Interim report
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No Yes CR07759-2025 SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-Q QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER 1. For the quarterly period ended Sep 30, 2025 2. SEC Identification Number 17514 3. BIR Tax Identification No. 000-599-760-000 4. Exact name of issuer as specified in its charter RIZAL COMMERCIAL BANKING CORPORATION 5. Province, country or other jurisdiction of incorporation or organization Philippines 6. Industry Classification Code(SEC Use Only) 7. Address of principal office 6819 Ayala cor. Gil J. Puyat Ave., Makati City Postal Code 0727 8. Issuer's telephone number, including area code 8894-9000 9. Former name or former address, and former fiscal year, if changed since last report Not Applicable 10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Common 2,419,536,530 11. Are any or all of registrant's securities listed on a Stock Exchange? If yes, state the name of such stock exchange and the classes of securities listed therein: The Philippine Stock Exchange, Inc.; Common Shares 12. Indicate by check mark whether the registrant: (a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17 thereunder or Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of the Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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No Yes No Yes Corporation Code of the Philippines, during the preceding twelve (12) months (or for such shorter period that the registrant was required to file such reports) (b) has been subject to such filing requirements for the past ninety (90) days The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party. Rizal Commercial Banking Corporation RCB PSE Disclosure Form 17-2 - Quarterly Report References: SRC Rule 17 and Sections 17.2 and 17.8 of the Revised Disclosure Rules For the period ended Sep 30, 2025 Currency (indicate units, if applicable) PHP (in millions) Balance Sheet Period Ended Fiscal Year Ended (Audited) Sep 30, 2025 Dec 31, 2024 Current Assets 271,680 354,501 Total Assets 1,314,682 1,360,153 Current Liabilities 387,918 330,411 Total Liabilities 1,166,004 1,201,662 Retained Earnings/(Deficit) 70,216 67,480 Stockholders' Equity 148,678 158,491 Stockholders' Equity - Parent 148,672 158,485 Book Value per Share 61 60 Income Statement Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Current Year (3 Months) Previous Year (3 Months) Current Year-To-Date Previous Year-To-Date Gross Revenue 16,381 12,757 46,758 37,767 Gross Expense 12,974 9,917 36,640 28,901 Non-Operating Income - - - - Non-Operating Expense - - - - Income/(Loss) Before Tax 3,407 2,840 10,118 8,866 Income Tax Expense 576 1,075 1,939 2,651 Net Income/(Loss) After Tax 2,831 1,765 8,179 6,215 Net Income Attributable to Parent Equity Holder 2,831 1,765 8,180 6,215 Earnings/(Loss) Per Share (Basic) 1.1 0.59 3.07 2.22 Earnings/(Loss) Per Share (Diluted) 1.1 0.59 3.07 2.22 Current Year (Trailing 12 months) Previous Year (Trailing 12 months) Earnings/(Loss) Per Share (Basic) 4.34 3.42 Earnings/(Loss) Per Share (Diluted) 4.34 3.42 Other Relevant Information - Filed on behalf by: Name Ma. Christina Alvarez Designation Corporate Planning Head and Corporate Information Officer Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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November 12, 2025 Atty. Johanne Daniel M. Negre Head, Disclosure Department The Philippine Stock Exchange, Inc. 6/F PSE Tower 5th Avenue corner 28th Street Bonifacio Global City, Taguig City Dear Atty. Negre, We submit herewith the September 30, 2025 SEC 17-Q report of Rizal Commercial Banking Corporation. Thank you. Very truly yours, Florentino M. Madonza FSVP, Head-Controllership Group cc: Philippine Dealing Exchange Corp. 29th Floor, BDO Equitable Tower 8751 Paseo De Roxas, 1226 Makati City Type text here Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 1 COVER SHEET 1 7 5 1 4 S.E.C. Registration Number R I Z A L C O M M E R C I A L B A N K I N G C O R P O R A T I O N A N D S U B S I D I A R I E S (Company's Full Name) Y U C H E N G C O T O W E R , R C B C P L A Z A, 6 8 1 9 A Y A L A A V E N U E , M A K A T I C I T Y PAUL P. ESGUERRA 8 8 9 4 3 3 5 3 Contact Person Company Telephone Number 0 9 3 0 1 7 Q Month Day FORM TYPE Month Day Fiscal Year Annual Meeting Secondary License Type, If Applicable S E C Dept. Requiring this Doc. Amended Articles Number/Section Total Amount of Borrowings 74 2 Total No. of Stockholders Domestic Foreign To be accomplished by SEC Personnel concerned File Number LCU Document I.D. Cashier S T A M P S Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 2 SEC Number 17514 PSE Code _______ File Number _______ ______________________________________________________ RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIES ______________________________________________________ (Company’s Full Name) Yuchengco Tower, RCBC Plaza 6819 Ayala Avenue, Makati City ______________________________________________________ (Company’s Address) 8894-9000 ______________________________________________________ (Telephone Number) December 31 ______________________________________________________ (Fiscal Year Ending) SEC FORM 17-Q ______________________________________________________ Form Type ______________________________________________________ Amendment Designation (if applicable) September 30, 2025 ______________________________________________________ For the Quarterly Period Ended ______________________________________________________ (Secondary License Type and File Number) Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 3 SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-Q QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER 1. For the quarterly period ended September 30, 2025 2. SEC Identification Number 17514 3. BIR Tax Identification No. 000-599-760-000 4. Exact name of registrant as specified in its charter: RIZAL COMMERCIAL BANKING CORPORATION 5. Philippines 6. Province, Country or other jurisdiction of incorporation or organization 7. Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, Makati City 1200 Address of principal office Postal Code 8. (632) 8894-9000 Registrant’s telephone number, including area code 9. Not applicable Former name, former address & former fiscal year, if changed since last report 10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding Common Stock, P10 par value 2,419,536,530 (September 30, 2025) 11. Are any or all of these securities listed on the Philippine Stock Exchange Yes (x) No ( ) 12. Check whether the registrant: (a) has filed all reports required to be filed by Section 17 of the SRC thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder and Sections 26 and 141 of the Corporation Code of the Philippines during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); Yes (x) No ( ) (b) has been subject to such filing requirements for the past 90 days Yes (x) No ( ) (SEC Use Only) Industry Classification Code: Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 4 TABLE OF CONTENTS Page Number PART I – FINANCIAL INFORMATION Item 1. Financial Statements 5 Item 2. Management’s Discussion and Analysis of 27 Financial Condition and Results of Operations PART II – OTHER INFORMATION SIGNATURES 31 AGING OF ACCOUNTS RECEIVABLES 32 Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 5 Item 1. Financial Statements9/30/202512/31/2024Notes (Unaudited) (Audited) CASH AND OTHER CASH ITEMS 16,095 P 23,003 P DUE FROM BANGKO SENTRAL NG PILIPINAS 62,862 115,230 DUE FROM OTHER BANKS 4,022 14,569 LOANS UNDER REVERSE REPURCHASE AGREEMENT 25,000 - TRADING AND INVESTMENT SECURITIES - Net3 396,829 429,086 LOANS AND RECEIVABLES - Net4 774,722 742,497 INVESTMENTS IN ASSOCIATES5 799 600 BANK PREMISES, FURNITURE, FIXTURES & EQUIPMENT- Net 7,115 8,033 INVESTMENT PROPERTIES - Net 745 695 DEFERRED TAX ASSETS 6,847 6,052 OTHER RESOURCES - Net6 19,646 20,388 TOTAL RESOURCES 1,314,682 P 1,360,153 P DEPOSIT LIABILITIES7 996,964 P 1,022,794 P BILLS PAYABLE871,447 86,616 BONDS PAYABLE959,897 26,935 10,781 11,667 OTHER LIABILITIES1026,915 53,650 Total Liabilities1,166,004 1,201,662 EQUITYAttributable to Parent Company Shareholders:Preferred Stock11 3 P 3 P Common Stock11 24,195 24,195 Hybrid Perpetual Securities11 - 14,463 Capital Paid in Excess of Par 58,228 58,228 Other Comprehensive Income:1,394 )( 3,306 )( Cumulative Translation Adjustment 60 60 Retirement plan2,550 )( 2,552 )( Other Reserves86 )( 86 )( Retained Earnings Appropriated for General Provision 6,708 5,564 Retained Earnings 63,508 61,916 148,672 158,485 Non-controlling