Rizal Commercial Banking : Investor Presentation (1st Quarter 2024)

1Q 2024

Investor Presentation

May 2024

Disclaimer

ANY INVESTMENT DECISION TO PURCHASE SECURITIES IN THE CONTEXT OF A PROPOSED OFFERING, IF ANY, SHOULD BE MADE ON THE BASIS OF THE FINAL TERMS AND CONDITIONS OF THE SECURITIES AND THE INFORMATION CONTAINED IN THE OFFERING CIRCULAR PUBLISHED IN RELATION TO SUCH AN OFFERING AND NOT ON THE BASIS OF THIS DOCUMENT WHICH DOES NOT CONSTITUTE OR FORM PART OF AN OFFER OR SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES.

The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as

to, and no reliance should be placed on, the information or opinions contained herein. The information set out herein does not purport to be complete, may be subject to revision and may change materially. RCBC is under no obligation to keep current the information contained in this

document and any opinions expressed in it are subject to change without notice. None of RCBC or any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss whatsoever arising from any use of this document or its contents or otherwise arising in connection with this document (whether direct, indirect, consequential or other). The information in this document should not be considered as a recommendation or advice to holding or purchasing securities or any other financial product, and does not take into account your particular investment objectives, needs or financial situation.

This document is highly confidential and is being given solely for your information and for your use and may not be shared, copied, reproduced or redistributed to any other person in any manner.

This document contains "forward-looking statements", which include all statements other than statements of historical facts, including, without

limitation, any statements preceded by, followed by or that include the words "will", "would", "aim", "aimed", "will likely result", "is likely", "are likely", "believe", "expect", "expected to", "will continue", "will achieve", "anticipate", "estimate", "estimating", "intend", "plan", "contemplate", "seek to", "seeking to", "trying to", "target", "propose to", "future", "objective", "goal", "project", "should", "can", "could", "may", "will pursue" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond RCBC's control, that may change at any time, and could cause the actual results, performance or achievements of RCBC to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. Recipients are cautioned not to place substantial or undue reliance on these forward-looking statements. All forward-looking statements included in this presentation are made only as of the date of this

presentation and neither RCBC, the Dealers, nor any of their respective affiliates, agents, advisors or representatives (including directors, officers and

employees) intend or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document as a result of new information, future events or any other factors.

Recipients of this presentation are required to make their own independent investigation and appraisal of the business and financial condition of RCBC, and any tax, legal, accounting and economic considerations relevant to the situation. The Dealers may act as market makers or trade on a principal basis, or have undertaken or may undertake to trade for their own accounts, transactions in the Securities or related instruments of RCBC and may act as underwriter, placement agent, advisor or lender to RCBC. The Dealers and/or their respective employees may hold a position in any Securities mentioned herein. This document contains data sourced from and the views of independent third parties. In replicating such data in this

document, neither RCBC nor the Dealers make any representation, whether express or implied, as to the accuracy of such data. The replication of any

views in this document should not be treated as an indication that RCBC or the Dealers agree with or concurs with such views.

2

Our financial performance at a glance

Accelerating core

business

Building resilience

Enhancing CX via

data & digital

• Total assets jumped on the back of 12% increase in customer loans
• Sustained recovery of NII amid loan growth
• Service fees and commissions up by 44% vs. year ago
• Lower NPL ratio despite loan expansion across all segments
• CAR and CET1 ratio at 16.3% and 13.7%
• Total capital Php 34B or 29.6% higher vs. 1Q2023
• Four digital channels: Pulz App, Boz App, Diskartech and ATMGo
• 51 AI models deployed across the organisation
• 96% first contact resolution rate in 2023

₱2.2B

net income, 32%

increase in NII

3.51%

consolidated

gross NPL ratio

₱8.8M

in gross transaction volume; up 37% YoY

₱631B

in loans; driven by

consumer

13.7%

CET1 ratio

As of March 2024

6,246

ATMGo terminals as of

March 2024

458 branches

7,711 ATMs*

6,427 employees

*includes ATM Go terminals--RCBC's handheld ATM facility that enables banking transactions outside branches and ATMs, and through partner merchants	8

Summary of consolidated financial results

	1Q2024	1Q2023	Change	% Change
INCOME STATEMENT
Gross Income	12,237	12,993	(757)	(5.8%)
Net Interest Income	9,560	7,267	2,293	31.6%
Fee Income	2,046	1,423	515	43.7%
Operating Expenses	7,765	7,195	571	7.9%
Impairment Losses	1,672	1,496	176	11.8%
Net Income	2,202	3,637	(1,435)	(39.5%)
BALANCE SHEET
Assets	1,230,944	1,153,942	77,002	6.7%
Loans¹	630,578	563,431	67,148	11.9%
Investment Securities	398,821	351,259	47,562	13.5%
Deposits	959,360	859,396	99,964	11.6%
Capital	150,836	116,370	34,466	29.6%

