China Bank income rises to nearly P15 billion
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MANILA, Philippines — China Banking Corp.’s net income rose by 31 percent to P14.7 billion in the first nine months from P11.2 billion in the same period last year on the back of higher top line revenues.
The bank’s total revenues increased by 15 percent to P42 billion from P36.6 billion in the same period last year
China Bank chief finance officer Patrick Cheng said the bank enjoyed a stronger demand for corporate and consumer loans, causing a 14 percent increase in gross loans to P697 billion.
“While there is continuous demand for loans, growth for the third quarter has been more measured in the light of current macroeconomic conditions,” Cheng said.
Meanwhile, the nine-month performance resulted in a better return on equity and return on assets at 15.6 percent and 1.6 percent, respectively.
Net interest income picked up by 17 percent to P33.7 billion amid a higher volume of earning assets which offset higher interest expense due to rate hikes here and abroad.
As a result, net interest margin was maintained at 4.2 percent.
Likewise, fee-based income improved by six percent to P8.3 billion as of end-September, supported by the continued recovery in core revenue streams, including service charges, fees and commissions, income from the sale of acquired assets, and bancassurance.
On the other hand, China Bank reported that its operating expenses rose by eight percent to P18 billion as an effect of elevated domestic inflation and the continued weakening of peso against the dollar.
Even as gross non-performing loans (NPL) ratio eased to two percent, the bank hiked its credit provisions by seven percent to P6.9 billion for an NPL coverage of 161 percent, well above the industry average.
China Bank’s total assets stood at P1.3 trillion during the period.
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