Interest 6 6 Total Equity 148,678 158,491 TOTAL LIABILITIES AND CAPITAL FUNDS 1,314,682 P 1,360,153 P ACCRUED TAXES, INTEREST AND OTHER EXPENSESNet Unrealized Losses on Financial Assets At Fair Value Through Other Comprehensive Income PART I - FINANCIAL INFORMATION See Notes to Interim Condensed Financial Statements. RESOURCESLIABILITIES AND EQUITY RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION(Amounts in Millions of Philippine Pesos) Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 6 1/1/2025 to1/1/2024 to7/1/2025 to7/1/2024 to9/30/20259/30/20249/30/20259/30/2024Note (Unaudited) (Unaudited) (Unaudited) (Unaudited) INTEREST INCOME ONLoans and receivables 51,808 P 44,804 P 17,711 P 15,944 P Investment securities 11,287 12,093 3,660 4,005 Others 853 1,620 297 384 - 63,948 58,517 21,668 20,333 INTEREST EXPENSE ONDeposit liabilities 18,239 23,443 5,438 7,509 Bills payable and other borrowings 4,868 4,142 1,730 1,641 - 23,107 27,585 7,168 9,150 - NET INTEREST INCOME 40,841 30,932 14,500 11,183 - IMPAIRMENT LOSSES - Net 10,657 5,612 4,178 2,006 - 30,184 25,320 10,322 9,177 OTHER OPERATING INCOMEService fees and commissions 7,841 6,275 2,457 2,339 Gain on assets sold - net 711 920 73 188 Trading and securities gains - net 327 515 43 533 Foreign exchange losses - net4,119 )( 2,063 )( 1,013 )( 1,844 )( Miscellaneous12 1,157 1,188 321 358 - 5,917 6,835 1,881 1,574 OTHER OPERATING EXPENSESEmployee benefits 6,779 6,114 2,336 2,133 Taxes and licenses 4,412 4,671 1,393 1,557 Occupancy and equipment-related 3,250 2,815 1,106 927 Depreciation and amortization 2,691 2,505 925 858 Miscellaneous12 8,851 7,184 3,036 2,436 0 25,983 23,289 8,796 7,911 - PROFIT BEFORE TAX 10,118 8,866 3,407 2,840 - TAX EXPENSE 1,939 2,651 576 1,075 - NET PROFIT 8,179 6,215 2,831 1,765 INTEREST 1 )( - - - NET PROFIT ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS 8,180 P 6,215 P 2,831 P 1,765 P Earnings Per Share (Annualized)Basic 4.21 P 2.97 P Diluted 4.21 P 2.97 P RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIESSTATEMENTS OF INCOME(Amounts in Millions of Philippine Pesos, Except Per Share Data)NET INTEREST INCOME AFTER IMPAIRMENT LOSSESNET LOSS ATTRIBUTABLE TO NON-See Notes to Interim Condensed Financial Statements. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 7 1/1/2025 to1/1/2024 to9/30/20259/30/2024 (Unaudited) (Unaudited) NET PROFIT FOR THE PERIOD 8,179 P 6,215 P OTHER COMPREHENSIVE INCOME DURING THE PERIOD:Fair value gains on Financial assets at Other Comprehensive Income 1,912 3,150 Actuarial gains on defined benefit plan 2 5 Translation adjustments on foreign operations - 6 Other Comprehensive Income for the period 1,914 3,161 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 10,093 P 9,376 P TO NON-CONTROLLING INTEREST 1 - COMPREHENSIVE INCOME ATTRIBUTABLE TO PARENT COMPANY'S SHAREHOLDERS 10,092 P 9,376 P See Notes to Interim Condensed Financial Statements. RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME(Amounts in Millions of Philippine Pesos)COMPREHENSIVE INCOME ATTRIBUTABLE Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 8 1/1/2025 to1/1/2024 to9/30/20259/30/2024 (Unaudited) (Unaudited) ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERSPREFERRED STOCKBalance at beginning and end of period 3 P 3 P COMMON STOCKBalance at beginning and end of period 24,195 24,195 HYBRID PERPETUAL SECURITIESBalance, beginning 14,463 14,463 Redemption during the period14,463 )( - Balance, end - 14,463 CAPITAL PAID IN EXCESS OF PARBalance at beginning and end of period 58,228 58,228 Beginning balance3,306 )( 3,168 )( Fair value gains during the period 1,912 3,150 Balance, end1,394 )( 18 )( CUMULATIVE TRANSLATION ADJUSTMENTSBalance, beginning 60 54 Translation adjustment during the period - 6 Balance, end 60 60 OTHER COMPREHENSIVE LOSS - RETIREMENT PLANBalance, beginning2,552 )( 2,930 )( Remeasurement of the defined benefits during the period 2 5 Balance, end2,550 )( 2,925 )( RESERVE FOR TRUST BUSINESSBalance, beginning - 551 Transfer to retained earnings - free - 551 )( Balance, end - - OTHER RESERVESBalance at beginning and end of period86 )( 86 )( RETAINED EARNINGS APPROPRIATED FORGENERAL PROVISIONBeginning balance 5,564 4,599 Transfer from retained earnings - free 1,144 518 Balance, end 6,708 5,117 RETAINED EARNINGSBeginning balance 61,916 56,360 Net profit 8,180 6,215 Cash dividends on c ommon shares1,694 )( 2,453 )( Dividends on Hybrid Capital Securities1,121 )( 1,122 )( Redemption of Hybrid Perpetual Securities2,667 )( - Transfer of fair value reserves on FVOCI 38 22 Transfer to retained earnings appropriated for general provision1,144 )( 518 )( Transfer from reserves for trust business - 551 Balance, end 63,508 59,055 ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS 148,672 P 158,092 P NON-CONTROLLING INTERESTBalance, beginning 6 6 Fair value gains on FVOCI 1 - Net Loss for the year1 )( - Balance, end 6 6 TOTAL EQUITY 148,678 P 158,098 P RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIESSTATEMENTS OF CHANGES IN EQUITY(Amounts in Millions of Philippine Pesos)NET UNREALIZED LOSSES ON FINANCIAL ASSETS AT OTHER COMPREHENSIVE INCOME See Notes to Interim Condensed Financial Statements. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 9 1/1/2025 to1/1/2024 to9/30/20259/30/2024(Unaudited)(Unaudited)CASH FLOWS FROM OPERATING ACTIVITIESProfits before tax 10,118 P 8,866 P Adjustments for:Interest income63,948 )( 58,517 )( Interest expense 23,107 27,585 Gain on assets sold711 )( 920 )( Impairment losses 10,657 5,612 Depreciation and amortization 2,691 2,505 Dividend income315 )( 310 )( Share in net earnings of associates176 )( 53 )( Operating loss before working capital changes18,577 )( 15,232 )( Increase in financial assets at fair value through profit and loss5,773 )( 2,106 )( Increase in loans and receivables59,137 )( 64,409 )( Increase in investment property50 )( 99 )( Increase in other resources1,536 )( 2,958 )( Increase (Decrease) in deposit liabilities25,830 )( 33,728 Decrease in accrued taxes, interest and other expenses77 )( 821 )( Increase (Decrease) in other liabilities25,843 )( 9,880 Cash used in operations136,823 )( 42,017 )( Interest received 64,632 58,758 Interest paid23,975 )( 28,568 )( Cash paid for taxes2,689 )( 2,974 )( Net Cash Used in Operating Activities98,855 )( 14,801 )( CASH FLOWS FROM INVESTING ACTIVITIESDecrease (increase) in Financial Assets at FVOCI 33,562 41,397 )( Decrease (increase) in Investment securities at amortized cost 6,341 20,727 )( Acquisitions of bank premises, furniture, fixtures and equipment -net379 )( 469 )( Cash dividends received 315 310 Acquisitions of intangibles369 )( 396 )( Net Cash From (Used in) Investing Activities 39,470 62,679 )( CASH FLOWS FROM FINANCING ACTIVITIESNet proceeds (payments) of bills payable15,169 )( 8,295 Redemption of Hybrid Perpetual Securities17,130 )( - Dividends paid2,815 )( 3,575 )( Net proceeds (payments) of bonds payable 32,962 8,361 )( Net Cash Used in Financing Activities2,152 )( 3,641 )( NET DECREASE IN CASH AND CASH EQUIVALENTS61,537 )( 81,121 )( CASH AND CASH EQUIVALENTS, BEGINNINGCash and other cash items 23,003 19,875 Due from Bangko Sentral ng Pilipinas 115,230 151,762 Due from other banks 14,569 14,892 Interbank Loans and Loans and Receivables under reverse repurchase agreement 32,567 63,579 185,369 250,108 CASH AND CASH EQUIVALENTS, ENDCash and other cash items 16,095 14,560 Due from Bangko Sentral ng Pilipinas 62,862 99,003 Due from other banks 4,022 8,501 Interbank Loans and Loans and Receivables under reverse repurchase agreement 40,853 46,923 123,832 168,987 See Notes to Interim Condensed Financial Statements. RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIES STATEMENTS OF CASH FLOWS(Amounts in Millions of Philippine Pesos) Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 10 RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIES NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (Amounts in Millions of Philippine Pesos, Except Otherwise Indicated) 1. CORPORATE MATTERS 1.1 Incorporation and Operations Rizal Commercial Banking Corporation (the Parent Company, the Bank or RCBC), a universal bank engaged in all aspects of banking, was originally incorporated on September 23, 1960. The Bank has been granted with perpetual existence by the Securities and Exchange Commission (SEC) on September 30, 2022. It provides products and services related to traditional loans and deposits, trade finance, domestic and foreign fund transfers or remittance, cash management and treasury. It also enters into forward currency contracts as an accommodation to its clients