Accumn’s Post

Rizal Commercial Banking Corporation (RCBC) posted an unaudited consolidated net income of ₱6.2 billion for the nine months ending September 2024, with total assets at ₱1.3 trillion and total capital at ₱158.1 billion. Core income increased by 28% due to an 11% expansion of loans, and a general improvement in yields. The Bank’s loan expansion was primarily driven by the consumer segment, with Credit Card and Personal Loans receivables growing by 58%. Data science and digital innovations have contributed to the growth in customer and loan volumes. Additionally, the auto loan portfolio grew by 39% as RCBC leveraged new marketing and sales strategies to expand its market reach. While consumer loans now represent 39% of the Bank’s total consumer portfolio, the Corporate and SME portfolios constitute the remaining 61%. For the complete article, please visit: https://lnkd.in/gPNneXGr.

We've just launched a new commercial loan metrics tool. Read CEO Hicham Oudghiri's interview with Benzinga's Renato Leonard Capelj to learn more about how we've make the data found in the small-business section of the Uniform Bank Performance Report easier for FIs to understand -- and act on. https://lnkd.in/gXqUyp_4 #commercialloans #smb #smbdata

Over the past 12 months, C&I lending conditions have continued to deteriorate, with nonperforming levels climbing to 36% in May. News on the CRE side isn’t much better, with the percentage of CRE loans categorized as nonperforming seeing the largest monthly increase since 2020. Which sectors are the greatest risk? Watch last week’s Credit Trends in Commercial Lending webinar where AFS expert Tom Cronin offers an in-depth review of the important C&I and CRE credit trends in May, providing you with actionable insights to navigate current industry headwinds. https://lnkd.in/eYEDSNkB Don’t be left behind, consider taking advantage of what CRN can offer your institution. As the industry’s premiere business intelligence tool, representing an industry-led consortium and powered by the most robust commercial lending performance and credit quality database in the industry, CRN users can perform comparisons of their own data with that of peer banks and the industry across multiple asset types and segmentations. Contact Tom Cronin at tcronin@afsvision.com for more information and how to get started.

How did C&I and CRE lending fare over the first half of 2024? Get insights with this month’s Credit Trends in Commercial Lending Webinar at https://lnkd.in/gb7wSGJx with AFS expert Tom Cronin!   This month’s webinar featured a review of the Credit Risk Navigator (CRN) portfolio’s performance for the first 6 months of the year. Generally, we’re seeing that while C&I performance has been relatively stable, CRE has experienced more significant declines in performance, with all nonperforming and delinquency measurements higher than what we observed the same time last year.   With challenges in both C&I and CRE lending, we weren’t surprised with the results of our in-webinar polls, showing that many banks are still reticent to loosen their credit standards, with approximately 80–90% of respondents indicating their standards are either the same as before or slightly tighter.   Don’t be left behind, find out what the CRN can do for you! Contact Tom Cronin at tcronin@afsvision.com for more information and how to get started.   @RMAHQ #RMACRNpoweredbyAFS #AFSBusinessIntelligence #CommercialCreditQuality #CommercialLending #CommercialCredit #CILoans #CRELoans #BankingTrends #LendingTrends

🚀 YES Bank's Q1 Performance: Loans and Advances Surge 14.8% YoY 🚀 We are thrilled to share YES Bank's remarkable Q1 performance, showcasing a significant 14.8% Year-over-Year (YoY) increase in loans and advances! 📈 This growth highlights our unwavering commitment to supporting businesses and individuals, driving economic progress, and delivering value to our stakeholders. Key Highlights: ✅ Loans and Advances surged by 14.8% YoY ✅ Robust financial health and strategic growth ✅ Strengthening our position as a leading financial institution At YES Bank, we continue to focus on innovation, customer-centric solutions, and sustainable growth. Our dedicated team is the backbone of our success, ensuring we meet and exceed our goals every quarter. Thank you to our customers, partners, and employees for their continued trust and support. Together, we are building a brighter financial future. 💪 https://lnkd.in/epkq66Z4 #YESBank #FinancialGrowth #Q1Performance #LoansAndAdvances #BankingIndustry #EconomicGrowth #CustomerCentric #InnovationInBanking #SustainableGrowth #BusinessSuccess

The banking industry continued to show resilience in the second quarter. However, the industry still faces significant downside risks from uncertainty in the economic outlook, market interest rates, and geopolitical events. These issues could cause credit quality, earnings, and liquidity challenges for the industry. In addition, weakness in certain loan portfolios, particularly office properties, credit cards, and multifamily loans, continues to warrant monitoring. These issues, together with funding and margin pressures, will remain matters of ongoing supervisory attention by the FDIC. 

