China Bank net profit up 6.3% to P813M in Jan-Mar

China Banking Corp. (China Bank) posted the best return on equity (ROE) at 17.9 percent for the first three months of the year. The bank recorded a net income of P813 million for the period, surpassing last year’s figure by P48 million or 6.3 percent.

During the May 6 annual stockholders’ meeting, China Bank president and CEO Peter S. Dee said the impressive first quarter results mean the bank is maintaining the extraordinary performance of the previous years.

The bank’s strong performance was accounted for by higher interest margins, volume increases in loans, lower provision for losses and reduced operating expenses.

Securities trading gains remained substantial but was lower than the first quarter last year due to the slight increase in peso and dollar interest rates.

For the first three months, the bank’s operating expense declined by 13 percent and cost to income ratio is still better than industry at 47.55 percent.

At the end of the first quarter, China Bank’s total resources stood at P105.7 billion, 1.8 percent higher than the year ago level of P103.9 billion. Total capital funds of P18.6 billion increased by 16 percent from P16 billion last year – 6th highest in the industry – while total deposits stood at P72.5 billion.

Capital adequacy ratio of P28.8 percent makes China Bank one of the strongest commercial banks in terms of capitalization. As of end of 2003, China Bank ranked 4th largest in terms of capitalization among publicly listed banks and 13th among listed companies in the country.

China Bank stockholders ratified a five percent or P5/share cash dividend and a 20- percent stock dividend. The record and payment dates of said dividend will be fixed by the board after approval by the Bangko Sentral ng Pilipinas and the approval in principle of the listing of the stock dividend by the Philippine Stock Exchange, Inc. and issuance of the Securities and Exchange Commission.

China Bank chairman Gilbert U. Dee announced that the bank posted an audited net income of P2.6 billion for 2003, for an earnings per share of P86.02, compared to the previous year’s P85.30.

At the same stockholders’ meeting, re-elected as members of the board were Gilbert U. Dee, Hans T. Sy, Peter S. Dee, Joaquin T. Dee, Dy Tiong, Pilar N. Liao, Harley T. Sy, Henry T. Sy Jr., Herbert T. Sy, and Yvonne S. Yuchengco. Also elected was Donato T. Faylona as new member of the board.

Following the organizational meeting, the members of the board re-elected Gilbert U. Dee, chairman; Hans T. Sy, vice chairman and chairman of the executive committee; and Peter S. Dee, president and chief executive officer.

China Bank, founded in 1920, has 141 branches nationwide and 171 ATMs, with many off-branch locations in strategic sites such as shopping malls and MRT stations.