Rizal Commercial Banking Corp. (RCBC) said the exceptional growth momentum of its auto and housing loans under the consumer loans business was likely sustained in the fourth quarter of 2023.
Latest data showed that monthly consumer loan bookings grew 70 percent year-on-year to P3.4 billion from January to September 2023 from P2.0 billion in the same period in 2022.
“Consumer lending business grew by 70 percent YoY [year-on-year], driven by new product models sourced both from YGC [Yuchengco Group of Companies] and traditional partnerships [dealers and developers] along with competitive pricing on segments and our identified target market of better asset quality,” said Ramil De Villa, senior vice president and head of RCBC consumer lending group.
“Our efforts in the market to improve our loans growth as well as leads generation are not just coming from the branches and other internal channels, but equally seen in the increase of volume from our traditional businesses,” he said.
The bank’s auto and housing loan portfolio is expected to end the year at P120.8 billion, or 24 percent higher than P97.8 billion in the same period last year.
“One of the main factors of success are from targeted campaigns directed to high-value clients. These personalized campaigns showed positive results in terms of acquisition and bookings, aside from the improved customer experience,” De Villa said.
RCBC said for consumer loan bookings, it expected to end 2023 with P45.4 billion, up by 85 percent from P24.6 billion booked in 2022.
“We are confident to end the year with 85 percent year-on-year growth in our bookings and 24 percent growth in earning assets and NPL [non-performing loan] ratio lower by 210 bps [basis points],” De Villa said.
De Villa said for auto loans, the improvement in the availability of the inventories across all brands and variants triggered the increase in demand.
He said that in housing loans, the upward trend of portfolio coming from overseas Filipino workers continued, with notable increase in demand in north and south Luzon markets.