and as a means of managing its foreign exchange exposures. The Parent Company and its subsidiaries (together hereinafter referred to as the Group) are engaged in all aspects of traditional banking, investment banking, retail financing (credit cards, auto loans, mortgage/housing and microfinance loans), remittance, leasing and stock brokering. As a banking institution, the Group’s operations are regulated and supervised by the Bangko Sentral ng Pilipinas (BSP). As such, the Group is required to comply with banking rules and regulations such as those relating to maintenance of reserve requirements on deposit liabilities and deposit substitutes and those relating to the adoption and use of safe and sound banking practices, among others, as promulgated by the BSP. The Group’s activities are subject to the provisions of Republic Act (RA) No. 8791, the General Banking Law of 2000, and other related banking laws. The Parent Company’s common shares are listed in the Philippine Stock Exchange (PSE). RCBC is a 33.92%-owned subsidiary of Pan Malayan Management and Investment Corporation (PMMIC or Ultimate Parent), a company incorporated and domiciled in the Philippines. PMMIC is the holding company of the flagship institutions of the Yuchengco Group of Companies (YGC), with registered business address at 48th Floor, Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue cor. Sen. Gil Puyat Avenue, Makati City. As of September 30, 2025, Cathay Life Insurance Corporation (Cathay) and Sumitomo Mitsui Banking Corporation (SMBC) also own 18.68% and 20.00% interest in RCBC, respectively. The condensed consolidated interim financial statements of the Group as of and for the nine months ended September 30, 2025 (including the comparatives for the nine months ended September 30, 2024) and the year ended December 31, 2024 were presented to and reviewed by the Bank's Audit and Compliance Committee. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies that have been used in the preparation of these financial statements are summarized in the succeeding pages. The policies have been consistently applied to all the periods presented, unless otherwise stated. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 11 2.1 Basis of Preparation of Financial Statements (a) Statement of Compliance with Philippine Financial Reporting Standards The interim financial statements of the Bank have been prepared in accordance with Philippine Financial Reporting Standards (PFRS). There were no changes in the accounting policies and methods of computation followed in the interim financial statements as compared with the most recent annual financial statements. (b) Presentation of Financial Statements The financial statements are presented in accordance with Philippine Accounting Standards (PAS) 1, Presentation of Financial Statements. The Group presents its statement of financial position broadly in order of liquidity and presents all items of income and expenses in two statements: a “statement of profit or loss” and a “statement of comprehensive income.” (c) Functional and Presentation Currency These financial statements are presented in Philippine pesos, the Group’s functional and presentation currency. All amounts are in millions, except per share data or when otherwise indicated. 2.2 Basis of Consolidation and Accounting for Investments in Subsidiaries and Associates in the Separate Financial Statements The Group’s consolidated financial statements comprise the accounts of the Parent Company and its subsidiaries, after the elimination of material intercompany transactions. All intercompany resources and liabilities, equity, income, expenses and cash flows relating to transactions with subsidiaries are eliminated in full. Unrealized profits and losses from intercompany transactions that are recognized in assets are also eliminated in full. Intercompany losses that indicate impairment are recognized in the consolidated financial statements. 2.3 Financial Assets Financial assets are recognized when the Group becomes a party to the contractual terms of the financial instrument. For purposes of classifying financial assets, an instrument is considered as an equity instrument if it is non-derivative and meets the definition of equity for the issuer in accordance with the criteria under PAS 32, Financial Instruments: Presentation. All other non-derivative financial instruments are treated as debt instruments. (a) Classification, Measurement and Reclassification of Financial Assets Under PFRS 9, Financial Instruments, the classification and measurement of financial assets is driven by the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The classification and measurement of financial assets are described in the succeeding paragraphs. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 12 (i) Financial Assets at Amortized Cost Financial assets are measured at amortized cost if both of the following conditions are met: the asset is held within the Group’s business model whose objective is to hold fi- nancial assets in order to collect contractual cash flows; and, the contractual terms of the instrument give rise, on specified dates, to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. Financial assets meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured at amortized cost using the effective interest method, less any impairment in value. (ii) Financial Assets at Fair Value Through Profit or Loss (FVPL) The Group classifies financial assets as FVPL when they have been purchased or issued primarily for short-term profit making through trading activities or form part of a portfolio of financial instruments that are managed together, for which there is evidence of a recent pattern of short-term profit taking. Debt instruments that do not meet the amortized cost criteria, or that meet the criteria but the Group has chosen to designate as at FVPL at initial recognition, are measured at FVPL. Equity investments are classified as financial assets at FVPL, unless the Group designates an equity investment that is not held for trading as at Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI) at initial recognition. The Group’s financial assets at FVPL include government securities, corporate bonds, equity securities, which are held for trading purposes or designated as at FVPL. Financial assets at FVPL are initially measured at fair value and transaction costs are expensed in profit or loss. Unrealized gains and losses arising from changes (mark-to-market) in the fair value of the financial assets at FVPL category and realized gains or losses arising from disposals of these instruments are included in Trading and Securities Gains under Other Operating Income account in the statement of profit or loss. (iii) Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI) Debt Instruments at FVOCI The Group classifies debt instruments under FVOCI when both of the following conditions are met: the asset is held within the Group’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and, the contractual terms of the instrument give rise, on specified dates, to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. FVOCI debt securities are initially measured at fair value plus transaction costs. They are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in Other Comprehensive Income (OCI). Interest Income and foreign exchange gains and losses are recognized in profit or loss in the same manner as for financial assets measured at amortized cost. