Chinabank raises dividends to P6.7 billion

MANILA, Philippines — After posting solid earnings in 2024, Sy-led China Banking Corp. is rewarding shareholders with a total cash dividend of P6.7 billion this year, 14-percent higher than the P5.9 billion distributed last year.

In a disclosure to the local bourse, the bank announced that its board of directors has approved a P1.50 per share regular dividend and an additional P1 per share special dividend, payable on May 22, to shareholders of record as of May 9.

The P1.50 regular dividend is a 25-percent increase from the P1.20 paid in 2024, reflecting Chinabank’s strong financial performance and commitment to shareholder returns.

“Chinabank has a history of regular dividend payments, demonstrating its financial strength and commitment to maximizing shareholder value,” the bank said in a statement.

Last year, the bank paid P5.9 billion in cash dividends, consisting of P1.20 per share regular cash dividend and an additional P1 per share special cash dividend.

Based on Chinabank’s April 23 closing price of P89.55, the 2025 cash dividends translate to a 2.8-percent yield, offering investors a modest return relative to the stock price. In simple terms, for every P100 invested in the stock, shareholders would earn P2.80 in dividends over the year.

The bank is also allocating 27 percent of its 2024 net income to dividends, known as the payout ratio, while retaining the rest for business growth and other uses.

Higher core business revenues boosted the net income of Chinabank by 13 percent to hit another record high of P24.8 billion in 2024. This translated to a return on equity of 15.6 percent and return on assets of 1.6 percent.

Credit rating agency Moody’s Investors Service reaffirmed Chinabank’s investment grade rating of “Baa2” with a stable outlook in April 2024, citing the bank’s robust capitalization, profitability and liquidity.

Chinabank has consistently paid both regular and special dividends in recent years, signaling management confidence in its long-term growth and earnings visibility.