Chinabank earnings up 13% to record P18.4B
Lower interest rates and a better macroeconomic environment buoyed the nine-month profit of China Banking Corp. to a record-high, with its core businesses registering strong growth.
The Sy family-led bank on Thursday said its bottomline in the January to September period expanded by 13 percent to P18.4 billion.
Total operating income was at P46.3 billion, up by 14 percent on higher interest income from loans, securities and other investments, as well as growth in transaction-based income, according to Chinabank.
Its loan portfolio also jumped by 14 percent to P871.6 billion, owing to heightened demand after the Bangko Sentral ng Pilipinas cut its key rate by 25 basis points in August. This came as inflation cooled, allowing the BSP to ease its policy stance and spur consumer spending.
Chinabank’s nonperforming loans ratio improved to 1.8 percent from 2.2 percent, signaling better asset quality as bad loans declined.
“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,” company president and CEO Romeo Uyan Jr. said in a statement.
Operating expenses saw a “controlled” nine-percent rise to P22 billion, Chinabank said, noting its “careful spending” during the period.
As of end-September, total assets at the country’s fourth-largest private bank reached P1.6 trillion.
Total deposits were higher by 13 percent to P1.3 trillion. Meanwhile, total capital was at P162.7 billion, up by 15 percent.
Chinabank’s financial performance likewise resulted in a return on equity of 15.7 percent from 15.6 percent previously.
”The improving macro trends and supportive regulatory environment will help the bank’s performance,” Chinabank chief finance officer Patrick Cheng said.
Earlier this year, Chinabank underwent a brand refresh in hopes of making its image “more resonant and engaging” to a younger generation of clients.
The bank changed its stock symbol to “CBC” from “CHIB,” which had been its ticker symbol since it debuted on the bourse in 1927.
