Thursday 21 March
Jan 14, 2019 @ 17:58

RCBC profits may be halved following Hanjin mess

 

This top financial consulting firm crunched the numbers in the wake of huge loan defaults facing five banks in the Philippines.

COL Financial quickly assessed that the Rizal Commercial Banking Corp. (RCBC) had the most to lose from the bankruptcy of Hanjin Heavy Industries and Construction Philippines, given its $140 million outstanding loan to the embattled Korean shipbuilder.

This represent nearly a third of the $412 million unpaid debts to five Philippine banks.

“The impact on RCB is more substantial given the larger amount of its exposure and its size relative to the big three. Based on COL Financial’s estimates, the potential impact on RCB’s profits, assuming that it fully provides for its losses is 166.1 percent based on its projected 2018 profits,” wrote COL’s April Lynn Tan in her Inquirer column.

This meant that RCBC’s bottom line could be slashed by half for 2018. The impact is more modest for the other lenders, pegged at 10.3 percent for BDO, 13.3 percent for BPI and 16.5 percent for Metrobank.

Bank stocks dove by 2.5 percent on Friday following the release of the news, but has recovered come the Jan. 14 trading.

Please follow and like us:

Tags: , , , ,

Related Stories
Investors likely gobbled up all of what the bank had to offer.
The listed banks agreed to come out with assurances that they can weather losses from
Having pre-signed checks is actually bad practice.
This bank has a new veteran joining their forces.


 

Trending News

Recommended on sister sites

Copyright © 2019 Bilyonaryo - Latest news on the richest Filipinos and Family Business.