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 13 On derecognition, cumulative gains or losses previously recognized in OCI are reclassified to profit or loss. Equity Instruments at FVOCI At initial recognition, the Group can make an irrevocable election (on an instrument- by-instrument basis) to designate equity investments as at FVOCI; however, such designation is not permitted if the equity investment is held by the Group for trading. The Group has designated certain equity instruments as at FVOCI on initial application of PFRS 9. Financial assets at FVOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value, with no deduction for any disposal costs. Gains and losses arising from changes in fair value, including the foreign exchange component, are recognized in other comprehensive income, net of any effects arising from income taxes, and are reported as part of Revaluation Reserves account in equity. When the asset is disposed of, the cumulative gain or loss previously recognized in the Revaluation Reserves account is not reclassified to profit or loss, but is reclassified directly to Surplus account. (b) Hedge Accounting At the inception of the hedging relationships, the Group formally designates and documents the hedging relationship. This documentation includes the risk management objective and strategy for undertaking the hedge, the identification of the hedging instrument and the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements at inception and on an ongoing basis (including the analysis of sources of hedge ineffectiveness and how the hedge ratio for the hedging relationships is determined). Under a fair value hedge, the subsequent change in the fair value of the hedging instrument is recognized in the statement of profit or loss. The change in the fair value of the hedged item, attributable to the risk being hedged, is recorded as part of the carrying value of the hedged item and is also recognized in the statement of profit or loss. Under a cash flow hedge, changes in the fair value of the hedging instrument are initially recognized in other comprehensive income for the effective portion of the hedge while the ineffective portion is recognized in profit or loss. The amount recognized in other comprehensive shall be the lower of (a) cumulative gain or loss on the hedging instrument from inception of hedge, or (b) cumulative change in FV of the expected cash flows on the hedged item. (c) Impairment of Financial Assets The Group’s ECL model follows a three-stage impairment approach, which guide in the determination of the loss allowance to be recognized in the financial statements. (i) Stage 1 – comprises of all credit exposures that are considered ‘performing’ and with no observed SICR since initial recognition. These include those financial instru- ments with low credit risk. For these financial instruments, the loss allowance is de- termined based on a 12-month ECL. PFRS 9 provides a rebuttable presumption that credit risk is considered to have significantly increased since initial recognition if the contractual payment is more than 30 days past due. The rebuttal must be in consideration of a reasonable and supportable information that is available without undue cost or effort. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 14 (ii) Stage 2 – comprises of all financial instruments assessed to have SICR since initial recognition based on the Group’s quantitative and qualitative criteria, though not yet deemed to be credit-impaired. Using the Group’s ICRRS, Stage 2 includes credit exposures that are considered ‘under-performing’ in which risk ratings were down- graded by at least three notches and/or downgraded to CCC+ to Especially Men- tioned. Stage 2 financial instruments may also include those facilities where the credit risk has improved and have been reclassified from Stage 3 subject to the Group’s observation period on the creditworthiness of the counterparty. A lifetime ECL is recognized for these financial instruments. (iii) Stage 3 – comprises credit exposures which are assessed as ‘credit-impaired’, thus considered by the Group as ‘non-performing’, which is assessed consistently with the Group’s definition of default. Generally, this includes accounts classified as Substandard, Doubtful and Loss. The Group recognizes a lifetime ECL for all credit-impaired financial assets. ECL is a function of the probability of default (PD), loss-given default (LGD), and exposure-at-default (EAD), with the timing of the loss also considered, and is estimated by incorporating forward-looking economic information and through the use of experienced credit judgement. The Group calculates ECL either on an individual or a collective basis. For consumer loans which were carried out on a collective basis, the financial instruments are grouped on the basis of shared credit risk characteristics, such as but not limited to instrument type, credit risk rating, collateral type, product type, historical net charge-offs, industry type, and geographical locations of the borrowers or counterparties. The Group calculates ECL for corporate loans, finance lease receivables, and investment securities at amortized cost on an individual basis. The Group applies a simplified ECL approach for its accounts receivables and other risk assets wherein the Group uses a provision matrix that considers historical changes in the behavior of the portfolio of credit exposures based on internally collected data to predict conditions over the span of a given observation period. These receivables include claims from various counterparties, which are not originated through the Group’s lending activities. For these instruments, the Group measures the loss allowance at an amount equal to lifetime ECL. The Group recognizes an impairment loss in profit or loss for all financial instruments subjected to ECL impairment assessment with a corresponding adjustment to their carrying amount through a loss allowance account. With respect to investments in debt securities that are measured at FVOCI, the related loss allowance account is recognized in other comprehensive income and accumulated in the Revaluation Reserves account, and does not reduce the carrying amount of the financial asset in the statement of financial position. For loan commitments, the loss allowance is recognized as provisions (presented and included as part of Other Liabilities account in the statement of financial position). Where a financial instrument includes a drawn and undrawn component, and the Group cannot identify the ECL on the loan commitment component separately from those on the drawn commitment; the Group presents a combined allowance for ECL for both components. The combined amount is presented as a deduction from the gross carrying amount of the drawn component. Any excess of the loss allowance over the gross amount of the drawn component is presented as provisions. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 15 If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. c.1 Impact of COVID-19 on Measurement of ECL In response to the post-pandemic landscape and the economic effects on the Group, there has been a reassessment and adjustment of the key conditions and assumptions used in calculating ECL. The Group has reviewed economic scenarios and forward-looking macroeconomic assumptions that underpin the ECL calculation. Given the economic recovery in the Philippines post-pandemic, the impact of COVID-19 on the historical data of the Bank has been excluded, as default rates during the pandemic were unusually high. In 2024, the Bank made post model adjustments on the ECL models arising from the use of credit analytics and credit judgments, to consider the effects of the following: more granular level of segmentation of credit exposures for auto loans and credit cards based on customer segment, payment behavior, and credit score, among others; the respective collection behaviors on auto loan accounts and credit card receivables considering accounts that do not flow to further delinquencies, and accounts previous- ly provided with 100% LGD but had subsequent recoveries; and account updates for specific corporate borrowers arising from regular credit monitor- ing activities 2.4 Financial Liabilities Financial liabilities which include deposit liabilities, bills payable, bonds payable, accrued interest and other expenses, and other liabilities (except tax-related payables, post- employment defined benefit obligation and deferred income) are recognized when the Group becomes a party to the contractual terms of the instrument. Financial liabilities are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method, for those with maturities beyond one year, less settlement payments. All interest-related charges incurred on financial liabilities are recognized as an expense in the statement of profit or loss under the caption Interest Expense. 2.5 Provisions and Contingencies Provisions are recognized when present obligations will probably lead to an outflow of economic resources and they can be estimated reliably even if the timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive obligation that has resulted from past events (e.g., legal dispute or onerous contracts). 2.6 Revenue and Expense Recognition Revenue is recognized to the extent that the revenue can be reliably measured; it is probable that the economic benefits will flow to the Group; and the costs incurred or to be incurred can be measured reliably. