Chinabank nets P20.2 billion on strong lending, fee income

MANILA, Philippines — Sy-led China Banking Corp. sustained strong growth from January to September, posting a consolidated net income of P20.2 billion, up by 10 percent year-on-year, as solid lending and fee-based businesses continued to drive earnings.

This performance translated to a return on equity of 15.3 percent and a return on assets of 1.6 percent, keeping Chinabank among the most profitable lenders in the industry.

Interest income rose by 13 percent on the back of continued expansion in earning assets, offsetting a nine percent increase in interest expense. As a result, net interest income jumped by 15 percent to P53.5 billion, while net interest margin stayed healthy at 4.6 percent.

Fee-based income likewise expanded to P3.1 billion, supported by steady growth in trust and bancassurance commissions.

Operating expenses climbed by 15 percent to P25.3 billion due to strategic investments in manpower and technology. Despite this, the cost-to-income ratio improved to 45 percent, indicating efficient operations.

To reinforce its balance sheet, Chinabank boosted provisions to P7 billion, bringing its non-performing loan coverage to 123 percent, above the industry average. The bank’s NPL ratio improved to 1.6 percent even as lending activity accelerated.

Total assets rose by eight percent year-on-year to P1.7 trillion, cementing the bank’s position as the fourth largest private universal bank in the country.

Gross loans expanded by 14 percent to P994 billion, driven by both corporate and consumer segments. Deposits increased by nine percent to P1.4 trillion, anchored by a 12-percent rise in checking and savings accounts.

Capitalization remained strong, with total capital growing by 13 percent to P184.4 billion. Capital adequacy ratio stood at 15.8 percent and common equity tier 1 ratio at 15 percent, well above regulatory requirements. Book value per share improved to P68.49.