Chinabank net income climbs to record P18.4B as of September

CHINA BANKING Corp. (Chinabank) saw its net income rise by 13% year on year to a record P18.4 billion in the nine months ended September as its core businesses posted steady growth.

This translated to a return on equity of 15.7% and return on assets of 1.6%, it said in a disclosure to the stock exchange.

The Sy-led lender’s financial statement was unavailable as of press time.

“This record performance is the result of the hard work of our employees, the continued execution of our strategies, and our steadfast focus on the needs of our customers,” Chinabank President and Chief Executive Officer Romeo D. Uyan, Jr. said.

“We sustained our strong asset expansion and continued to be very purposeful in using Chinabank’s resources to pursue our growth plans and to boost our capabilities to better serve our customers. The improving macro trends and supportive regulatory environment will help the bank’s performance,” Chinabank Chief Finance Officer Patrick D. Cheng added.

The bank’s total operating income grew by 14% to P46.3 billion on the back of higher interest earnings from loans, securities and other investments, along with improved transaction-based income.

Net interest margin stood at 4.4%.

Meanwhile, Chinabank’s operating expenses increased by 9% to P22 billion at end-September “despite bigger volume-related taxes.”

This resulted in a cost-to-income ratio of 48%.

Chinabank’s loan portfolio expanded by 14% to P871.6 billion as of September, driven by growth in its consumer and corporate lending segments “as it responded positively but prudently to companies’ heightened business appetite and consumers’ greater demand for credit.”

Its nonperforming loan (NPL) ratio was at 1.8%.

“Due to the bank’s conservative provisioning stance, credit provisions were hiked by 15% to P1.5 billion resulting in NPL cover of 141%, higher than the industry average,” it added.

On the funding side, deposits went up by 13% year on year to P1.3 trillion in the first nine months.

Chinabank’s assets grew by 13% annually to P1.6 trillion at end-September.

Total capital rose by 15% to P162.7 billion.

Its common equity Tier 1 ratio was at 14.8%, while total capital adequacy ratio stood at 15.7%, both above the central bank’s minimum requirements.

Chinabank shares declined by 95 centavos or 1.61% to close at P58 apiece on Thursday. — A.M.C. Sy