Total Operating Income increased by 15.52% to P 10.76 Billion as Net Interest Income grew to P 5.49 Billion. Non-Interest Income growth of 33.65% was mainly supported by Trading Gains, Trust Fees, Service Fees and Commissions, and Other Income which totaled P 5.00 Billion or 95% of total Non-Interest Income.
The bank continued to expand its branch and ATM network in order to increase reach and improve customer convenience. As of end June 2012, the Bank's branch network increased to 395 and its ATM network to 892. Cost-to-income ratio improved to 59% from 62%.
The Bank's capital position stood strong, Capital Funds grew by 11.42% to P 41.22 Billion from P 36.99 Billion last year. Capital Adequacy Ratio (CAR) was at 17.11%, with much leeway for asset growth from the minimum regulatory requirement of 10%. Tier 1 ratio of 12.73% also exceeded the BSP's 6% requirement.
Total consolidated resources reached P 351.45 Billion up by 17% from P 300.49 Billion posted in the same period last year. Net loans grew by 16.5% to P 189.76 Billion from P 162.92 Billion. Corporate loans grew by 24%, SME by 39% and consumer loans grew by 28%. Loans-to-deposit ratio stood at 77.10%. Despite competitive pressures, annualized net interest margin remained high at 3.80%.
The Bank's Non-performing loans (NPL) ratio dropped to 1.53% from the previous year's 2.36%. Total provisions for the first semester totaled P 958 Million.
Total Deposits reached P 240.87 Billion as the bank continued to focus on growing its low cost CA/SA deposits which increased to P 134.34 Billion as of the end of June 2012.
Reflective of its commitment to the pursuit of systemic corporate governance processes, RCBC recently received the Silver Award for the Corporate Governance Scorecard for Publicly Listed Companies from the Institute of Corporate Directors. RCBC was also cited by Asiamoney magazine as the Overall Best Private Bank and Best Domestic Private Bank in the Philippines and by Finance Asia as one of the Best Managed Companies - Mid-Cap category.
For actively leading efforts to promote environmental sustainability, the bank also received the Green Leadership Award from Enterprise Asia during its recent Asia Responsible Entrepreneurship Awards in Singapore.
A new scalable and nimble core banking platform is now completely operational to support RCBC's thrust to improve transaction efficiency, and productivity. This is also expected to support innovation in product development. With the new platform, RCBC will focus on cross-selling and customer penetration the next 5 years as it continues to build businesses in less cyclical businesses in Microfinance, SME, Consumer Banking and Global transaction services.
RCBC is a member of the multi-industry conglomerate Yuchengco Group of Companies. It is a strong player in the remittance business with a wide presence overseas through remittance subsidiaries and tie-ups in North America, Europe, the Middle East and Hongkong.