China Banking Corp., one of the lenders owned by the Sy Group, said Tuesday net profit in 2023 rose 15 percent to a record P22 billion on double-digit growth in net interest income and lower provisions for possible loan losses.
Net interest income rose 17 percent to P53.5 billion as the strong growth in loans and investments offset the significantly higher interest expense. Net interest margin was maintained at 4.2 percent.
With the improving economic conditions, the bank reduced loan loss provisions to P1.2 billion. Asset quality was stable with a 2.5 percent non-performing loan ratio while NPL coverage remained sufficient at 104 percent.
Operating expenses were 11 percent higher at P27.0 billion on bigger volume-related taxes and heavier investments in manpower and IT. Simultaneously, substantial overhauls are underway within Chinabank’s IT architecture as an integral component of its ongoing digital transformation endeavors. Cost-to-income ratio was at 50 percent.
“Our strong growth in 2023 solidifies our position as one of the top four banks in the country,” Chinabank president and chief executive officer Romeo D. Uyan Jr. said. “We remain focused on executing our business strategies while leveraging our investments in digitalization to deliver better services to our customers.”
Total assets hit P1.5 trillion, up 11 percent, still the Philippines’ fifth largest lender by assets.
Gross loans grew by 10 percent to P791 billion, with the share of consumer loans to the total loan portfolio now at 23 percent. On the funding side, total deposits rose 11 percent to P1.2 trillion.