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 16 2.7 Impairment of Non-financial Assets For purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows [cash-generating units (CGU)]. As a result, some assets are tested for impairment either individually or at the CGU level. Impairment loss is recognized in profit or loss for the amount by which the asset’s or CGU’s carrying amount exceeds its recoverable amount which is the higher of its fair value less costs to sell and its value in use. In determining value in use, management estimates the expected future cash flows from each CGU and determines the suitable interest rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Group’s latest approved budget, adjusted as necessary to exclude the effects of asset enhancements. Discount factors are determined individually for each CGU and reflect management’s assessment of respective risk profiles, such as market and asset-specific risk factors. All assets, except for intangible assets with indefinite useful life and goodwill, are subsequently reassessed for indications that an impairment loss previously recognized may no longer exist. An impairment loss is reversed if the asset’s or CGU’s recoverable amount exceeds its carrying amount. 2.8 Income Taxes Tax expense recognized in profit or loss comprises the sum of current tax and deferred tax not recognized in other comprehensive income or directly in equity, if any. Current tax assets or liabilities comprise those claims from, or obligations to, tax authorities relating to the current or prior reporting period, that are unpaid at the end of the reporting period. They are calculated according to the tax rates and tax laws applicable to the periods to which they relate, based on the taxable profit for the year. All changes to current tax assets or liabilities are recognized as a component of tax expense in the statement of profit or loss. Deferred tax is provided using the liability method, on temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Under the liability method, with certain exceptions, deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences and the carry- forward of unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deferred tax assets can be utilized. Deferred tax assets are reassessed at the end of each reporting period. Previously unrecognized deferred tax assets are recognized to the extent that it has become probable that future taxable profit will be available to allow such deferred tax assets to be recovered. 2.9 Related Party Relationships and Transactions Related party transactions are transfers of resources, services or obligations between the Group and its related parties, regardless of whether a price is charged. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions. These parties include: (a) individuals owning, directly or indirectly through one or more intermediaries, control or are controlled by, or under common control with the Group; (b) associates; (c) individuals owning, directly or indirectly, an interest in the voting power of the Group that gives them significant influence over the Group and close members of the family Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 17 of any such individual; and, (d) the funded retirement plan of each of the entities under the Group. 2.10 Events After the End of the Reporting Period Any event that provides additional information about the Group’s financial position at the end of the reporting period (adjusting event) is reflected in the financial statements. Post- reporting events that are not adjusting events, if any, are disclosed when material to the financial statements. 3. TRADING AND INVESTMENT SECURITIES This account is composed of the following: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Financial assets at FVPL P 16,007 P 10,234 Financial assets at FVOCI 126,941 158,630 Investment securities at amortized cost - net 253,881 260,222 P 396,829 P 429,086 3.1 Financial Assets at FVPL This account is composed of the following: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Government securities P 10,686 P 7,257 Derivative financial assets 4,542 2,067 Equity securities 668 778 Corporate debt securities 111 132 P 16,007 P 10,234 Derivative instruments used by the Group include foreign currency short-term forwards, cross- currency swaps, debt warrants and options. The Group enters into derivative contracts mainly to cover hedging of currency risk, liquidity management and funding, and arbitrage and market positioning strategies. These instruments offer opportunities for market participants to manage interest rates or currency pricing between markets thereby optimizing the Bank’s funding costs and enhancing returns. Foreign currency forwards represent commitments to purchase/sell on a future date at a specific exchange rate. Foreign currency short-term swaps are simultaneous foreign currency spot and forward deals with tenor of one year. Debt warrants attached to the bonds and other debt securities allows the Group to purchase additional debt securities from the same contracting issuer at the same price and yield as the initial purchased security. Option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 18 3.2 Financial Assets at FVOCI This account is composed of the following: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Government bonds P 108,005 P 140,397 Corporate debt securities 14,758 14,091 Unquoted equity securities 2,804 2,591 Quoted equity securities 1,374 1,551 P 126,941 P 158,630 3.3 Investments at Amortized Cost This account is composed of the following: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Government securities P 228,013 P 230,302 Corporate debt securities 25,998 30,042 254,011 260,344 Allowance for impairment ( 130 ) ( 122 ) P 253,881 P 260,222 4. LOANS AND RECEIVABLES This account consists of the following: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Receivable from customers: Loans and discounts P 609,636 P 578,646 Credit card receivables 135,616 110,453 Customers’ liabilities on acceptances, import bills and trust receipts 15,698 16,535 Bills purchased 1,553 2,786 Lease contract receivable 2,510 2,700 Receivables financed 91 98 765,104 711,218 Unearned discount ( 659 ) ( 584 ) 764,445 710,634 Other receivables: Interbank loans receivables 15,853 32,567 Accrued interest receivable 9,573 10,258 Accounts receivable 7,114 6,627 Sales contract receivable 1,816 2,541 Unquoted debt securities classified as loans 161 - 34,517 51,993 798,962 762,627 Allowance for impairment ( 24,240 ) ( 20,130 ) P 774,722 P 742,497 Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 19 5. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 5. 1 Spin-off of the RCBC Trust Operations to a Stand-Alone Trust Corporation With the endorsement of the Bank’s Trust Committee, on November 28, 2022, the Bank’s Board of Directors (BOD) approved the spin-off of the trust operations from RCBC into a separate corporate entity by establishing a Stand-Alone Trust Corporation in accordance with the Manual of Regulations for Non-Bank Financing Institutions. The Bank’s BOD approved its capital infusion equivalent to 40% of the required capital under the capital build-up plan. On March 27, 2023, the Bank’s BOD approved the incorporation of the RCBC Trust Corporation (RCBC Trust). RCBC Trust was officially incorporated on June 29, 2023, while its application of Trust License from BSP – Stage 3 was approved on October 10, 2023. RCBC Trust started operations on January 2, 2024. On the same day, RCBC Trust received net assets from the Bank amounting to P128 and assumed assets under management valued at P155,703 from the Bank. These trust department accounts are maintained in separate books and records in accordance with the Financial Reporting Package for Trust Institutions (FRPTI) prescribed by the BSP. 5.2 Donation of RCBC shares in JPL On April 8, 2024, the Parent Bank’s Retirement Plan executed a Deed of Donation and Acceptance where the Bank donated and transferred ownership of 36,612,373 Preferred C shares representing 19.41% of the outstanding capital of RCBC-JPL Holding Corporation (JPL). Subsequent to the donation, RCBC's ownership over JPL is now at 80%. 5.3 Liquidation of RCBC Telemoney Europe On April 29, 2024, RCBC Telemoney Europe received the final regulatory approval for its liquidation. Following such approval, RCBC Telemoney's balances were deconsolidated from the Group. 