MANILA, Philippines - China Banking Corp. has reported a 7.55-percent decrease in net income in the first nine months of 2011 to P3.38 billion from P3.66 billion in the same period in 2010.
The bank, a member of the SM Group of Companies, attributed the lower earnings to the drop in trading and foreign currency exchange gains.
“Nonetheless, return on equity (ROE) remained healthy at 13.95 percent and return on assets (ROA) at 1.91 percent,” Ricardo R. Chua, executive vice president and chief operating officer of China Bank, said.
He added that China Bank remains with one of the best cost-to-income ratios of 55.43 percent, despite its ongoing branch expansion program. The only major bank in full expansion mode since 2006 when it had 141 branches at that time, China Bank has added 145 branches so far — including the branches from its acquisition of Manila Bank.
Its total branch network now number 286, complemented by 476 ATMs nationwide.
So far, 17 branches were opened this year — 10 for the main bank and seven for the savings bank, with eight more slated for opening this last quarter. China Bank’s target is to build up the branch network to 400 by 2014.
“We continue to be optimistic about our performance as we pursue our expansion program. We have new key people on board and exciting developments are forthcoming,” said Chua.
Loan growth ballooned 20.84 percent over 2010, expanding to P127.91 billion, growing strong across all fronts: corporates at 21 percent, commercial at 32 percent, and consumer at 10 percent.
Net interest income slightly grew by 1.21 percent to P6.44 billion, while other income (recurring) improved 3.57 percent to P1.62 billion driven by higher revenues from acquired assets and trust operations, as well as bancassurance, which grew a hefty 54 percent with strong indications that growth for the whole year will exceed expectations.