China Bank to infuse P2 billion in thrift bank arm

MANILA, Philippines — Listed China Banking Corp. is infusing an additional P2 billion to its thrift banking arm to bankroll sustained loan expansion and boost its ability to serve more segments of the banking population.

Based on its financial statement, the Sy-led bank’s board of directors approved the capital infusion to China Bank Savings Inc. (CBSI) on Aug. 2 in order to support its “sustained loan expansion and enhance its ability to cover and serve more segments of the banking and unbanked population.”

In 2007, China Bank acquired the 87.51 percent stake of the Puyat family in the Manila Banking Corp. that was renamed to CBSI the following year. It has since emerged as a leading thrift bank in the country after mergers with Unity Bank in 2012 and Planters Development Bank in 2014.

Based on data from the Bangko Sentral ng Pilipinas (BSP), CBSI is the third largest thrift bank in terms of assets with P132.68 billion and fifth in terms of capital at P14.08 billion as of end March this year.

Amidst elevated inflation and slowing economic growth, CBSI president James Christian Dee remains optimistic as the bank’s net income grew by 15 percent and exceeded its target by four percent.

CBSI chairman Ricardo Chua is also confident the bank will continue its strong performance in the second half of 2023, with its focus on customer centric initiatives.

“I believe we can overcome all of these if we have a strong, cohesive and well-prepared organization, an organization that is focused and engaged with our customers, one that is not only good in bringing excellent banking services to them but also one that is ready for the digital economy,” Chua said.