CHINA BANKING CORP. (Chinabank) saw its net income climb by 14% year on year in the first half on continued core business growth.
The listed bank’s net income was at P13 billion in the six months through June, it said in a disclosure to the stock exchange on Thursday.
This translated to a return on equity of 15.2% and a return on assets of 1.6%.
“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,” Chinabank President and Chief Executive Officer Romeo D. Uyan, Jr. said in a statement. “We are sustaining our growth momentum as we execute our strategy and focus on delivering quality service and value to our clients and stakeholders.”
“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,” Chinabank Chief Finance Officer Patrick D. Cheng said.
The bank’s financial statement was unavailable as of press time.
Chinabank’s revenues surged by 34% year on year to P38.9 billion in the first semester.
This was driven mainly by the 15% increase in its net interest income to P34.9 billion, which it said came on the back of higher asset yields and loan volume.
Its net interest margin improved by 13 basis points to 4.57%.
Meanwhile, the bank’s operating expenses reached P16.6 billion in the first half as it saw higher technology, manpower, and business volume-related costs.
“With revenue growth outpacing rising expenditures, Chinabank recorded a healthier cost-to-income ratio of 43%,” it said.
Gross loans rose by 18% year on year to P964.7 billion at end-June “amid the accelerating economic activities and increasing consumer confidence” that led to increased credit extended to the consumer and corporate segments.
Chinabank also set aside loan loss provisions amounting to P6.5 billion in the period.
Its nonperforming loan ratio was at 1.6%, while NPL coverage ratio was at 125%.
On the funding side, total deposits rose by 5% to P1.3 trillion as of June, driven by the 10% growth in its checking and savings accounts.
Chinabank’s consolidated assets expanded by 8% year on year to P1.7 trillion at end-June.
Total equity also went up by 15% to P174 billion.
Its capital adequacy ratio was at 15.62%.
Book value per share increased by 15% to P64.65.
The bank’s consolidated network is made up of 650 branches and 1,109 automated teller machines.
It also offers other financial services through its subsidiaries, including China Bank Savings, Inc., Chinabank Capital Corp., and Chinabank Securities Corp.
Chinabank’s shares went up by P1 or 1.55% to close at P65.50 each on Thursday. — Aaron Michael C. Sy
