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Rizal Commercial Banking Corporation
#1
Business Profile:

Rizal Commercial Banking Corporation (RCBC) is a universal bank in the Philippines that provides a wide range of banking and other financial products and services, including commercial and retail banking, credit cards, asset management and treasury and investment banking products and services. It has total resources of P319.99 billion and total networth of P32.41 billion, including minority interest, as of end-December 2010. The Bank ranked fourth (4th) in terms of capital among private local banks (excluding government banks). In terms of business centers, the Bank, excluding government-owned and foreign banks, also ranked fourth (4th) with a nationwide network of 357 business centers, inclusive of 5 extension offices, supplemented by 609 ATMs, as of December 31, 2010.

The Bank offers commercial, corporate and consumer banking products and services throughout the Philippines, as well as treasury, cash management and remittance products and services. RCBC also enters into forward currency contracts as an accommodation to its clients and as a means of managing its foreign exchange exposures. The Bank and its subsidiaries are engaged in all aspects of traditional banking, investment banking, retail financing (credit cards, auto loans and mortgage/housing loans), leasing, foreign exchange and stock brokering.

The Bank, incorporated under the name Rizal Development Bank, began operations as a private development bank in the province of Rizal in 1960. It was acquired in 1962 by members of the Yuchengco Group of Companies (YGC), a financial services conglomerate with a strong market presence in insurance and other risk management services. In 1963, the Bank received approval from the Bangko Sentral ng Pilipinas to operate as a commercial bank and began operations under its present name, Rizal Commercial Banking Corporation (RCBC). In 1973, it formed alliances with two foreign banks, Continental Illinois National Bank and Trust Co. of Chicago USA (ConIll) and UFJ Holdings Inc. (UFJ), then known as the Sanwa Bank Ltd. of Japan. The relationship with ConIll ended in 1985 after it sold its shareholding to UFJ. RCBC acquired its universal banking license in 1989, marking another milestone in its history, and has been listed on the Philippine Stock Exchange Inc. (PSE) since 1996.

RCBC’s common shares are 50.41% owned by Pan Malayan Management and Investment Corporation (PMMIC), a company incorporated and domiciled in the Philippines. PMMIC is the holding company of the flagship institutions of the YGC and other investments.

The registered address of RCBC is Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, Makati City.

Additionally through its universal banking license, the Bank is allowed to perform a number of expanded commercial and investment functions and to invest in the equity of a variety of allied and non-allied financial and non-financial undertakings.

Additionally, as a universal bank, RCBC has equity investments in various industries which are vital to the country’s economic growth and which also serve the purpose of diversifying the Bank’s sources of income. Among these are Honda Cars Philippines, Inc.; Isuzu Philippines Corporation; Luisita Industrial Park Corporation; and Pilipinas Shell Petroleum Corporation.

Source: Annual Report 2010

Results of Operations:

31 March 2011 vs. 31 March 2010

RCBC generated a net income of P1.024 billion for the first quarter of 2011, P48 million or 4.96% higher than the P975 million reported for the same period last year. Net income of P1.024 billion accounted for 17.40% of gross revenues during the period.

Net interest income, representing 43.44% of gross revenues, reached P2.555 billion. Interest income of P4.071 billion, representing 69.19% of gross income, mainly consisted of interest income from loans and receivables and investment securities that accounted for 47.47% and 20.39% of gross revenues, respectively. Other interest income declined by 54.82% or P95 million from P174 million to P78 million mainly due to lower yields on reserves.

Total interest expense, making up 25.76% of total revenues, consisted of interest on deposit liabilities and interest on bills payable and other borrowings which accounted for 16.40% and 9.36% of gross revenues, respectively. Total interest expense reached P1.515 billion, with interest expense on deposit liabilities declining by 5.65% from P1.023 billion to P965 million mainly due to the decline in interest costs and improved funding mix. Interest expense on bills payable and other borrowings, on the other hand, went up by 19.07% or P88 million from P462 million to P551 million mainly due to the increase in bills payable.

Provisioning for impairment losses this period at P415 million was 14.39% lower year on year and accounted for 7.06% of gross revenues.