Indeed in H1:2024-25 there has been a slower rate of growth in #unsecuredcredit, partly due to reduced spending/consumption and partly due to the #RBI's cooling off measures such as increase in risk weighted capital requirements for #personalloans and #creditcards (starting November last year!) But not only are there still #pocketsofopportunity and #whitespaces such as in #microcredit especially in #NTC #unserved #underserved segments, there is also the real need for #credit including in #sme #msme where credit has an #incomegeneration function very similar to #microfinance #Lenders leveraging #analytics to grow with #managedrisk in OND24 and JAM25 will possibly prove the hypothesis. #consumercredit #smallbusinesscredit #creditorigination #creditunderwriting #creditrisk #creditscore #creditscoring

Industry officials and analysts identified three reasons for the state of things; One, a post-covid credit binge that drew in many borrowers; two, employees chasing disbursement targets pushing loans to those who are already indebted; and three, delayed updates of data from credit bureaus that lenders rely on to check applicants' existing liabilities. With Varun Sood #microfinance #MFI #stress #RBI

Definitely a case of "Necessary but not sufficient". The positive development of course is the expected outcome of moving towards freshness of data rather than staleness - with the current 60+ days old reported credit data. My two cents: 1. Parijat Garg - Perhaps delta reporting of defaults can happen daily along with new loans/loan closures and then a weekly/fortnightly recon/overall data submission (full data). 2. Agree with Mukesh Bubna on the need to move to daily data submission - Possibly to start with large banks or large loans (being defined suitably of course!). In fact there are some markets where credit reporting has been happening on a daily basis for a few years now. See below: AECB / Al Etihad Credit Bureau https://lnkd.in/gAxKue76 (See the last question on this page) #creditreporting #creditscoring #lending #credit #creditbureau #RBI #cic #regulatory #creditinformation #creditscore

A welcome move by RBI to shorten the frequency of reporting by banks to credit bureaus (Credit Information Companies) to improve the timeliness and accuracy of credit information to lenders. From January 1, 2025, banks will have to provide credit reporting to credit information companies on a fortnightly basis, instead of a monthly basis. As a result of this move, timeliness and accuracy of information available to lenders will improve. It is only apt that in today's VUCA world where risk levels change so quickly reporting to credit bureaus happens more frequently. RBI Governor Mr. Shaktikanta Das said, “The fortnightly reporting frequency would ensure that credit information reports provided by CICs reflect more recent information. This will be beneficial to both borrowers and lenders (CIs). Borrowers will have the benefit of faster updation of information, especially when they have repaid the loans. Lenders will be able to make better risk assessments of borrowers and also reduce the risk of over-leveraging by borrowers". This move brings back memories when India's first credit bureau CIBIL was being set up in the year 2000. I had a small role to play as my previous organisation was a shareholder of CIBIL responsible for commercial bureau operations. The format and quality of data emanating from banks was abysmal and we had to build tools to clean, parse, de-duplicate the data. It took a couple of years for the data sharing process to stabilise. So much has changed in the past 25 years!!! Credit bureaus are household names today and everyone knows the importance of their credit scores....India is truly building a strong #creditculture. As for me, even after 25 years, I'm delighted to be working in the same domain with my brilliant team at Rubix Data Sciences Private Limited to leverage unstructured data from myriad sources, along with traditional data, to help banks, corporates and credit insurance companies assess B2B Credit Risk, #SupplierRisk and #ComplianceRisk. #CreditBureau #CreditScore #CreditRisk #CreditRiskManagement #RiskInformation #CreditRiskInformation #RiskAnalytics #CreditReporting Mohan Ramaswamy Dr. Vishnu Ramchandran Mohan Tanksale Samiran Ghosh Tushar Bhaskar Ankita Drolia Abhishek Shetty Anand Date Joachim C Bartels David Emery Harshala Chandorkar Ravi Khiyani Amandeep Bhatia Siddhant Chowdhury Anurag Joshi Madhavankutty G Simantini Biswas Hasan Naqvi Anshuman Thakur Kaustubh Barve Ingrid Riehl