RCBC Profit Dips 22.5% on Higher Provisions Amid Geopolitical Uncertainties

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) saw its first-half net income fall 22.5 percent after setting aside higher credit impairment provisions to cushion heightened geopolitical uncertainties, even as its core lending business expanded. In a disclosure on Thursday, the Yuchengco-led bank reported a net income of P4.11 billion for the first six months of 2026, down from P5.3 billion a year earlier. READ: RCBC Q1 net income up 12% to P2.7B “Net profit was impacted by credit impairment provisions in response to heightened geopolitical uncertainties. Despite these headwinds, the bank’s core business sustained its momentum,” RCBC said. Despite the earnings decline, gross income rose 11.6 percent to P33.91 billion, driven by an 18.2-percent increase in net interest income. Strategic loan growth and improved funding efficiency lifted RCBC’s net interest margin to 5.1 percent, while cost discipline reduced its cost-to-income ratio to 53.6 percent. Its total loan portfolio grew 9 percent to P806 billion, led by the consumer segment, which expanded 22 percent to P402.4 billion. RCBC attributed the growth to data analytics, strategic partnerships and targeted customer acquisition, while maintaining prudent underwriting and risk selection. As of end-June, total assets reached P1.41 trillion, while capital stood at P150.84 billion, translating to a capital adequacy ratio of 13.4 percent, well above regulatory requirements. READ: RCBC raises P20.5B via sustainability bond offer Deposits increased to P1.06 trillion, providing what RCBC described as a stable funding base. The bank also raised P20.5 billion from its oversubscribed 6.08 percent Series G ASEAN sustainability bonds in April to finance green and social projects. “We are navigating a complex and shifting macroeconomic landscape. 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,” said Reginaldo B. Cariaso, RCBC president and CEO. /pai INQ