Accounting for 30.81% of gross revenues, other operating income grew by 18.40% or P282 million from P1.531 billion to P1.812 billion contributed by the following:
  • Trading and securities gain-net, increased by 31.52% or P163 million from P516 million to P678 million
  • Foreign exchange gains-net went up by 11.96% from P114 million to P127 million
  • Trust fees went up by 20.10% or P10 million from P50 million to P60 million propelled by the growth in trust assets; and
  • Other income grew by 20.82% or P82 million from P394 million to P476 million while service fees & commissions reached P471 million due to the strengthening in the core businesses of the Bank

Other operating expenses at P2.723 billion, representing 46.28% of gross revenues, were 10.11% higher year on year due to the following:
  • Depreciation and amortization increased by 20.32% or P34 million from P165 million to P199 million as a result of the Bank’s investments in core banking technology and the setting up of additional channels to provide customer convenience
  • Miscellaneous expenses went up by 13.81% or P117 million from P845 million to P962 million due to business expansion
  • Manpower costs increased by 9.23% or P66 million from P710 million to P775 million driven by the additional workforce for branch expansion
  • Occupancy and equipment-related costs grew by 5.11% or P22 million from P439 million to P462 million due to branch network expansion and increase in rental rates of existing branches; and
  • Taxes and licenses reached P325 million and accounted for 5.52% of gross revenues
Minority interest in net income declined by 16.36% to P1.441 million primarily due to the curtailed profitability of the Bank’s not wholly-owned subsidiaries for the period as against the same period last year.

Source: Q12011 Financial Report


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#2
Yuchengco = business savvy

Vivien + yuchenco = tiger lady bullies the stock market

That's my 5 cents worth of wisdom
The World is a Vampire . . .
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#3
who is vivien?
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#4
(06-30-2011, 05:02 PM)StockJunkie Wrote: Yuchengco = business savvy

Vivien + yuchenco = tiger lady bullies the stock market

That's my 5 cents worth of wisdom
BULLS EYE kaya hindi naakyat RCB kasi mahilig mag bato sya pag tumitikada ang stock
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#5
Having said that... still averaging down, how ironic no? mwahaha
The World is a Vampire . . .
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#6
(07-05-2011, 06:51 AM)StockJunkie Wrote: Having said that... still averaging down, how ironic no? mwahaha
Tama naman eh kung hindi lang ako nag pa ipit sa mining stocks i would do the same thing

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#7
RCBC finalizes P5-B share sale to CVC Capital
By Ted P. Torres (The Philippine Star) Updated July 15, 2011 12:00 AM

MANILA, Philippines - Rizal Commercial Banking Corp. has finalized the sale of its 15-percent equity to CVC Capital Partners (CVC), a global private equity firm.

Last May, CVC and RCBC signed an accord for the purchase deal.

In a report, CVC acquired a 15-percent stake in RCBC equivalent to 171 million common shares priced at P29 per share or a total consideration of nearly P4.96 billion (approximately $115 million).

The investment raises RCBC’s capital by at least P3.7 billion ($86 million), and completing the capital raising strategy by RCBC in the second half of 2010.

The deal will entitle CVC Asia Pacific to two board seats and raises the bank’s Tier 1 capital by P3.7 billion.

Earlier, the International Finance Corp. (IFC) acquired a stake in RCBC worth P2.1 billion.

“The proceeds from these investments will support the strong growth in RCBC’s loan book, which in addition to large corporate clients targets growth in the consumer finance, SME and micro finance segments. The incremental capital raised may also be used to support the future acquisition of small and/or medium-sized banks in the Philippines,” Lorenzo V. Tan, RCBC president and chief executive officer, said in a press statement.

“It will be used to fund our growth, fulfill all the requirements under the Basel III framework, fund possible acquisitions, or feed the bank’s organic growth,” he added.

After the two new investments, the consolidated capital adequacy ratio (CAR) and Tier 1 CAR will increase to 19.89 percent and 14.91 percent, respectively.

Citi acted as RCBC’s sole financial advisor on this transaction.

CVC manages over $42 billion in funds and has one of the most active private equity investors in Asia currently investing dedicated funds worth approximately $6.8 billion.
The World is a Vampire . . .
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#8
I just love my bank... Smile slowly but surely...time deposit type...
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#9
For a Change ng maiba naman sa BASURA hihiih dito muna ko kay Pareng JOSE Angel

Brokeout at 31 today, Gap to fill 33-33.50...
Congrats to my Upcoming Brilliant protege for holding on at 27.20...
unli POP ka muna , though left a gap at 2960...saka na natin problemahin yan Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#10
parabolic Big Grin
If there's one more gift I ask of you Lord, it will be Peace... Here on Earth.
God is great... all the time
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