Officials of the Rizal Commercial Banking Corporation (RCBC) seeks to increase the share of consumer and small and medium enterprise (SME) loans to 50 percent of the bank’s total loan portfolio within the next three years.

To date, SME and consumer loans of RCBC account for only about 38 percent of the total while corporate loans has the larger part

In a briefing, Deputy Chief Executive Officer (CEO) Eugene Acevedo said the aim is to lift their ranks among domestic banks by tapping opportunities in the middle-income sector of the society.

He said the bank’s consumer and SME business segments have been posting strong growth in recent years.

In 2018, net loans grew twelve percent year-on-year to PHP398 billion.

SME loans inched up by 28 percent and consumer loans by 17 percent.

Among the consumer loans, mortgage rose 14 percent, auto loans by 13 percent and credit card receivables by 31 percent.

Acevedo said increasing the share of consumer and SME loans is a challenge because the corporate segment is also rising.

“We’re hoping to do it within the next three years but the problem is the corporate loan book is higher. Even if it grows a bit it’s difficult for consumer loans and SME to catch up,” he said.

To address this issue, Acecedo said they will be “fishing from our own fishpond.”

He said they will offer their consumer loan products to employees of their corporate business clients by giving attractive packages.

Also, they will tap the suppliers of their SME loan clients to widen their client base.

The bank executive said they will also improve their digital channels to entice more clients and bring the bank to where it was a few years ago. (PNA)