China Bank net income soars to P2.31B

China Banking Corp. (China Bank) has posted a net income of P2.31 billion as of end-September, up 7.7 percent from the P2.1 billion in the same period last year.

This translates to a return on average equity (ROAE) of 15.1 percent, an improvement from last year’s 14.22 percent, and a return on average assets of 2.47 percent from last year’s 2.44 percent, both among the highest in the industry.

Total revenues also grew by 19.3 percent from P7.9 billion to P9.42 billion. Moreover, China Bank recorded a capital adequacy ratio (CAR) of 29.74 percent.

China Bank’s total resources stood at P132.14 billion, 17.5 percent higher than the year-ago level of P112.5 billion.

Total capital funds reached P21 billion, up by 6.5 percent from last year’s P19.7 billion while total deposits rose to P99.3 billion, 23.6 prcent more than the P80.3 billion posted last year.

China Bank recently paid out a P1.278 billion in cash dividends at P35 per share, on top of a 35 percent stock dividend approved in the last stockholders’ meeting. The Bangko Sentral ng Pilipinas also recently approved the doubling in China Bank’s authorized capital stock to P10 billion from P5 billion.

The bank’s continued strong performance can be attributed to increased lending, especially consumer lending, record growth in low-cost funds and substantial gains in treasury and trust operations.

Provision for probable losses for January to September 2005 amounted to P651 million, a P41 million increase from the P610 million reported a year ago bringing total loan loss reserves to P6.5 billion, and the loan loss coverage ratio to 90.64 percent, one of the best ratios in the industry.

China Bank has over 140 full-service branches with longer banking hours from 9 a.m. to 4 p.m. It also has over 200 ATMs nationwide, many of which are in strategic off-branch locations such as shopping malls. It recently launched its Internet and mobile banking platform,China Bank Online, which makes it possible for clients to access their accounts on the Internet or through their cellular phones.

It recently opened the China Bank Online Center at the ground floor of China Bank’s head office in Makati, a place for onlinebanking and good coffee. Visit www.chinabank.ph for more information on China Bank’s other products and services.