CBS to double income in 5 years

MANILA, Philippines — China Bank Savings (CBS), the thrift banking arm of the Sy-led China Banking Corp., aims to double its net income within five years after reporting a 23-percent growth in the first quarter on the back of sustained loan expansion and deposit growth.

“We aim to actually double our income in five years’ time. This is something that we continue to push every day,” CBS president James Christian Dee said in an interview after the banks’ annual stockholders’ meeting yesterday.

Dee also said that CBS is targeting a 20 percent loan growth this year and increasing its reach in underserved areas across the country.

Dee told the bank’s stockholders that its net income reached P566 million from January to March, up from the same period last year, despite a slower gross domestic product (GDP) growth.

“First quarter GDP growth of the Philippines came in at a modest 5.4 percent, reflecting a relatively flat growth trajectory spanning the last three quarters. In spite of this, I am happy to report that CBS has done well to start the year,” Dee said.

The bank’s total loans rose to P143 billion, while total deposits reached P171 billion as of March.

CBS also capped 2024 with its fourth straight year of record-breaking profits, posting a full-year net income of P2.17 billion, 19 percent higher year-on-year. Its total loan portfolio expanded by 21 percent to P135.5 billion, fueled by teachers’ salary loans, housing loans and auto loans.

Total deposits also climbed by 21 percent to P166.8 billion at end-2024, securing CBS’ position as the largest thrift bank in the country in terms of deposits.

CBS chairman Ricardo Chua expressed confidence in the bank’s growth trajectory.

“CBS is determined to expand our business through loans and CASA (current/savings account) growth and to future-proof our organization by focusing on asset quality, digital banking transformation and the consolidation of our distribution network,” Chua said.

CBS expects its loan portfolio to expand by 20 percent this year, driven mainly by its core retail segments such as teachers’ salary loans, auto loans, housing loans as well as a revitalized SME portfolio.

The bank has also brought down its non-performing loan (NPL) ratio to 2.75 percent, a significant drop from near double-digit levels five years ago. Dee credited the improvement to stricter credit underwriting and proactive risk management.

To support its clients, CBS will soon roll out the CBS Deloitte Environmental and Social Resilience Tool, designed to help businesses assess and manage sustainability-related risks. The tool will be launched later this year and is the first of its kind offered by any Philippine bank.

“This is something that will improve their resilience and be good for their business,” said CBS sustainability head Warren De Guzman. “CBS clients will be better off than their competitors.

The bank also plans to open five new branches this year, mostly in Visayas and Mindanao, bringing its nationwide network beyond the current 170 branches.

CBS officials likewise welcomed the entry of more players in the thrift banking sector, including affiliate BDO Network Bank, saying a broader field could help expand financial inclusion.

“We view the entry of more reputable and stable2 banking institutions as an opportunity for collaboration between competitors for the benefit of the unbanked,” Dee said.

“Consumer spending has been a major driver of the economy. With a very young population, we thought it’s a growing market. Having BDO is a welcome development, but it will not derail us from whatever plans we have in growing the bank,” Chua said.