Rizal Commercial Banking Corp. (RCBC) is adjusting its balance sheet and tightening lending to higher-risk borrowers as it prepares for a more uncertain economic environment.
Speaking at the bank’s annual stockholders’ meeting, chief executive officer Reggie Cariaso said RCBC has been strengthening its investment, credit and funding positions to better withstand persistent inflation, elevated interest rates and broader macroeconomic uncertainty.
“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 said.
As part of that strategy, RCBC shortened the average duration of its investment securities portfolio to 3.5 years as of the first quarter of 2026, down from 7.3 years in 2021, reducing its exposure to potential interest-rate increases.
The bank has also tightened credit risk management by reducing credit lines to higher-risk borrowers and rolling out an analytics-driven early intervention program, known as the CARE Program, to identify and assist auto and housing loan clients before they fall behind on repayments.
The measures come as RCBC continues to manage pressure in parts of its loan portfolio. Its consolidated gross non-performing loan (NPL) ratio stood at 4.8%.
While its corporate lending business maintained a healthier NPL ratio of 2.7% and its consumer portfolio remained below industry benchmarks, Cariaso said the bank continues to see near-term pressure in its smallest small and medium enterprise (SME) segment, which is undergoing an operational overhaul to reduce bad loans.
RCBC has also moved early to secure long-term funding before borrowing costs climbed, helping protect its funding costs and net interest margin.
The bank tapped capital markets through three bond issuances: $350 million in offshore sustainability notes priced at 5.375% in January 2025, P12.2 billion in Series F ASEAN sustainability bonds in July 2025, and a record P20.5 billion in Series G bonds priced at 6.08% in April 2026.
“My objective remains the same—to protect, scale, and elevate the strong franchise that is RCBC,” Cariaso said.
