Rizal Commercial Banking Corp., led by the Yuchengco group, reported Wednesday that its pre-provision operating profit climbed 13 percent year-on-year to P23.6 billion in the first nine months ending September, driven by healthier interest margins and steady core banking business. This key measure of underlying profitability shows how well the bank’s main operations are performing before setting aside funds to cover potential bad loans—a critical indicator for shareholders tracking long-term earning power.
The bank’s net interest income rose 15 percent to P47.1 billion, pushing total consolidated gross income up 9 percent to P51 billion. Its net interest margin—a key gauge of lending profitability—widened by 37 basis points to 5.05 percent, reflecting better returns on loans and lower funding costs. Total resources grew 8 percent to P1.42 trillion, while deposits reached P1.07 trillion, providing a solid funding base for future growth.
However, as RCBC set aside more funds to cover potential credit risks amid a challenging economic environment, its unaudited consolidated net income came in at P5 billion, down 39 percent from P8.18 billion a year earlier. This intentional, prudent provisioning means the bank is strengthening its defenses now to protect shareholders against future loan losses—a move that supports long-term stability even as it weighs on short-term bottom-line results.
Loan growth was kept measured at 6 percent year-on-year to P812.5 billion, with management prioritizing stricter credit standards over rapid expansion to keep the loan portfolio healthy. Operating efficiency also improved, with the cost-to-income ratio falling to 53.76 percent, while capital buffers remained well above regulatory requirements, giving shareholders confidence in the bank’s financial strength.
“We remain focused on building a stronger and more resilient bank by growing responsibly and putting our customers at the center of what we do,” said RCBC president and CEO Reginaldo B. Cariaso. “By strengthening our payments capabilities and expanding partnerships, we are creating more ways to serve our customers while positioning RCBC for sustainable long-term growth.”
The bank now serves 7 million customers and 1.6 million credit cardholders, expanding its reach through digital initiatives and key partnerships such as its enhanced tie-up with the Social Security System. With a broad network of physical and digital access points, RCBC is balancing near-term caution with investments that support enduring value for its shareholders.
