China Bank profit up 19% to P1 billion in Jan-Mar

MANILA, Philippines - China Banking Corp. reported a consolidated net income of P1.05 billion for the first three months of 2010, about 19 percent higher than the P884 million profit registered in the same period in 2009.

The figure is equivalent to 14.23-percent return on equity (ROE) and a 1.79 percent return on assets (ROA), among the highest in the industry.

Net interest income grew 14.94 percent to P2.22 billion year-on-year despite the drop in interest revenues by 3.30 percent to P3.37 billion year-on-year as interest expense declined even further by 25.82 percent to P1.16 billion.

Total resources reached P228.71 billion last year, or 10.06 percent higher than in 2009.

Deposits improved 9.76 percent to P187.31 billion from last year as low-cost checking account/savings account (CASA) deposits grew 4.45 percent.

Other income managed to grow by 10.67 percent from P816 million to P903 million, driven by other fee-based revenues and supplemented by better-than-projected gains from sale of acquired properties.

“China Bank continues to invest heavily in expanding its branch and ATM network and strengthening its technological capabilities. It remains one of the best in terms of cost efficiency with a cost-to-income ratio of 56.94 percent (from 58.06 percent in 2009),” the bank reported yesterday.

By 2014, its branch network is targeted to number 400. This year alone, the bank is looking at opening 40 branches (30 for the main bank and 10 for the savings bank).

Total capital funds reached P31.59 billion, translating to a capital adequacy ratio (CAR) of 12.79 percent.

China Bank board declared yesterday a P12 per share cash dividend or a total of P1.17 billion to holders of 97.51 million outstanding shares, and a 10-percent stock dividend, subject to the approval and ratification by stockholders and the Bangko Sentral ng Pilipinas (BSP).

“We are pleased to be able to consistently reward our stockholders with significant dividends,” Peter S. Dee, China Bank president and chief executive officer, said.

The cash dividend represents 28.52 percent of the 2009 net income of P4.10 billion (earnings per share of P42.07).