Chinabank bets on digital to boost growth
China Banking Corp. (Chinabank) is betting on its investment in digital infrastructure to attract more clients and fuel growth this year. This, especially after posting higher first-quarter earnings.
“We expect to provide better service, expand our customer base and deepen client relationships with the launch earlier this year of our enhanced mobile app, My CBC, and other digital initiatives in the pipeline,” Chinabank chief finance officer Patrick Cheng said in a statement on Friday.
Chinabank grew its profit in the first three months of the year by 10 percent to P6.5 billion, owing to its loan book expansion.
Higher asset yields and loan volume resulted in a 14-percent jump in net interest income to P17.1 billion.
This offset a 17-percent increase in operating expenses to P8.4 billion associated with Chinabank’s investments in digital, infrastructure and talent capabilities, the bank said.
Chinabank launched its redesigned My CBC mobile application in January. It cited the need to update its services to keep up with growing smartphone usage in the country.
Meanwhile, gross loans climbed by 19 percent to P954 billion due mainly to higher business and consumer lending.
Even then, Chinabank’s nonperforming loan ratio, a key measure of asset quality, eased to 1.5 percent from 1.8 percent in the same period last year.
However, the bank noted that its interest expenses also increased by a fifth to P8.2 billion. This resulted in its return on equity settling at 15.1 percent from 15.5 percent.
Deposits grew by 8 percent to P1.3 trillion, driven by checking and savings accounts as well as time deposits.
