THE CREDIT CARD arm of Rizal Commercial Banking Corp. (RCBC) expects sustained double-digit growth in loans over the next two years, driven by strong consumer spending amid low inflation and easing interest rates.
RCBC Credit Cards President and Chief Executive Officer Arniel Vincent B. Ong said they expect their cards business to continue growing by about 30-40% until next year.
“We are growing by more than 40% year on year so far. We are growing faster than the industry. My outlook is that by the end of the year, we will continue to be at that range… And we expect that to continue to be faster than the industry,” Mr. Ong said on the sidelines of a recent event.
“Next year, I think with the relatively benign inflation rates, the low interest rates…, I think consumption will continue to grow.”
RCBC’s credit card receivables surged by 48% year on year in 2024 as cards in force increased by 21% and billings rose by 41%.
Inflation eased to a near six-year low of 0.9% in July, which brought the seven-month average of 1.7%, a tad higher than the central bank’s 1.6% forecast for the year but below its 2-4% annual target.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. has said that another rate cut is “quite likely” at the Monetary Board’s Aug. 28 meeting as they expect inflation to remain within target this year.
All 20 analysts in a BusinessWorld poll are penciling in a third straight 25-basis-point (bp) reduction this week to bring the policy rate to 5% from the current 5.25%.
Mr. Remolona also said that the central bank could deliver only two more reductions this year, including this week’s potential easing move.
The BSP has lowered benchmark interest rates by a cumulative 125 bps since August 2024, with the policy rate now at 5.25%.
After this week’s review, the Monetary Board’s remaining meetings for this year are scheduled for Oct. 9 and Dec. 11.
Mr. Ong said the bank is targeting to grow its credit card base to about 1.5 million by yearend, supported by products like its recently launched cobranded product, the AirAsia Platinum credit card.
“For RCBC, it’s really about targeting the right customer base, targeting the right segments. We have been very deliberate in attracting premium or affluent customers,” he said when asked what will drive credit growth this year.
The bank’s digitalization efforts, particularly in its mobile application, can also boost loan demand, he added.
RCBC’s net income jumped by 29.89% year on year to P2.92 billion in the second quarter amid higher net interest earnings.
For the first semester, its net profit climbed by 20.18% to P5.35 billion. — Aubrey Rose A. Inosante