6. OTHER RESOURCES This account consists of the following: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Creditable withholding taxes P 4,748 P 4,512 Assets held-for-sale and disposal group 4,094 3,910 Net defined benefit asset 2,455 2,745 Prepaid expenses 2,333 1,762 Software – net 1,191 1,248 Deferred charges 1,181 949 Branch licenses 1,000 1,000 Refundable and other deposits 825 1,198 Unused stationery and supplies 578 646 Goodwill 426 426 Returned checks and other cash items 259 235 Margin deposits 244 214 Other assets held in trust 124 576 Miscellaneous 395 1,452 19,853 20,873 Allowance for impairment ( 207 ) ( 485 ) P 19,646 P 20,388 Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 20 7. DEPOSIT LIABILITIES The following is the breakdown of deposit liabilities: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Demand P 216,374 P 224,988 Savings 285,632 313,478 Time 494,958 484,328 P 996,964 P 1,022,794 8. BILLS PAYABLE This account consists of borrowings from: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Foreign banks P 54,744 P 79,466 Local banks 16,653 7,150 Others 50 - P 71,447 P 86,616 9. BONDS PAYABLE The composition of this account for the Group and the Parent Company follows: Outstanding Balance September 30, December 31, Coupon 2025 2024 Issuance Date Maturity Date Interest Face Value (Unaudited) (Audited) July 17, 2025 January 17, 2028 6.00% P 12,213 P 12,213 P - January 28, 2025 January 29, 2030 5.38% $ 350 20,238 - January 7, 2024 January 18, 2029 5.50% $ 400 23,316 22,805 March 31, 2021 June 30, 2026 4.18% P 4,130 4,130 4,130 P 59,897 P 26,935 On July 17, 2025, the Bank raised P12.2 billion fixed rate peso-denominated Series F ASEAN Sustainability Bonds (the Bonds) due 2028 from its P200 billion Bond and Commercial Paper Programme. The Bonds carry a coupon rate of 6.00% per annum. On January 22, 2025, the Group issued a USD350 5-year and 1-day Senior Unsecured Fixed Rate Sustainability Bonds via a drawdown under its USD4,000 Medium Term Note Program. The net proceeds from the issue of the Notes will be applied by the Group to support and finance its loans to customers or its own operating activities in eligible green and social categories as defined in the Group’s Sustainable Finance Framework. Out of the USD350 senior notes issued on January 22, 2025, USD115 are designated as liability under fair value hedge accounting. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 21 On January 7, 2024, the Group issued a USD400 5-year Senior Unsecured Fixed Rate Sustainability Bonds via a drawdown under its USD3,000 Medium Term Note Program. Out of the USD400 senior notes issued on January 7, 2024, USD200 are designated as liability under fair value hedge accounting. As of September 30, 2025, the Group has six outstanding interest rate swaps designated as fair value hedges of the interest rate risk arising from the Group’s USD350 and USD400 fixed rate bonds payable. 10. OTHER LIABILITIES Other liabilities consist of the following: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Accounts payable P 10,204 P 35,080 Lease liabilities 4,305 5,342 Derivative financial liabilities 1,885 3,635 Manager’s checks 2,805 2,147 Bills purchased – contra 1,008 1,868 Withholding taxes payable 1,017 1,107 Unearned income 1,003 730 Unclaimed balances - deposit 1,055 900 Deposits on lease contracts 590 596 Expected credit loss provisions on loan commitments 455 370 Sundry credits 454 403 Other credits 427 400 Outstanding acceptances payable 410 116 Guaranty deposits 264 204 Payment orders payable 183 130 Miscellaneous 850 622 P 26,915 P 53,650 11. EQUITY The movements in the outstanding capital stock are as follows: Number of Shares* September 30, 2025 December 31, 2024 (Unaudited) (Audited) Preferred stock – voting, non-cumulative non-redeemable, participating convertible into common stock – P10 par value Authorized – 200,000,000 shares Balance at beginning of period 266,194 267,410 Conversion of shares ( 866) ( 1,216) Balance at the end of the period 265,328 266,194 Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 22 Number of Shares* September 30, 2025 December 31, 2024 (Unaudited) (Audited) Common stock – P10 par value Authorized – 2,600,000,000 shares Balance at beginning of period 2,419,536,359 2,419,536,120 Conversion of shares 171 239 Balance at the end of the period 2,419,536,530 2,419,536,359 *Amounts in absolute number of shares 11.1 Hybrid Perpetual Securities On August 27, 2020, the Parent Company issued US$300 non-cumulative, unsecured, subordinated capital securities which qualify as AT1 capital under Basel III standards. The capital securities are perpetual in respect of which there is no fixed redemption date. The Parent Company may redeem the capital securities only in certain circumstances as described in the conditions of the securities and with prior written consent of BSP. Distributions are non- cumulative and payable semi-annually in arrear at a rate of 6.5%. Certain conditions provide for circumstances under which the Parent Company will not be obliged to pay any distribution on the applicable payment date. The proceeds of the hybrid perpetual securities are used to support and finance medium-term to long-term asset growth, loans to customers, other general corporate purposes and to maintain sufficient buffers above the minimum capital thresholds required by BSP. The BOD, in its regular meeting held on March 31, 2025, approved the redemption of all and not less than all of the Bank‘s AT1 capital callable beginning August 27, 2025 pursuant to its exercise of the "Redemption at the option of the Issuer". In accordance with the BSP’s approval and the terms and conditions of the AT1 capital, the hybrid perpetual securities were fully redeemed on August 27, 2025. 12. MISCELLANEOUS INCOME AND EXPENSES These accounts consist of the following: 12.1 Miscellaneous Income For the Nine months Ended September 30, 2025 September 30, 2024 (Unaudited) (Unaudited) Recoveries from written off assets P 411 P 498 Dividend income 315 310 Share in net earnings of associates 176 53 Rentals 144 212 Others 111 115 P 1,157 P 1,188 Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 23 12.2 Miscellaneous Expenses For the Nine months Ended September 30, 2025 September 30, 2024 (Unaudited) (Unaudited) Credit card related expenses P 2,404 P 1,772 Insurance 1,552 1,556 Service processing fees 1,048 890 Litigation/asset acquired expenses 652 566 Advertising and publicity 557 474 Management and other professional fees 554 395 Communication and information 530 485 Banking fees 292 120 Stationery and office supplies 165 136 Transportation and travel 159 99 Other outside services 135 117 Donations and charitable contributions 102 88 Shipment and freight 50 49 Others 651 437 P 8,851 P 7,184 13. COMMITMENTS AND CONTINGENCIES In the normal course of operations of the Group, there are various outstanding commitments and contingent liabilities such as guarantees, commitments to extend credit, tax assessments, etc., with amounts not reflected in the financial statements. Management does not anticipate losses from these transactions that will adversely affect the Group’s operations. In the opinion of management, the suits and claims arising from the normal course of operations of the Group that remain unsettled, if decided adversely, will not involve sums that would have material effect on the Group’s financial position or operating results. 13.1 Contingent Accounts, Guarantees and Other Commitments The following is a summary of contingencies and commitments arising from off-statement of financial position items at their equivalent peso contractual amounts as of September 30, 2025 and December 31, 2024: September 30, 2025 December 31, 2024 (Unaudited) (Audited) Derivative assets P 359,308 P 206,527 Outstanding guarantees issued 300,737 268,149 Derivative liabilities 116,432 105,484 Spot exchange sold 27,619 10,617 Spot exchange bought 27,631 10,613 Unused commercial letters of credit 17,549 23,098 Inward bills for collection 7,542 10,677 Late deposits/payments received 780 859 Outward bills for collection 77 28 Others 266 63 Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 24 ADDITIONAL DISCLOSURES TO ITEM I – FINANCIAL STATEMENTS Statement of Compliance with Generally Accepted Accounting Principles. The interim financial statements of the Bank have been prepared in accordance with the Philippine Financial Reporting Standards (PFRS). See accompanying Notes to Interim Financial Statements for the detailed discussion of compliance with Generally Accepted Accounting Principles. Accounting Policies and Methods of Computation. See accompanying Notes to Interim Financial Statements for the detailed discussion of the accounting policies and methods of computation (Note 2). Seasonality or Cyclicality of Interim Operations. Seasonal or cyclical events and/or conditions do not materially affect the year-round operations of the