China Banking Corp., the country’s fifth largest lender by assets, said Wednesday net income in the first quarter rose 3 percent to P5 billion, helped by asset base expansion, strong growth in net interest income and lower credit provisions.
Net interest income in the quarter climbed 18 percent to P12.7 billion on the back of the growth in consumer and business loans. Fee-based income, however, plunged 72 percent to P500 million.
China Bank said it recorded a 44 percent drop in credit provisions to P440 million due to the recovery of the economy. It said asset quality remained sound with a better-than-industry nonperforming loans ratio of 2.3 percent and NPL coverage ratio of 118 percent.
“The bank continues to do well amidst the challenging operating environment, reflecting the quality of our balance sheet, our prudent management and the strength of our core businesses. We are off to a good start as our strong capital position and solid liquidity allow us to play a major role in the reopening and growth of the Philippine economy,” said China Bank president and chief executive officer Romeo Uyan Jr.
Deposits rose 24 percent to P1.1 trillion while capitalization was increased by 11 percent to P139 billion. Capital adequacy ratio stood at 16.3 percent.
“We sustained the strong momentum in loans and deposits, outpacing the industry average and reflecting the successful execution of our strategy to strengthen our core businesses, effectively manage resources, and prudently reduce risks,” said China Bank chief finance officer Patrick Cheng.
