Chinabank netted record P13B in H1
Better macroeconomic conditions boosted the first-semester profit of China Banking Corp. (Chinabank) to a record-high P13 billion. This represented a 14-percent climb, with the bank expecting to sustain growth throughout the year.
In a regulatory filing on Thursday, the Sy family-led bank also reported that its revenues in the January to June period had surged by 34 percent to P38.9 billion.
According to Chinabank, this was on the back of a 15-percent jump in net interest income, which reached P34.9 billion.
An increase in both consumer and corporate loans pushed the bank’s gross loans to an 18-percent rise to P964.7 billion. This, as an improved macroeconomic environment boosted customers’ spending power.
Despite the robust loan growth, the nonperforming loans ratio, which measures a bank’s asset quality, eased to 1.6 percent from 1.9 percent previously.
“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 CEO Romeo Uyan Jr. said.
“We are sustaining our growth momentum as we execute our strategy and focus on delivering quality service and value to our clients and stakeholders,” he added.
Operating expenses jumped by 17.7 percent to P16.6 billion as Chinabank recorded higher technology, manpower and business volume-related costs. Cost-to-income ratio improved to 43 percent from 49 percent in the same period last year.
As of end-June, the assets of the country’s fifth-largest bank reached P1.7 trillion.
Its overall performance resulted in a return on equity of 15.2 percent, up from 15.1 percent.
Earlier, Chinabank said it was betting on its investment in digital infrastructure to attract more clients and fuel growth this year.
In January, the company launched its redesigned My CBC mobile application to update its services and keep up with growing smartphone usage in the country.