Bank. Changes in Estimates of Amounts Reported. There were no changes in estimates of amounts reported in prior interim periods of the current financial year or in estimates of amounts reported in prior financial years. Issuances, Repurchases and Repayments of Debt and Equity Securities. On March 31, 2025, the Board of Directors approved the redemption of all and not less than all of the Bank’s USD300.0 million 6.5% Non-Cumulative Subordinated Additional Tier 1 Capital Securities callable beginning August 27, 2025 pursuant to its exercise of the "Redemption at the option of the Issuer". In accordance with the BSP’s approval and the terms and conditions of the AT1 capital, the hybrid perpetual securities were fully redeemed on August 27, 2025. In July 2025, the Bank raised P12.2 billion fixed rate peso-denominated Series F ASEAN Sustainability Bonds due in 2028 from its P200.0 billion Bond and Commercial Paper Programme. The Bonds carry a coupon rate of 6.00% per annum. In January 2025, the Bank raised USD350.0 million Five-year Senior Unsecured Fixed Rate Sustainability Bonds (the Notes) via a drawdown from its USD4.0 billion Medium Term Note Programme. The Notes carry a coupon rate of 5.375% per annum. Dividends Paid for Ordinary or Other Shares. In its meeting held on August 26, 2025, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.15985 per share or a total of P42.4 thousand payable to holders of Preferred Class shares and paid on September 23, 2025. In its meeting held on July 28, 2025, the Board of Directors approved the declaration and payment of cash dividends on the Bank’s USD300 million Non-cumulative Hybrid Perpetual Securities at a dividend rate of 6.50% per annum or a total of USD9.8 million or P561.4 million payable to holders of said Securities, which was paid on August 27, 2024. In its meeting held on May 26, 2025, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.15939 per share or a total of P42.4 thousand payable to holders of Preferred Class shares and paid on June 25, 2025. In its meeting held on March 31, 2025, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.70 per share or a total of P1.7 billion and P186.3 thousand payable to holders of Common Class and Preferred Class shares, respectively, to be paid on May 5, 2025. In its meeting held on February 24, 2025, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.1584 per share or a total of P42.2 thousand payable to holders of Preferred Class shares and paid on March 26, 2025. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 25 In its meeting held on January 27, 2025, the Board of Directors approved the declaration and payment of cash dividends on the Bank’s USD300.0 million Non-cumulative Hybrid Perpetual Securities at a dividend rate of 6.50% per annum or a total of USD9.8 million or P564.6 million payable to holders of said Securities, which was paid on February 27, 2025. In its meeting held on November 25, 2024, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.1707 per share or a total of P45.4 thousand payable to holders of Preferred Class shares and paid on December 26, 2024. In its meeting held on August 27, 2024, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.1857 per share or a total of P49.5 thousand payable to holders of Preferred Class shares and paid on September 26, 2024. In its meeting held on July 29, 2024, the Board of Directors approved the declaration and payment of cash dividends on the Bank’s USD300.0 million Non-cumulative Hybrid Perpetual Securities at a dividend rate of 6.50% per annum or a total of USD9.8 million or P572.2 million payable to holders of said Securities, which was paid on August 27, 2024. In its meeting held on May 27, 2024, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.1854 per share or a total of P49.4 thousand payable to holders of Preferred Class shares and paid on June 25, 2024. In its meeting held on March 25, 2024, the Board of Directors approved the declaration and payment of cash dividends amounting to P1.0140 per share or a total of P2.5 billion and P270.1 thousand payable to holders of Common Class and Preferred Class shares, respectively, both paid on April 26, 2024. In its meeting held on February 26, 2024, the Board of Directors approved the declaration and payment of cash dividends amounting to P0.1864 per share or a total of P49.8 thousand payable to holders of Preferred Class shares and paid on March 21, 2024. In its meeting held on January 29, 2024, the Board of Directors approved the declaration and payment of cash dividends on the Bank’s USD300.0 million Non-cumulative Hybrid Perpetual Securities at a dividend rate of 6.50% per annum or a total of USD9.8 million or P549.4 million payable to holders of said Securities, which was paid on February 27, 2024. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 26 The details of the cash dividend approvals and distributions from 2024 up to September 30, 2025 are as follows (amounts in Thousand Php except per share figures): Date Declared Dividend Date Paid / Payable Nature of Securities Per Share Total Amount 29-Jan-24 - P 549,412.5 27-Feb-24 Hybrid Perpetual Securities 26-Feb-24 P 0.1864 P 49.8 21-Mar-24 Convertible Preferred 25-Mar-24 P 1.0140 P 2,453,409.8 26-Apr-24 Common Stock 25-Mar-24 P 1.0140 P 270.1 26-Apr-24 Convertible Preferred 27-May-24 P 0.1854 P 49.4 25-Jun-24 Convertible Preferred 29-July-24 - P 572,227.5 27-Aug-24 Hybrid Perpetual Securities 27-Aug-24 P 0.1857 P 49.5 26-Sep-24 Convertible Preferred 25-Nov-24 P 0.1707 P 45.4 26-Dec-24 Convertible Preferred 27-Jan-25 - P 564,622.5 27-Feb-25 Hybrid Perpetual Securities 24-Feb-25 P 0.1584 P 42.2 26-Mar-25 Convertible Preferred 31-Mar-25 P 0.70 P 1,693,675.5 5-May-25 Common Stock 31-Mar-25 P 0.70 P 186.3 5-May-25 Convertible Preferred 26-May-25 P 0.15939 P 42.4 25-Jun-25 Convertible Preferred 28-Jul-25 - P 561,405.0 27-Aug-25 Hybrid Perpetual Securities 26-Aug-25 P 0.15985 P 42.4 23-Sep-25 Convertible Preferred Note: In 2015, the BSP, through the monetary board, approved the liberalized rules for banks and quasi-banks on dividend declaration. The policy requires that dividend declaration be immediately recognized as a liability upon the approval of the BOD and that it be disclosed in the statement of changes in equity. Further, prior BSP approval is no longer required except for certain cases. Material Events Subsequent to the End of the Interim Period Not Reflected in the Financial Statements. There were no material events subsequent to the end of the interim period not reflected in the financial statements. Changes in Composition of the Issuer During the Interim Period and Material Contingencies and Any Other Events or Transactions. There were no material changes in composition of the issuer during the interim period and material contingencies and any other events or transactions. Changes in Contingent Liabilities or Contingent Assets. There were no material changes in contingent liabilities or contingent assets since the last annual balance sheet date. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 27 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Financial Performance RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIES Consolidated Parent Unaudited Audited Unaudited Audited 30-Sep-25 31-Dec-24 30-Sep-25 31-Dec-24 Return on Average Assets (ROA)* 1/ 0.8% 0.8% 0.8% 0.8% Return on Average Equity (ROE) *2/ 6.9% 6.0% 6.9% 6.0% Risk-based Capital Adequacy Ratio (CAR) 14.2% 16.1% 13.9% 15.9% Common Equity Tier 1 Ratio 13.3% 13.5% 13.0% 13.3% Non-Performing Loans (NPL) Ratio 3/ 2.9% 2.4% 2.7% 2.2% Non-Performing Assets (NPA) Ratio 4/ 1.9% 1.6% 1.7% 1.4% Net Interest Margin (NIM)* 4.7% 3.9% 4.7% 3.9% Cost-to-Income Ratio 55.6% 59.5% 55.3% 59.2% Loans-to-Deposit Ratio 5/ 76.7% 69.5% 76.1% 68.9% Current Ratio 0.7 1.1 0.7 1.1 Acid Test Ratio 0.3 0.6 0.3 0.6 Debt-to-Equity Ratio 7.8 7.6 7.8 7.5 Asset-to-Equity Ratio 8.8 8.6 8.8 8.5 Asset-to-Liability Ratio 1.1 1.1 1.1 1.1 Interest Rate Coverage Ratio 1.4 1.4 1.4 1.4 Earnings per share (EPS) 6/ Basic and Diluted* PHP 4.21 PHP 3.48 PHP 4.21 PHP 3.48 Year-to-date Basic and Diluted PHP 3.07 PHP 3.48 PHP 3.07 PHP 3.48 Unaudited 30-Sep-25 30-Sep-24 30-Sep-25 30-Sep-24 Quarter-to-date Basic and Diluted PHP 1.10 PHP 0.59 PHP 1.10 PHP 0.59 * September 30, 2025 ratios/amounts were annualized 1/ Average assets for the consolidated and parent ratios were computed based on the 9-month average of end of month balances of total assets. Unaudited net income for the 9-month period ended September 30, 2025 in the amount of P8.2 billion represented the consolidated and parent. 