Chinatrust 8-month income surpasses 2002 earnings

Recoveries from bad assets, trading gains, early repayments of huge loans, and steady flow in deposits continued to buoy most banks during the economies weak performance, and foreign bank Chinatrust (Philippines) Commercial Bank Corp. is no exception.

After only eight months into 2003, Chinatrust Philippines registered a net income of P442 million which is better than the P410.9 million realized for the whole of 2002 for a 28- percent growth.

Early this year, the bank was looking at a modest growth of five percent from the 2002 performance or a little over P430 million. Officials said that the original target could be reset to 10 percent from last year’s figure.

"The (economic) environment remains tough this year," Chinatrust Philippines president and chief executive officer Joey A. Bermudez said in a press briefing.

Deposits has been hovering over P11 billion while total loan portfolio registered at a healthy P11 billion. Consumer loans, particularly the personal loan segment, remains among the best performing elements of the bank.

The bank has been averaging an estimated P300 million monthly in the personal loan segment. It is serving more than 300 companies and an undisclosed number of individuals availing of the consumer banking product.

"It is the best performing portfolio this year," Bermudez admitted.

The personal loan market came into Chinatrust Phils.‚ portfolio when it acquired the portfolio from ABN AMRO Savings Bank. The foreign bank decided to stop its thrift banking operations and concentrate solely on offshore and corporate banking activities.

The corporate lending portfolio continues to move sideways as the sector refuses to make any expansion moves. "They are consolidating the gains from last year and the early part of this year. It is a good market nonetheless as it is strong with a potential for huge growth depending however on the economy."

Non-performing loans (NPLs) remained at a little over five percent (an estimated P600 million) versus an industry average of over 15 percent of total loan portfolio. On the other hand, it has increased its loan loss cover to over 90 percent.

For the whole of 2003, Chinatrust is looking at another P1.2 billion in consumer loans alone. It hopes to maintain its 23-percent return on equity (ROE), which is considered the best among the local commercial banks. – TPT

"We have learned to tackle the unique risks of the Philippine economy that is under stress," Bermudez added