The Sy family’s China Banking Corp. (Chinabank) reported a record net income of P11.4 billion during the first semester of 2024, a 6 percent increase driven by stronger lending and deposit activities.
This resulted in a return on equity of 15.1 percent and a return on assets of 1.5 percent, both among the highest in the industry.
Chinabank, which celebrates its 104th anniversary on August 16, recently completed a brand refresh.
Strong core business
Chinabank, the fourth-biggest private bank in the country, saw net interest income rise by 19 percent year-on-year to P30.4 billion, driven by higher interest income which offset increased interest expenses. This led to a 25-basis point rise in net interest margin to 4.4 percent.
Credit quality saw improvements with a non-performing loan (NPL) ratio of 1.9 percent, better than the industry average. CBC’s credit provisions were reduced to P737 million, while NPL coverage stayed high at 141 percent.
Management’s view
“The continued growth of our core lending and deposit-taking businesses, combined with stable asset credit quality and controlled operating costs, allowed us to register our highest 1st half net income to date, solidifying our position as one of the top four banks in the country,” said Chinabank president and CEO Romeo D. Uyan Jr.
Chinabank chief finance officer Patrick D. Cheng also weighed in.
“This strong financial performance, supported by robust capital and liquidity, highlights CBC’s financial strength, prudent risk management, and customer focus,” he said.
Asset growth
Operating expenses increased by 5 percent to P14.1 billion, mainly due to higher volume-related taxes. However, the cost-to-income ratio slightly improved to 49 percent.
Chinabank’s total assets rose 12 percent to P1.5 trillion, with gross loans up 10 percent to P817 billion, consumer loans up 25 percent, and deposits up 14 percent to P1.3 trillion, outpacing the industry average.