2/ Average equity for the consolidated and parent ratios were, likewise, computed based on the 9-month average of end of month balances. Unaudited net income for the 9-month period ended September 30, 2025 in the amount of P7.4 billion represented the consolidated and parent, net of dividends on Hybrid Perpetual Securities of P744.9 million. 3/ NPL ratio is determined by using the following formula: (Total NPLs net of total specific provision for losses of NPLs) / (Total gross loan portfolio). 4/ NPA ratio is determined by using the following formula: [Net NPLs + Gross Real and Other Properties Acquired (ROPA) + Non- performing Sales Contract Receivable (SCR) + Non-Current Assets Held for Sale (NCAHS) / Gross Total Assets. 5/ Excluding Interbank Loans. 6/ Total weighted average number of issued and outstanding common shares (diluted) were 2,419,588,522 shares as of September 30, 2025 and 2,419,588,776 as of December 31, 2024. Net income was net of dividends on Hybrid Capital Securities. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 28 STATEMENT OF CONDITION: 30 September 2025 vs. 31 December 2024 RCBC’s Total Assets stood at P1.3 trillion as of September 30, 2025. The significant movements are discussed below: Cash and Other Cash Items declined by 30.0% or P6.9 billion due to lower cash requirements compared to year-end. Due from Bangko Sentral ng Pilipinas decreased by 45.5% or P52.4 billion due to lower demand deposits and short-term placements with the BSP. Due from Other Banks dropped by 72.4% or P10.5 billion due to decrease in foreign bank placements as a result of redeployment of funds. Loans Arising from Reverse Repurchase Agreement increased by 100.0% or P25.0 billion due to placements with the BSP. Total Investment Securities, representing 30.2% of Total Resources, decreased by 7.5% or P32.3 billion attributable to the 20.0% or P31.7 billion decline in Financial Assets at Fair Value Other Comprehensive Income (FVOCI); 2.4% or P6.3 billion decrease in Investment Securities at Amortized Cost; net of the 56.4% or P5.8 billion increase in Financial Assets at Fair Value Through Profit or Loss (FVTPL). Loans and Receivables – net was recorded at P774.7 billion and represented 58.9% of Total Resources. Investment in Associates – net increased by 33.1% or P198.9 million on account of higher income from Associates. Bank Premises, Furniture, Fixtures & Equipment – net declined by 11.4% or P917.9 million mainly due to amortization of right-of-use assets. Investment Properties – net increased by 7.3% or P50.0 million mainly attributable to foreclosures for the period. Deferred Tax Assets was up by 13.1% or P795.3 million mainly due to the additional recognition of deferred tax assets during the period. Other Resources – net decreased by 3.6% or P741.2 million. Total Liabilities settled at P1.2 trillion with a decrease of P35.7 billion. The significant movements are discussed below: Deposit Liabilities, which accounted for 75.8% of Total Resources, stood at P997.0 billion and declined by P25.8 billion or 2.5%. Bills Payable decreased by 17.5% or P15.2 billion due to lower foreign borrowings during the period. Bonds Payable increased by 122.4% or P33.0 billion primarily due to the issuance of the P12.2 billion peso-denominated Series F ASEAN Sustainability Bonds in July 2025 and the USD350.0 million Senior Unsecured Fixed Rate Sustainability Bonds in January 2025. Accrued Taxes, Interest and Other Expenses were down by 7.6% or P887.0 million primarily due to decline in accruals on taxes, interest and insurance. Other Liabilities declined by 49.8% or P26.7 billion largely due to the decrease in trade payables during the period. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 29 Total Capital Funds stood at P148.7 billion, which is lower by P9.8 billion or 6.2% mainly on account of the P14.5 billion redemption of Hybrid Perpetual Securities in August 2025 and the P2.8 billion cash dividends declared/paid by the Bank, offset by the P8.2 billion net income for the period and significant improvement in valuation of FVOCI investments. INCOME STATEMENT: 30 September 2025 vs. 30 September 2024 The Bank recorded a Net Income of P8.2 billion for the nine-month ended September 30, 2025 driven by the following: Total Interest Income jumped by 9.3% or P5.4 billion driven by the growth in volume and better average yields. Interest income on loans and receivables was higher by 15.6% or P7.0 billion; interest income on investment securities was lower by 6.7% or P806.3 million and other interest income lower by 47.3% or P766.4 million on account of lower term deposits with the BSP. Total Interest Expense decreased by 16.2% or P4.5 billion due to lower interest expense on deposit liabilities by 22.2% or P5.2 billion caused by decline in average costs. Meanwhile, interest expense on bills payable and other borrowings increased by 17.5% or P726.1 million mainly due to higher volume. As a result, Net Interest Income amounted to P40.8 billion from P30.9 billion, higher by 32.0% or P9.9 billion. It represented 87.3% of total operating income. The Group booked Impairment Loss Provision of P10.7 billion, higher by 89.9% or P5.0 billion. It represented 22.8% of total operating income. Other Operating Income of P5.9 billion declined by 13.4% or P917.9 million on account of the following: Trading and securities gains – net, down by 36.5% or P188.0 million driven by lower mark to market valuation; Service fees and commissions, higher by 25.0% or P1.6 billion largely from the increase in fee- based income; Foreign exchange losses – net, higher by P2.1 billion or 99.7% largely on account of lower foreign currency transaction profits net of higher valuation of foreign exchange position and higher gains from commercial transactions; Gain on assets sold – net, decreased by 22.7% or P209.2 million due to the lower gain on sale of bank-owned assets this year; Miscellaneous income, lower by 2.5% or P30.1 million. Other Operating Expenses amounted to P26.0 billion, higher by 11.6% or P2.7 billion on account of the following: Employee benefits, up by 10.9% or P665.2 million due to increase in headcount; Occupancy and equipment-related costs, higher by 15.5% or P435.1 million largely due to higher information technology costs and increase in rental expenses; Depreciation and amortization, up by 7.4% or P186.0 million largely due to higher amortization of leasehold rights and improvement and software and higher depreciation of computer equipment; Taxes and licenses, decreased by 5.5% or P258.9 million mainly due to lower documentary stamp tax; Miscellaneous expenses, jumped by 23.2% or P1.7 billion largely due to higher credit card- related expenses and other volume-driven expenses. Tax Expense was lower by P712.0 million or 26.9% mainly due to lower final taxes and higher deferred income tax benefit recognized during the period. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 30 Commitments and Contingent Liabilities See accompanying Notes to FS for the detailed discussion of Commitments and Contingent Liabilities and the summary of contingencies and commitments arising from off-balance sheet items and their equivalent peso contractual amounts (Note 13). There are also no known trends, events or uncertainties that have had or that are reasonably expected to have a material favorable or unfavorable impact on net sales/revenues/income from continuing operations. There were no material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the company with unconsolidated entities or other persons created during the reporting period. Similarly, there were no significant elements of income or loss that did not arise from the Bank’s continuing operations. Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 31 SIGNATURES Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Issuer RIZAL COMMERCIAL BANKING CORPORATION Date November 12, 2025 REGINALDO ANTHONY B. CARIASO President & CEO FLORENTINO M. MADONZA FSVP, Head-Controllership Group MARIA CHRISTINA P. ALVAREZ FSVP, Head-Corporate Planning Group Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.
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Rizal Commercial Banking Corporation: September 2025 SEC Form 17-Q 32 RIZAL COMMERCIAL BANKING CORPORATION Aging of Accounts Receivable As of September 30, 2025 (Amounts in Millions of Philippine Pesos) 1 - 90 days 91 - 180 days 181 -1 year Over 1 year Total Allowance Net Accounts Receivable 5,736.1 101.0 179.4 1,095.1 7,111.6 1,052.1 6,059.5 Evaluation Only. Created with Aspose.Pdf.Kit. Copyright 2002-2011 Aspose Pty Ltd.