Net income fell to P4.11 billion from P5.3 billion a year earlier, although the bank said its core business continued to gain momentum.
Gross income rose 11.6 percent to P33.91 billion, driven by an 18.2 percent increase in net interest income as loan expansion and improved funding efficiency lifted net interest margin to 5.1 percent.
“We are navigating a complex and shifting macroeconomic landscape,” RCBC president and CEO Reginaldo B. Cariaso said in a statement on Thursday.
“However, we have been building up our defenses, strengthening our balance sheet, and pursuing measured portfolio growth to protect, scale, and elevate the strong franchise that is RCBC," he added.
Consumer lending drives growth
Customer loans grew 9 percent to P806 billion, led by a 22 percent increase in consumer lending to P402.4 billion, while deposits reached P1.06 trillion.
Total assets climbed to P1.41 trillion, and the bank ended the period with P150.84 billion in capital and a 13.4 percent capital adequacy ratio, comfortably above regulatory minimums.
RCBC said higher credit impairment provisions weighed on earnings as it responded to heightened geopolitical uncertainties, even as it continued to strengthen its balance sheet and funding profile.
—Edited by Miguel R. Camus
