China Banking Corp., the country’s 5th largest lender by assets, sustained its growth momentum in the first quarter, posting a net income of P6.8 billion, up 4 percent year on year, as lending and deposit activities continued to drive performance despite a still evolving interest rate environment.
Net interest income remained as Chinabank’s main engine, climbing 14 percent to P19.5 billion, supported by higher earning assets and lower funding costs. This lifted net interest margin by 12 basis points to 4.61 percent, indicating improved efficiency in deploying capital. Profitability metrics stayed solid, with return on equity at 14.2 percent and return on assets at 1.5 percent.
Loan growth was particularly strong, rising 16 percent to P1.1 trillion on sustained demand from both corporate borrowers and retail clients. Deposits also expanded 13 percent to P1.5 trillion, with low cost checking and savings accounts growing faster at 20 percent. This pushed the CASA ratio to 48 percent, a positive signal for funding stability and margin sustainability.
Operating expenses increased by 5 percent to P8.8 billion, reflecting continued investments in digitalization and workforce expansion. Even so, the bank kept its cost to income ratio at a manageable 49 percent, underscoring disciplined spending.
Total assets grew 12 percent to P1.9 trillion, with a non-performing loan ratio at 1.6 percent. The bank also raised provisions to P684 million, lifting NPL coverage to 110 percent, strengthening its buffer against potential credit risks.
Total equity rose 10 percent to P192.3 billion, with book value per share reaching P71.42. Shareholders were rewarded with P7.5 billion in dividends, higher than last year, signaling confidence in earnings durability and continued commitment to disciplined capital management.
