Chinabank sustains income rise as revenue lifts, provisions decline

China Banking Corp. on Thursday reported sustaining profitability in the first half, with net income rising 7 percent to P10.8 billion on higher revenues and lower provisioning. 

The country’s 5th largest lender by assets said profits from January to June translate to a return on equity of 15.9 percent and a return on assets of 1.6 percent.

Chinabank said revenue totaled P27.2 billion in the first semester, up 8 percent year-on-year. Net interest income climbed 16 percent to P25.5 billion as the robust growth in top line revenue offset the surge in interest expense.

“Our customer focus and disciplined operational execution enabled us to continue to deliver strong results to all our stakeholders,” said Chinabank president and chief executive officer Romeo Uyan, Jr.


Non-performing loan (NPL) cover remained sufficient and above industry at 122 percent.

Continued heavy investments on human resource development and digital innovation, along with higher volume and revenue-related taxes, led to a 22 percent increase in operating expenses to P13.6 billion. Even so, cost-to-income ratio remained healthy at 50 percent.