Chinabank three-quarter bottom line rose 10%
China Banking Corp. recorded higher earnings in the first nine months as loan demand increased among its clients.
In a statement on Thursday, the Sy family-led company said consolidated net income in the period reached P20.2 billion, up 10 percent from a year ago.
It also booked robust gross loans, jumping 14 percent to P994 billion as more companies and individual clients borrowed money.
As a result, net interest income rose 15 percent to P53.5 billion. Its net interest margin also remained healthy at 4.6 percent.
This development came as the central bank reduced its benchmark rate four times so far this year. This could prompt consumers and businesses to avail loans with cheaper rates.
Despite the acceleration of its lending business, the nonperforming loans ratio, which measures a bank’s asset quality, eased to 1.6 percent.
Fee-based income, which covers service charges, likewise grew to P3.1 billion.
Deposits also increased by 9 percent to P1.4 trillion, fueled by a 12-percent growth in checking and savings accounts.
The company’s overall performance resulted in a return on equity of 15.3 percent.
The group’s capital adequacy ratio stood at 15.8 percent and common equity tier 1 ratio at 15 percent, well above regulatory requirements.
The lender’s operating expenses, meanwhile, went up by 15 percent to P25.3 billion as it invested more in manpower and technology.
As of September, Chinabank’s total assets stood at P1.7 trillion, making it the fourth largest private bank in the Philippines.
Chinabank is one of the banking units of SM Investments Corp., one of the Philippines’ major conglomerates. It has a total of 647 branches across the country.
Earlier this year, the bank said it would raise up to P100 billion via the bond market and commercial papers in the next three years to finance its expansion plans.
Chinabank has also been boosting its investment in digital infrastructure to get more clients.
