China Bank H1 earnings jump 39% on record Q2
![China Bank H1 earnings jump 39% on record Q2](https://media.philstar.com/photos/2022/07/28/chinabank2022-05-1518-16-29_2022-07-28_23-31-19.jpg)
MANILA, Philippines — China Banking Corp. boosted its earnings by 39 percent to P10.1 billion in the first half, from P7.3 billion in the same period last year, after hitting a record P5 billion in the second quarter.
Lower provisions, as well as higher net interest income and core fee income, fueled the strong performance of the listed bank in the first semester of the year.
“The sustained growth puts China Bank in a stronger position to support customers and the economy in this period of recovery,” China Bank president William Whang said.
The robust income performance translated to a better return on equity and return on assets at 16.4 percent from 13.4 percent, and 1.7 percent from 1.4 percent, respectively.
Net interest income rose 16 percent to P22 billion from P18.9 billion on the back of stronger top line revenues and steady movement in interest expense. As a result, net interest margin was maintained at 4.3 percent.
Fee-based income plunged 46 percent to P3.2 billion from January to June this year compared to P5.9 billion in the same period last year amid the decline in trading and foreign exchange gains.
Nevertheless, core fee income increased 24 percent, driven mainly by double-digit growths in service charges, fees, and commissions, income from sale of acquired assets, and bancassurance.
As a result, the bank’s total revenues inched up by two percent to P25.2 billion in the first semester from a year-ago level of P24.8 billion. On the other hand, its operating expenses was steady at P11.1 billion.
Reflecting its positive economic outlook and its improving asset quality, the bank’s provision for impairment and credit losses plunged by 69 percent to P1.7 billion from P5.4 billion as gross non-performing loans (NPL) ratio improved to 2.3 percent from P3.5 percent.
- Latest
- Trending