RCBC sees faster growth in home and auto loans

RIZAL Commercial Banking Corp. (RCBC) is seeing faster growth rates in its home and auto loans in the later part of this year.

RCBC said in a statement Tuesday that Ramil de Villa, the head of its consumer finance group, highlighted the lender’s strong pipeline for home loans, while auto loans typically increase in the fourth quarter of the year.

“For mortgages, we have a growing pipeline. Over the next two quarters, mortgages will grow steadily to meet their target,” he said.

De Villa said the good growth of the housing loan sector, which stood at 9% in 2021, supported him.

“For automotive, there won’t be a significant increase in sales during the third quarter, but the fourth quarter is usually when the high sales trend occurs,” he noted.

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De Villa said the bank “exceeded its performance” in the first quarter of the year in consumer loans, with sales of 1.3 billion pesos in mortgage loans and 1 billion pesos in mortgages. car loans, respectively.

RCBC said car and home loans made up 20% of its total loan portfolio in March 2022.

In total, its net income rose 36% to 2.1 billion pesos from 1.58 billion pesos last year, while total assets increased 20% to 962 billion pesos, loans and receivables representing 56% and investment securities 29%. , respectively. RCBC said it was a player in the auto and home loan market.

With the planned expansion of the car loan business, de Villa also revealed that the bank was able to reduce its non-performing assets in terms of repossessed cars by 60-70% from December last year to April of This year.

“There’s no more building swell – one of the best indicators that we’re doing well in auto lending. We’ll continue to be a relevant player in the auto market, but we will with caution,” he said.

“We’re managing to generate revenue while prudently growing auto loans through better operations and stronger collections. If you have a stronger defense, you can protect your existing portfolio,” de Villa added.