Rizal Commercial Banking (RCB) Q1 2025 earnings summary

Executive summary

• Net income reached P2.4B in Q1 2025, up 10.3% year-over-year, driven by strong net interest and fee income growth.

• Total assets grew to P1.35T, with loans and receivables comprising 55.8% of resources and loans up 13.1% to P715B.

• Digital platforms contributed significantly, with 8.8M gross transaction volume and digital loans comprising 65% of total.

• Issued USD350M in sustainability bonds in January 2025, boosting bonds payable by 73.6%.

• Recognized for digital leadership and sustainability, with a P127B sustainable portfolio and multiple industry awards.

Financial highlights

• Net interest income rose 28.7% year-over-year to P12.3B, representing 84% of total operating income.

• Fee income increased 25.8% to P2.6B, driven by credit card and loan activity.

• Operating expenses grew 10.9% to P8.6B; impairment losses surged 73.3% to P2.9B.

• Net NPL ratio at 2.5%, up from 1.7% last year, with NPL coverage at 73.8%.

• Cost-to-income ratio improved to 58.7% from 63.5% year-over-year.

Outlook and guidance

• Philippine GDP growth forecasted at 5.5%-6.0% for 2025, with inflation expected at 2.0%-2.5%.

• BSP policy rate projected to ease to 5.00%-5.25% by year-end, supporting lending and liquidity.

• Peso expected to remain stable, with USD/PHP at 55.50-56.50 by year-end.

• PSEi seen rising to 7,000-7,500, reflecting improved market sentiment.

• Management does not anticipate material adverse impacts from current trends or uncertainties on future income.