*Amounts in PhP Millions, except % and ratios

[1] Loans and Receivables net of Allowances and Interbank Loans

9

Solid core income in the first quarter

Gross Revenue

In Php Billions, except %

▲12%

			▲32%
Net Interest Income			Y-on-Y
In Php Billions, except %			Net Interest Income
	8.9	9.3	9.6

11

Adjusted

Gross Revenue Excluding non-recurringgain on sale of assets

13

3.6

7

Y-on-Y

Gross

Revenue*

12

2.7

10

8.1

7.3

1Q2023

2Q2023

3Q2023

4Q2023

1Q2024

Net Interest Income

Fee Income Breakdown

In Php Millions, except %

1Q2024	52%		28%	7%	13%	2,046
								▲44%
								Y-on-Y
1Q2023	59%	19%	4%	18%	1,423		Fee Income

Mar 23

Mar 24

Net Interest Income Other Income

Debit & Credit Cards		Loans		Investment Banking		Other retail transactions

10

*Excluding non-recurring transactions

Consumer segment leading portfolio growth

Loan Portfolio1		+11% YoY
In Php Billions, except %
622			632
	543	567
512	203			220		+35%
		163			YoY
	158
145
	107	127	112	126		+12%
93			YoY

273	276	291	291	285	-2%
					YoY

Dec-21Dec-22Dec-23Mar-23Mar-24

Corp SME Consumer [2]

1. Total loans include Other Loans of P0.4B as of Mar 2024, and P0.4B as of Mar 2023
2. Consumer refers to Auto, Mortgage, Credit Card and Personal/Salary Loans

Loan Mix

As of March 2024

						PL/SL 1%
Consumer			SME		Corp	Auto
					Housing	21%
	40%	Consumer
	35%	Loans
45%	Card
632B
						Credit
						37%

20%

SME and Consumer segment grew by 12% and 35%, respectively.

In particular, credit cards drove consumer loan growth by 55% followed with auto and housing loans growing 23% and 25%.

11

Maintained healthy asset quality in all segments

Gross NPL amount and ratio

In Php Billions, except %

40.0 5.10%

4.58%		4.04% 3.91% 3.77%		5.00%
35.0	3.83% 3.75%	3.51%	4.00%
		3.34%
30.0
				3.00%
25.0
				2.00%

20.0

1.00%

15.0	28.6										0.00%
		24.8
10.0		22.8	21.4	24.1	24.2	24.4	22.9	23.4
									-1.00%
5.0											-2.00%
-												-3.00%
	1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024
					Gross NPL			Gross NPL Ratio

Gross NPL ratio per segment

As of March 2024

Corporate	1.6%
SME	3.8%
Consumer	4.9%
Credit Card	3.7%

The Bank's data and digital strategies, tightened credit and proactive remedial management paid off, controlled NPLs across loan segments.

12

High growth and yield on SME Loans

Historical SME Loans		▲12%
In Php Billions,		Y-on-Y
		127
		126
	▲14%
	109	112
	CAGR
93

74 79

2019

2020

2021

2022

2023

1Q2023

1Q2024

SME Loans

7.75%

Solid average yield; better than budget

1.4%

net NPL ratio for the segment; better than LY

128%

total deposit to loan ratio for SME

13

Better-than-industry growth in credit cards

P75K

receivables per card, better than industry and higher than year ago

Gross Billings

In Php Billions, MTD

2932

P42B	P81B
in issuing billings; 42%	in balances; 52%
higher compared to	improvement from last
year ago levels	year's level

4342

36

Strong momentum in personal and salary loans

New Personal Loans Volume

760

In Php Millions

145

5x

bookings vs LY

Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24

1Q2023

2Q2023

3Q2023

4Q2023

1Q2024

P370M

in new salary loans volume, 200% increase vs last year

14

NPLs improved amid expansion in consumer loans

Auto & Housing Portfolio

In Php Billions

140

135▲24%

Y-on-Y

130Consumer Loans

Portfolio

125

120

135.2

115

			119.4	126.0
110
105	108.9	112.7
100
1Q 2023	2Q 2023	3Q 2023	4Q 2023	1Q 2024

Auto & Housing

Gross NPL ratio

In %

8.00%

7.50%					235bps
7.00%					better than
				1Q2023
6.50%
6.00%
7.3%
5.50%		6.8%
5.00%			6.2%
				5.4%	4.9%
4.50%
4.00%
1Q 2023	2Q 2023	3Q 2023	4Q 2023	1Q 2024

Gross NPL ratio

15