China Bank nets record P22 billion

MANILA, Philippines — Higher core business revenues boosted the net income of Sy-led China Banking Corp. by 15 percent to hit an all-time high of P22 billion in 2023.

“Our strong growth in 2023 solidifies our position as one of the top four banks in the country,” Chinabank president and CEO Romeo Uyan Jr. said.

The higher earnings booked by the bank translated to a return on equity of 15.5 percent and return on assets of 1.6 percent.

The bank’s net interest income grew by 17 percent to P53.5 billion as the strong growth in loans and investments offset the significantly higher interest expense.

China Bank said its net interest margin was maintained at 4.2 percent.

With the improving economic conditions, China Bank reduced its loan loss provisions to P1.2 billion with asset quality remaining stable. The bank’s non-performing loan (NPL) ratio stood at 2.5 percent while its NPL coverage was sufficient at 104 percent.

Bigger volume-related taxes and heavier investments in manpower and information technology (IT) pushed operating expenses by 11 percent to P27 billion.

Simultaneously, substantial overhauls are underway within China Bank’s IT architecture as an integral component of its ongoing digital transformation endeavors.

“We remain focused on executing our business strategies while leveraging our investments in digitalization to deliver better services to our customers,” Uyan said.

China Bank’s gross loans expanded by 10 percent to P791 billion, with the share of consumer loans rising to 23 percent.

On the funding side, the bank’s deposit base went up by 11 percent to P1.2 trillion.

The bank’s assets increased by 11 percent to hit P1.5 trillion in 2023, while total equity grew by 12 percent to P150 billion.

Its common equity tier 1 ratio stood at 15.3 percent and total capital adequacy ratio at 16.1 percent, well above the regulatory minimum.