The country’s fourth largest lender saw net income jump 13 percent to P18.4 billion, translating to a return on equity of 15.7 percent and a return on assets of 1.6 percent, both among the highest in the industry.
Management’s view
“This record performance is the result of the hard work of our employees, the continued execution of our strategies, and our steadfast focus on the needs of our customers,” Chinabank president and CEO Romeo D. Uyan Jr. said in a statement on Thursday.
“We sustained our strong asset expansion and continued to be very purposeful in using [Chinabank's] resources to pursue our growth plans and to boost our capabilities to better serve our customers. The improving macro trends and supportive regulatory environment will help the bank’s performance," chief finance officer Patrick D. Cheng said.
Bank assets grew
Operating income grew 14 percent to P46.3 billion, fueled by higher interest from loans, investments, and more transaction-based income, according to Chinabank.
Loans increased 14 percent to P871.6 billion, boosted by demand from both businesses and consumers. Asset quality improved, with the non-performing loan ratio dropping to 1.8 percent.
Expenses
To stay cautious, Chinabank raised credit provisions by 15 percent, resulting in a strong NPL cover of 141 percent. Operating expenses grew 9 percent but were managed carefully, keeping the cost-to-income ratio at 48 percent.
Total assets rose 13 percent to P1.6 trillion, supported by a 13-percent increase in deposits, which reached P1.3 trillion. Capital expanded 15 percent to P162.7 billion, with key ratios well above regulatory requirements.
