China Bank profit rises to P11 billion

MANILA, Philippines — Earnings of China Banking Corp. went up by seven percent to nearly P11 billion in the first semester on the back of higher revenues and lower credit provisions.

In a regulatory filing, the listed bank said net income rose seven percent to P10.8 billion in January to June as revenues increased eight percent to P27.2 billion.

China Bank president and CEO Romeo Uyan Jr. noted that the bank sustained its strong performance due to disciplined operational execution.

China Bank chief finance officer Patrick Cheng added that the bank’s “balance sheet is in great shape,” with an improved liquidity ratio of 45 percent.

“The strength of our balance sheet means we are well placed to take advantage of the growth opportunities, deliver sustainable returns to our shareholders, and more importantly, continue supporting our customers and the broader economy,” Cheng said.

The bank’s performance for the first half translated to a return on equity of 15.9 percent and a return on assets of 1.6 percent.

The Sy-led bank reported a 16 percent improvement in net interest income to P25.5 billion in the first half as the growth in the top line revenues managed to offset higher interest expense.

Further, the bank’s loan book grew by 11 percent to P726 billion as consumer loans jumped by 20 percent while business loans increased by eight percent.

As the economy recovers, China Bank’s provision for potential loan losses fell by 47 percent to P878 million.

Despite the solid loans growth, asset quality remained stable, with the non-performing ratio easing to 2.2 percent, which was lower than the latest industry average.

Operating expenses went up by 22 percent to P13.6 billion as the bank continued to invest on human resource development and digital innovation, along with higher volume and revenue-related taxes.

China Bank saw its total resources grow by 15 percent to P1.4 trillion as its deposit base expanded by 19 percent to P1.1 trillion. The bank remains to be the country’s fourth largest among private domestic banks.

China Bank’s capitalization increased by nine percent to P139 billion, with a common equity tier 1 ratio of 15.2 percent and total capital adequacy ratio of 16.1 percent, both above the thresholds set by regulators.