management does not anticipate losses from outstanding commitments and contingencies.