MANILA, Philippines - China Banking Corp. recorded an eight percent rise in profits in the first nine months on the back of higher interest earnings.
China Bank’s consolidated net income amounted to P3.65 billion from January to September, driven by stronger lending and lower cost of funding.
The Sy-led bank reported its net interest income grew eight percent to P11.17 billion in the first nine months as revenues from loans rose eight percent.
On the other hand, interest expense declined six percent as a significant block of high cost funds or time deposits were shifted to low-cost checking and savings accounts.
China Bank said its net interest margin improved to 3.36 percent in end September from 3.23 percent in end September last year.
The bank’s non-interest income slipped three percent to P2.96 billion as trading gains from investment securities fell five percent to P365.22 million in the first nine months.
The 15 percent rise in earnings from service charges, fees, and commissions to P1.38 billion from January to September was not enough to offset the decline in trading gains.
China Bank reported its total operating income grew five percent to P14.12 billion, while operating expenses rose six percent to P9.21 billion even as the it continued to strengthen its operations with new technologies and more branches, ATMs, and employees.
The total assets of the Sy-owned bank expanded four percent to P472.06 billion in tandem with the growth of the bank’s core businesses.
The bank said its net loans grew five percent to P287.43 billion in the first nine months as consumer loans jumped 24 percent while commercial loans went up by 11 percent.
It added total deposits inched up by two percent to P392.1 billion as checking and savings accounts grew 16 percent to P218.1 billion, resulting in a common equity tier 1 ratio of 13.21 percent and capital adequacy ratio of 14.13 percent.
China Bank offers a wide range of financial products and services through 493 branches including those of subsidiaries China Bank Savings Inc. and Planters Development Bank.