Rizal Commercial Banking : Investor Presentation (Full Year 2023)

FY 2023

Investor Presentation

March 2024

Disclaimer

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control, that may change at any time, and could cause the actual results, performance or achievements of RCBC to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. Recipients are cautioned not to place substantial or undue reliance on these forward-looking statements. All forward-looking statements included in this presentation are made only as of the date of this presentation and neither RCBC, the Dealers, nor any of their respective affiliates, agents, advisors or representatives (including directors, officers and employees) intend or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document as a result of new information, future events or any other factors.

Recipients of this presentation are required to make their own independent investigation and appraisal of the business and financial condition of RCBC, and any tax, legal, accounting and economic considerations relevant to the situation. The Dealers may act as market makers or trade on a principal basis, or have undertaken or may undertake to trade for their own accounts, transactions in the Securities or related instruments of RCBC

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FY 2023

Performance

Chrissy P. Alvarez Corporate Planning Head

3

Stable foundations despite headwinds

Asset Growth

Solid Returns

Capacity Building

• Total assets jumped on the back of 15% increase in customer loans
• More than 1 million cards-in-force for Credit Cards
• Deposit rally driven mostly by CASA
• Upward trajectory of NII for the last 5 years
• Lower NPL ratio despite loan expansion across all segments
• Return on equity closed at 9.5%; return on asset hit 1.1%
• Four digital channels: Pulz App, Boz App, Diskartech and ATMGo
• CAR and CET1 ratio reached 17.4% and 14.7%
• RCBC Trust Corporation started its operations in January 2, 2024

₱1.2T

in total assets; 7.2% higher vs last year

₱50B

all-time high

revenues

₱65M

in gross transaction volume; up 33% YoY

₱622B

in loans; driven by

consumer

₱12.2B

in net income; core

profits up 10%

5,779

ATM Go terminals as of December 31, 2023

458 branches	7,239 ATMs*	6,410 employees

*includes ATM Go terminals--RCBC's handheld ATM facility that enables banking transactions outside branches and ATMs, and through partner merchants	4

Efficient expansion with leaner organization

Assets nearly doubled

after 5 years

1,237

645

Profits on track to triple

after 5 years

12.2

Headcount cut by 7%

after 5 years

6,886

6,410

4.3

2018

2019

2020

2021

2022

2023

In PhP Billions, except headcount

2018

2019

2020

2021

2022

2023

2018 2019 2020 2021 2022 2023

5

Consolidated key financial items

	FY 2023	FY 2022	Change	% Change
INCOME STATEMENT
Gross Income	49,941	44,454	5,487	12.3%
Net Interest Income	33,574	31,216	2,358	7.6%
Fee Income	7,082	5,884	1,198	20.4%
Operating Expenses	29,612	25,100	4,512	18.0%
Impairment Losses	6,914	5,706	1,208	21.2%
Net Income	12,216	12,080	136	1.1%
BALANCE SHEET
Assets	1,237,484	1,154,108	83,376	7.2%
Loans1	622,136	539,849	82,287	15.2%
Investment Securities	330,737	374,365	(43,628)	(11.7%)
Deposits	956,694	857,244	99,450	11.6%
Capital	152,277	116,361	35,916	30.9%

*Amounts in PhP Millions, except % and ratios

[1] Loans and Receivables net of Allowances and Interbank Loans

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Peak revenue boosted by NII, 8% increase vs. LY

Historical Revenues

In Php Billions, except %

					50	▲14%
				44
					CAGR 2018-
		37			16.4	23
		36
	36	13.2
		11.6	7.6
27	13.5							Other Income
6.1			29	31	34			Net Interest Income
		26
20	22
2018	2019	2020	2021	2022	2023

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Loan growth better than industry average

Monthly Trend - Loan Portfolio

SMBC Capital

infusion¹

2019 to December 2023

12%

11%

Industry growth

COVID-19 pandemic

5%

1%

Industry growth

12%

5%

Industry growth

Capital limits

6%

14%

Industry growth

14%

YoY growth vs Dec 2022

7%

Industry growth as of Dec 2023

Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 June 2020 July 2020 Aug 2020	Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 June 2021 July 2021 Aug 2021 Sept 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022	Apr 2022 May 2022 June 2022 July 2022 Aug 2022 Sept 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023	Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Jul 2023 Aug 2023 Sep 2023 Oct 2023 Nov 2023 Dec 2023
Source: Internal Loan Report, SOC Reports as of September 2023, BSP UKB report		8
[1] On July 31, 2023, RCBC completes the sale of an additional 15.01%	stake (PHP 27B) to Sumitomo Mitsui Banking Corporation "SMBC".

Loans up across all customer segments

Loan Portfolio1

In Php Billions, except %

	622	+15%
543
158	204	+29%
107	125	+17%

276

292

+6%

Dec 2022			Dec 2023
		Corp		SME			Consumer [2]

1. Total loans include microfinance loans of P1.2B as of Dec 2022, and P1.3B as of Dec 2023
2. Consumer refers to Auto, Mortgage, Credit Card and Personal/Salary Loans

Loan Mix

As of December 2023

						PL/SL 1%
Consumer		SME		Corp	Auto
					Housing	21%
					Consumer
	41%
	33%	Loans
47%	622B	Credit
					Card
						37%

20%

SME and Consumer segment grew by 17% and 29%, respectively.

In particular, credit cards drove consumer loan growth and closed 49% higher along with accelerated bookings in housing loans

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Beyond a million active credit cards to date

Cards-in-Force							1,014 1,023 1,030 1,042
In 000s,				977	984	992	1,002
		969	972
956	962

Jan-23Feb-23Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23

257K

new cards YTD; bring cards-in-force to more than 1M

P139B

in issuing billings; 45% higher compared to year ago levels

P75B

in total balances; 48% improvement from last year's level

1 Acquisition of quality customers

PayDay NOW on full blast since September 2023

P423M	224k
loans disbursed since	Prequalified	employee
public launch; with P6.3K	base; 50%	mobile
average loan amount	adoption rate

1. Building revenue per customer
2. Controlling credit costs

4 Drive digital transformation

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