The growth was due to higher net interest margins on the loan portfolio and lower funding costs.
Recoveries from non-performing loans (NPLs), gains from foreign exchange trading, profits from sale of foreclosed assets, prudent spending, and reversal of loan loss provisions due to continued improvement in risk asset quality, likewise contributed to the income growth.
The bank’s performance ratios remain significantly better than industry.
Return on equity (ROE) for this period was recorded at 20.61 percent while return on assets (ROA) was 4.25.
NPLs ratio dropped to a low of 3.68 percent, versus 4.09 percent as of end of last year.
This ratio is almost four times lower than the industry average of 14.24 percent.
In the first quarter of the year, the bank launched two innovative products:
Ultimate Checkwriter and Innov8.
The Ultimate Checkwriter is a stand-alone software that enables small and medium enterprises to efficiently manage their trade payables.
On the other hand, Innov8 is a long-term peso time deposit product that offers the depositor flexibility in maximizing the fax-free yield on his savings.
For the rest of 2004, the foreign bank hopes to duplicate its 2003 income performance by cautiously pursuing its core businesses in the Philippines amidst the political anxieties of an election year.
Chinatrust Phils. is one of the most important overseas subsidiaries of Chinatrust Commercial Bank of Taiwan, the world’s 158th biggest bank in terms of capital.