The profits marked a 14-percent increase from last year and translated to a return on equity of 15.2 percent and return on assets of 1.6 percent—among the highest in the banking industry.
Total revenues jumped 34 percent year-on-year to P38.9 billion, led by a 15-percent growth in net interest income to P34.9 billion. Higher loan volumes and better asset yields pushed net interest margin to 4.57 percent.
“We continue to deliver strong operating results in the first semester while supporting the needs of our customers and contributing to the growth of our economy,” said Chinabank president and CEO Romeo D. Uyan Jr.
“We are sustaining our growth momentum as we execute our strategy and focus on delivering quality service and value to our clients and stakeholders,” Uyan added.
Loans near P1-trillion mark
Gross loans rose 18 percent to P964.7 billion, driven by robust consumer and corporate credit demand. Even with a low non-performing loan ratio of 1.6 percent—well below the industry average—Chinabank booked higher provisions of P6.5 billion, raising NPL coverage to 125 percent.
Deposits grew by 5 percent to P1.3 trillion, led by a 10 percent increase in checking and savings accounts. On the cost side, operating expenses rose to P16.6 billion on the back of higher technology and manpower spending, but the bank still posted an improved cost-to-income ratio of 43 percent.
“Our robust performance was driven by our commitment to addressing client needs while effectively managing risks and promoting efficiencies. We have ensured that our balance sheet remains strong. Additionally, the recent accolades we received recognize Chinabank’s customer focus and banking excellence,” said chief finance officer Patrick D. Cheng.
Chinabank ended June with P1.7 trillion in consolidated assets, up 8 percent. Total equity climbed 15 percent to P174 billion, with capital adequacy ratio at 15.62 percent and book value per share rising 15 percent to P64.65.
—Edited by Miguel R. Camus
