Chinabank earnings rise 12% to P22.6 billion

MANILA, Philippines — China Banking Corp. (Chinabank) posted a 12-percent increase in net income to P22.6 billion in the first nine months, driven by stronger lending and improved margins from its core banking business.

The Sy-led bank’s return on equity improved to 15.6 percent while return on assets stood at 1.6 percent. Net interest income climbed by 14 percent to P60.7 billion as net interest margin widened to 4.73 percent.

Asset quality remained stable, with the nonperforming loan ratio unchanged at 1.5 percent. NPLs are loans that have remained unpaid beyond a specified period and are considered at greater risk of default.

Chinabank set aside P1.9 billion for impairment and credit losses, while its NPL coverage ratio stood at 102 percent, indicating that provisions were sufficient to cover its bad loans.

Operating expenses increased by 13 percent to P28.6 billion due to investments in digital transformation and business expansion. Its cost-to-income ratio nevertheless improved to 49 percent, reflecting continued cost discipline.

Total assets expanded by 12 percent year-on-year to P1.9 trillion as of end-September, keeping Chinabank as the country’s fourth-largest private universal bank.

Net loans surged by 19 percent to P1.2 trillion, outpacing the nine-percent increase in deposits to P1.5 trillion.

Low-cost checking and savings accounts jumped by 19 percent to P751 billion, pushing  the CASA ratio to 49 percent and provided the bank with a relatively stable and cheaper source of funding.

Total equity increased by six percent to P195 billion, while book value per share rose by the same rate to P72.52.

Chinabank maintained a common equity tier 1 ratio of 14.65 percent and a capital adequacy ratio of 15.53 percent, providing buffers against potential losses while supporting further lending and business expansion.

The bank currently operates 674 branches and 1,168 automated teller machines nationwide, alongside its My CBC and My CBC Business digital banking platforms.