China Banking
Corporation (Chinabank,
PSE stock symbol: CHIB)
recorded P16.2 billion in
net income from January
to September 2023, 10%
higher compared to the
same period last year.
This translated to a return
on equity of 15.6% and a
return on assets of 1.6%.
Chinabank’s bottom line in the last nine
months improved on the
back of robust growth from
core businesses and lower
loan loss provisions. For
the third quarter alone, the
bank netted P5.4 billion in
profits, up 16% from the
same period last year.
“ C h i n a b a n k ’ s
sustained growth reflects
the successful execution
of our business strategies.
Despite the current high
interest rate environment,
we continue to grow our
bottom line by preserving
our margins, managing
our overall costs effectively, and bringing greater
efficiencies to our operations with technology,”
Chinabank President &
CEO Romeo D. Uyan, Jr.
said.
Net interest income grew by 16% to
P39.2 billion as the 44%
surge in top line revenues
cushioned the nearly triple
increase in interest expense. Net interest margin
was maintained at 4.2%.
The bank reduced its total credit provisions to P1.3 billion given
its stable portfolio quality.
Despite this, non-performing loans (NPL) cover remained better-than-industry at 126%.
Operating expenses increased by 14%
to P20.5 billion, driven by
higher manpower and inflation-related expenses
and bigger volume and
revenue-related taxes.
Cost-to-income ratio remained healthy at 50%.
Chinabank remains as the 4th largest
private domestic bank with
total assets of P1.4 trillion,
up 11% year-on-year.
Gross loans grew
by 10% year-on-year to
P765 billion, driven by the
19% expansion in consumer loans, particularly
teachers’ loans and credit
cards. The bank’s level
of bad loans continued to
be manageable, posting a
better-than-industry average NPL ratio of 2.2%.
Total deposits increased by 14% to P1.1
trillion resulting to a 49%
CASA ratio as term deposits grew year-on-year.
“Our balance
sheet remains strong. A
quality loan book has
helped us during a period
of rising interest rates. We
also continued to optimize
our capital structure, maintaining strong capital generation and asset quality,”
Chinabank CFO Patrick D.
Cheng said.
Total capital grew
by 7% to P141 billion, with
Common Equity Tier 1
Ratio at 14.9% and Total
Capital Adequacy Ratio
at 15.8%, well above the
minimum regulatory requirement. Book value per
share was at P52.50, up
7%.
Chinabank was
recently named by the
People Management Association of the Philippines
as the 2023 Employer of
the Year, the only bank to
win the prestigious award
in 30 years. This recognition for the bank’s outstanding human resources practices comes in the
heels of its latest accolades: Outstanding Wealth
Management Service for
the Affluent Award from
the Private Banker International and Five-Golden
Arrow Award from the Institute of Corporate Directors, the second time
Chinabank has won this
distinction for its excellence in corporate governance.
