RCBC nine-month operating profit rises 13.5% on wider margins

Insider Spotlight

• Core earnings strengthen — Pre-provision operating profit climbed 13.5 percent to P23.6 billion on improved interest margins
• Net income at P5 billion — The bank maintained precautionary credit provisioning amid economic uncertainty
• Lending stays selective — Customer loans grew 6.3 percent as RCBC prioritized asset quality over aggressive expansion
  
  
  
  

Rizal Commercial Banking Corp. (RCBC) posted a 13.5 percent increase in pre-provision operating profit to P23.6 billion in the first nine months of 2026, driven by stronger interest earnings and wider margins despite economic headwinds.

Why it matters

The Yuchengco-led bank's core operations strengthened as it maintained precautionary credit provisioning amid economic uncertainty.

RCBC reported P5 billion in unaudited consolidated net income for the nine-month period, although its earnings release did not provide a year-on-year comparison.

Driving the numbers

Consolidated gross income rose 9 percent to P51 billion, supported by a 15.2 percent increase in net interest income to P47.1 billion.

Net interest margin widened by 37 basis points to 5.05 percent, reflecting steady asset yields and lower funding costs, according to the company's earnings release.

Operating efficiency also improved, with the cost-to-income ratio declining by 181 basis points to 53.76 percent.

Lending cautiously

RCBC maintained tighter credit underwriting and selective lending to safeguard asset quality amid macroeconomic uncertainties.

Gross customer loans increased 6.3 percent year-on-year to P812.5 billion, while deposits reached P1.07 trillion. Total resources expanded 8.2 percent to P1.42 trillion.

Balance sheet check

The bank maintained a capital adequacy ratio of 13.18 percent and a common equity tier 1 ratio of 12.30 percent, both exceeding regulatory minimums.

What they're saying

“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,” RCBC president and CEO Reginaldo B. Cariaso said.

“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 bigger picture

RCBC continued expanding its digital banking and payments network, serving 7 million customers and 1.6 million credit cardholders.

Its distribution network included 473 branches and branch-lite units and 7,095 physical and digital cash terminals as of September 2026.

The bank also expanded its partnership with the Social Security System through the MySSS Card and electronic contribution channels.

Bottom line

Stronger interest margins and improved operating efficiency supported RCBC's underlying earnings, while selective lending and precautionary provisioning underscored its cautious approach to growth. —Princess Daisy C. Ominga | Ed: Corrie S. Narisma