Rizal Commercial Banking Corporation (RCBPM)
Philippines / Banking
Active
Issuer Summary
Rizal Commercial Banking Corporation is an upper-tier private universal bank in the Philippines, and its issuer credit is supported by deposits above PHP1tn, access to domestic and offshore bond markets, and improvement in net interest income since 2025. At the same time, it is too early to conclude that the bank is in an improving phase, given the rise in NPLs since 2023, higher impairment losses in 2025, rapid growth in consumer loans, cards, and auto loans, and the decline in CET1 in 1Q 2026. Senior bonds are within the consideration universe on an issuer-credit basis, but investors should require a higher risk premium than for top-tier Philippine banks and continue to monitor individual bond terms, ranking, depositor preference, treatment under resolution, foreign-currency and peso funding, capital and liquidity, and the quality of consumer loans.
At present, RCBC is a bank issuer whose senior credit is worth considering on an issuer-credit basis, supported by its deposit base, market access, improvement in net interest income since 2025, and LCR/NSFR above regulatory levels at end-2025. The direction of credit quality is stable to cautious. NIM improvement is positive, but rising NPLs, higher impairment losses, and the decline in CET1 in 1Q 2026 restrain any improvement assessment.
The main support for this view is RCBC’s upper-tier deposit and lending franchise in the Philippine banking system. It ranks sixth by total assets, seventh by deposits, and seventh by net loans in the BSP rankings, and had deposits of PHP1.062tn at end-March 2026. End-2025 LCR of 153.56% and NSFR of 125.69% are also liquidity supports.
At the same time, the earnings improvement from 2025 to 1Q 2026 has been supported by consumer-loan growth and lower funding costs. This is positive for earnings, but it also increases future credit-cost risk. The NPL ratio was 2.8% in both 2025 and 1Q 2026, and impairment losses were PHP15.0bn in 2025. If credit costs rise further, capital generation with ROE in the 6-7% range will be tested.
Issuer Reports
Current public reports for this issuer.