China Bank income down 17.5% to P867M in first quarter

Manila, Philippines - China Banking Corp. has reported a net income of P866.98 million in the first quarter of 2011, down 17.5 percent from P1.05 billion in the same period last year, due to a 1.6 percent drop in net interest income (net of loan loss provisions) and lower trading gains.

Nonetheless, China Bank executive vice president and chief operating officer Ricardo R. Chua said the results were anticipated.

“Our budget numbers have quarterly targets that are progressively higher during the year to reflect the build-up of business volumes, especially loans, in the succeeding quarters,” Chua said.

Total deposits amounted to P195.1 billion, up 4.2 percent compared to the same period last year, while loans grew 11.5 percent.

The bank, meanwhile, approved the declaration of a P12 per share cash dividend worth a total P1.287 billion to holders of 107.26 million outstanding shares, as well as a 10-percent stock dividend.

“The dividends are subject to approval by the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission and the Philippine Stock Exchange,” it said.

For the whole of 2010, China Bank reported a net income of P5 billion, or 21.86 percent higher from P4.103 billion in 2009, on loans and trading gains.

Fee-based businesses such as bancassurance, private banking, cash management and remittances also contributed to the earnings growth.

China Bank, a member of the SM Group of Companies, presently operates a branch network of 269 and 440 ATMs nationwide, including thrift bank ChinaBank Savings.