China Banking Corp., the country’s 6th largest lender by assets, sustained its strong performance in the first quarter, with higher interest income and continued loan expansion fueling a 10 percent growth in net income to P6.5 billion.
Chinabank, whose major shareholder is the Henry Sy Group, posted first-quarter return on equity of 15.1 percent and a return on assets of 1.6 percent.
“We are pleased with our first-quarter results, which reflect the concerted efforts across all our business units to drive organic growth and support our customers.”
Chinabank president and chief executive officer Romeo D. Uyan Jr.
The bank’s net interest income rose 14 percent to P17.1 billion, driven by higher asset yields and strong loan volumes, which offset the impact of rising interest expenses. Net interest margin held steady at 4.5 percent. Total revenue rose 8 percent to P16.3 billion.
Operating expenses rose 17 percent to P8.4 billion due to ongoing investments in digital capabilities, infrastructure, and talent development.
Gross loans increased by 19 percent to P954 billion, driven by strong demand from both business and consumer sectors.
On the funding side, the bank generated 8 percent more deposits to P1.3 trillion, underpinned by the sustained increase in checking and savings accounts and time deposits.
Chinabank chief finance officer Patrick D. Cheng said the bank’s ongoing digital transformation as a key growth driver. “We expect to provide better service, expand our customer base, and deepen client relationships with the launch earlier this year of our enhanced mobile app, My CBC, and other digital initiatives in the pipeline,” he said.
Total equity stood at P175 billion, up 13 percent, with book value per share rising by 13 percent to P65.01.
Chinabank declared 14 percent higher cash dividends this year, totaling P6.7 billion, equivalent to a payout ratio of 27 percent. Shareholders on record as of May 9, will receive P1.50 per common share regular dividend and an additional P1.00 per common share special dividend on May 22.
