China Bank Savings sees loan book growth of 20%
The thrift banking arm of Sy family-led China Banking Corp. is eyeing to grow its loan portfolio by 20 percent this year with help from retail borrowers and small and medium enterprises.
China Bank Savings (CBS) president James Dee, in a press briefing on Thursday, told reporters they were channeling funds for teacher’s loans, housing loans and auto loans, among others.
“So all of these we try to allocate resources to continue the growth trajectory for the next five years,” he said.
The lender grew its loan portfolio by 21 percent to P135.5 billion last year.
Even with the increase in credit, Dee said nonperforming loan (NPL) ratio—or the portion of outstanding loans yet to be repaid—has remained stable.
He said NPL ratio stood at 2.75 percent, which was markedly lower compared to “near double-digit numbers” about five years ago or during the pandemic when borrowers financially struggled to meet deadlines for loan payments.
“We try to address the issues at the source. So before we give away loans, we always make sure that the borrowers have the capacity to pay and also provide all of the necessary documentation to prove their eligibility,” he added.
While the bank is optimistic, CBS chair Ricardo Chua warned the war between Israel and Iran could stoke inflation.
“This is likely to cause a spike in oil prices, which can trigger another round of inflation,” he said.
A higher inflation reading forces central banks into increasing interest rates to cool down prices. In turn, loans would become more expensive.
