China Banking Corp.’s first-quarter profit rose 4 percent to P6.8 billion even as it sharply increased credit provisions by about 140 percent to P684, signaling a more cautious stance despite strong core growth.
Net interest income climbed 14 percent to P19.5 billion, lifting net interest margin by 12 basis points to 4.61 percent.
This remained the key earnings driver as the country’s fourth-larges private bank, backed by the Sy family’s SM Group, benefited from higher revenues and lower funding costs.
Operating expenses rose 5 percent to P8.8 billion due to continued investments in technology and workforce expansion. Still, efficiency held steady, with the cost-to-income ratio at 49 percent.
Total assets expanded 12 percent to P1.9 trillion, keeping Chinabank among the country’s largest private universal banks. Gross loans jumped 16 percent to P1.1 trillion, supported by demand across corporate and consumer segments.
Deposits increased 13 percent to P1.5 trillion, with checking and savings accounts growing faster at 20 percent. This pushed the current and savings account ratio to 48 percent from 46 percent a year earlier, improving funding quality.
Asset quality remained stable, with a non-performing loan ratio of 1.6 percent. Coverage stood at 110 percent, above industry norms, even as the bank boosted provisioning.
Equity rose 10 percent to P192.3 billion, lifting book value per share to P71.42.
Shareholders approved P7.5 billion in dividends, including a P1.8 regular payout and P1 special dividend, up 12 percent from last year, reflecting sustained earnings strength and solid capital levels.
—Edited by Miguel R. Camus
