Rizal Commercial Banking Corporation (RCBC) is entering the second half of 2026 from a position of deliberate strength, while taking proactive steps to protect its balance sheet ahead of a more challenging macroeconomic environment.
Pre-Emptive Actions Across Multiple Fronts
RCBC President and CEO Reginaldo Anthony B. Cariaso said the bank has been taking pre-emptive action on multiple fronts to prepare for a more volatile rate and credit environment. "My objective remains the same – to protect, scale, and elevate the strong franchise that is RCBC," Cariaso said during the bank's 2026 Annual Stockholders' Meeting held on Monday.
The bank systematically reduced the average duration of its investment securities portfolio from 7.3 years in 2021 to 3.5 years as of the first quarter of 2026, providing a structural buffer against the capital impact of projected interest rate hikes.
Credit Portfolio and Collections Overhaul
RCBC also executed sharp credit portfolio actions, decreasing credit lines in high-risk segments and introducing the CARE Program – an analytics-driven collections initiative for auto and housing loan clients designed to engage customers proactively before they hit financial stress.
The bank’s consolidated gross non-performing loan (NPL) ratio stands at 4.8%, with corporate lending – its largest segment – carrying a gross NPL ratio of 2.7%. Consumer NPL remains below industry averages. Cariaso acknowledged near-term pressures on asset quality in its smallest SME segment, which is undergoing an operational overhaul to remediate its NPL.
Funding Strategy Locked in Ahead of Tightening
On the funding side, RCBC locked in favorable rates ahead of the current hawkish cycle through three major capital market issuances: USD 350 million in offshore sustainability notes at 5.375% in January 2025, P12.21 billion in Series F ASEAN Sustainability Bonds in July 2025, and P20.5 billion in Series G bonds at 6.08% in April 2026. These issuances diversified the bank's funding base and structurally lowered its cost of funds ahead of tightening market conditions.
"We are navigating a complex and shifting macroeconomic landscape. However, we have been building up our defenses, locking in strategic wins, and fundamentally reshaping our balance sheet to drive sustainable, high-quality growth," Cariaso added.
