Chinabank net income jumps 18% to P5.9B in Q1

China Banking Corporation (Chinabank, PSE symbol: CHIB) earned P5.9 billion in the first quarter of 2024, 18% higher compared to the same period last year, on the robust growth of its core businesses. The resulting return on equity and return on assets continued to be among the best in the industry at 15.5% and 1.6%, respectively.

Net interest income grew by 18% to P15.0 billion, driven by higher asset yields and loan volume. Net interest margin improved by 22 basis points to 4.4%.

Provisions for loan losses were reduced to P302 million as economic conditions continued to improve. The growth of operating expenses was controlled at 6% to P7.2 billion, translating to a better cost-to-income ratio of 48%.

“We are focused on sustaining our growth trajectory. Our good first quarter results provide the momentum to achieving our ambitious goals and targets,” Chinabank President & Chief Executive Officer Romeo D. Uyan Jr. said.

The country’s fourth-largest private lender recently launched a brand refresh campaign to make its brand and image more resonant and engaging to a new generation of customers.

“From compelling product innovations to reimagined customer-facing solutions, to the adoption of a new bank logo, exciting things are happening in Chinabank,” Uyan added.

Chinabank’s total assets grew by 11% to P1.5 trillion. Its gross loans increased by 11% to P805 billion on strong loan demand from businesses and consumers. Nonetheless, credit quality was kept in check, with non-performing loans (NPL) ratio easing to 1.8% and NPL coverage improving to 143%. On the funding side, total deposits expanded by 13% to P1.2 trillion.

The bank’s capital rose by 11% to P154 billion, with a common equity tier 1 (CET-1) ratio of 15.3% and total capital adequacy ratio (CAR) of 16.2%—both well above the regulatory minimums. Book value per share improved by 11% to P57.35.

“With our strong balance sheet and capital position, we can sufficiently fund our growth plans in the years ahead,” Chief Finance Officer Patrick D. Cheng said.

At its 2024 Annual Stockholders’ Meeting recently, Chinabank announced an all-time high cash dividend of P5.9 billion, 16% higher vs. last year, representing 27% of its 2023 net income of P22.0 billion. The bank’s stockholders on record as of May 3, 2024 will receive P1.20 per share regular cash dividend and an additional P1.00 per share special cash dividend on May 16, 2024.

Chinabank maintained its Baa2 deposit and issuer ratings—a notch above investment grade—with stable outlook, from Moodys’ Investors’ Service. The bank, distinguished by the People Management Association of the Philippines as the 2023 Employer of the Year, and by the Institute of Corporate Directors as a two-time Five-Golden Arrow Awardee, was also recently recognized by the CFA Society Philippines for its Chinabank Dollar Fixed Income Fund, named for the 8th time as the Best Managed Fund of the Year in its category. (PR)

Chinabank’s 9-month net income reaches P16.2B

• 15.6% ROE and 1.6% ROA, still among the highest in the industry
• Sustained core business strength and stable asset quality: 2.2% NPL ratio and 126% NPL cover, both better than the industry average. 
• Healthy cost-to-income ratio despite higher investments in technology and manpower development. 
• Book value per share (BVS) grew 7% to P52.50.

China Banking Corporation (Chinabank, PSE stock symbol: CHIB) recorded P16.2 billion in net income from January to September 2023, 10% higher compared to the same period last year.  This translated to a return on equity of 15.6% and a return on assets of 1.6%.  

Chinabank’s bottom line in the last nine months improved on the back of robust growth from core businesses and lower loan loss provisions.  For the third quarter alone, the bank netted P5.4 billion in profits, up 16% from the same period last year. 

“Chinabank’s sustained growth reflects the successful execution of our business strategies.  Despite the current high interest rate environment, we continue to grow our bottom line by preserving our margins, managing our overall costs effectively, and bringing greater efficiencies to our operations with technology,” Chinabank President & CEO Romeo D. Uyan, Jr. said.

Net interest income grew by 16% to P39.2 billion as the 44% surge in top line revenues cushioned the nearly triple increase in interest expense. Net interest margin was maintained at 4.2%.  

The bank reduced its total credit provisions to P1.3 billion given its stable portfolio quality. Despite this, non-performing loans (NPL) cover remained better-than-industry at 126%.     

Operating expenses increased by 14% to P20.5 billion, driven by higher manpower and inflation-related expenses and bigger volume and revenue-related taxes.  Cost-to-income ratio remained healthy at 50%. 

Chinabank remains as the 4^th largest private domestic bank with total assets of P1.4 trillion, up 11% year-on-year.    

Gross loans grew by 10% year-on-year to P765 billion, driven by the 19% expansion in consumer loans, particularly teachers’ loans and credit cards. The bank’s level of bad loans continued to be manageable, posting a better-than-industry average NPL ratio of 2.2%.  

Total deposits increased by 14% to P1.1 trillion resulting to a 49% CASA ratio as term deposits grew year-on-year.

"Our balance sheet remains strong.  A quality loan book has helped us during a period of rising interest rates.  We also continued to optimize our capital structure, maintaining strong capital generation and asset quality,” Chinabank CFO Patrick D. Cheng said.   

Total capital grew by 7% to P141 billion, with Common Equity Tier 1 Ratio at 14.9% and Total Capital Adequacy Ratio at 15.8%, well above the minimum regulatory requirement. Book value per share was at P52.50, up 7%. 

Chinabank was recently named by the People Management Association of the Philippines as the 2023 Employer of the Year, the only bank to win the prestigious award in 30 years. This recognition for the bank's outstanding human resources practices comes in the heels of its latest accolades: Outstanding Wealth Management Service for the Affluent Award from the Private Banker International and Five-Golden Arrow Award from the Institute of Corporate Directors, the second time Chinabank has won this distinction for its excellence in corporate governance. 

 

 

About Chinabank: Chinabank opened for business on August 16, 1920 in Binondo, Manila, and is now one of the largest private universal banks in the Philippines. It provides a full range of banking products and services to corporate, commercial, and retail customers through 644 branches and 1,068 ATMs to date, including the 165 branches and 201 ATMs of its savings bank arm CBS. Chinabank also offers a wide range of allied financial services through its subsidiaries Chinabank Capital, Chinabank Securities, Chinabank Insurance Brokers, and affiliate Manulife China Bank Life. Visit www.chinabank.ph