China Banking Corp., an affiliated lender of the Sy Group, said Thursday robust growth in core lending and deposit-taking activities drove its first-half net income 6 percent higher to a record high P11.4 billion.
The first half results resulted in a return on equity of 15.1 percent and a return on assets of 1.5 percent, which positioned Chinabank among the leaders in the banking industry.
“Our business performance has shown significant improvement in the first half of the year,” said Chinabank president and chief executive officer Romeo D. Uyan Jr.
“The growth in our core lending and deposit-taking operations, combined with stable asset credit quality and controlled operating costs, has resulted in our highest net income for the first half of the year. This solidifies our position as one of the top four banks in the Philippines,” he added.
Chinabank said first-half net interest income rose 19 percent to P30.4 billion on improved net interest margin to 4.4 percent.
Chinabank also reported an enhancement in credit quality despite a substantial expansion in loans. The bank’s non-performing loan ratio improved to 1.9 percent, better than the industry average.
Chinabank credit provisions decreased to P737 million, while NPL coverage remained robust at 141 percent.
Operating expenses increased by 5 percent to P14.1 billion, primarily due to higher volume-related taxes. However, the cost-to-income ratio saw a slight improvement to 49 percent.
The bank’s balance sheet expansion was supported by a 10 percent rise in capital, totaling P152 billion. Chinabank said Common Equity Tier 1 ratio stands at 14.5 percent, and the total capital adequacy ratio is at 15.3 percent, both well above regulatory requirements. The book value per share increased by 10 percent year-on-year to P56.42.
“This solid financial performance, underpinned by strong capital and liquidity, reflects CBC’s financial strength, prudent risk management, and enhanced customer focus,” said Chinabank chief finance officer Patrick D. Cheng.
