Chinabank profit rises to P6.8 billion in Q1

MANILA, Philippines — China Banking Corp. posted a modest increase in first-quarter earnings, supported by sustained loan expansion and higher interest income, even as the bank continued to invest in technology and growth initiatives.

In a statement, the Sy-led bank said its net income reached P6.8 billion in the first three months, up by four percent from a year earlier, translating to a return on equity of 14.2 percent and return on assets of 1.5 percent, among the highest in the industry.

The earnings growth was largely driven by net interest income, which climbed by 14 percent year-on-year to P19.5 billion, benefiting from higher revenues and lower interest expenses. This pushed the bank’s net interest margin up by 12 basis points to 4.61 percent.

Chinabank’s balance sheet continued to expand, with total assets rising by 12 percent to P1.9 trillion, supported by what it described as a “strategic build-up of high-quality earning assets.”

Gross loans surged by 16 percent to P1.1 trillion, reflecting strong demand from both corporate and consumer borrowers.

On the funding side, deposits grew by 13 percent to P1.5 trillion, with low-cost checking and savings accounts increasing by 20 percent, lifting the bank’s CASA ratio to 48 percent from 46 percent a year ago.

Despite higher spending, the bank maintained cost efficiency. Operating expenses rose by five percent to P8.8 billion, largely due to continued investments in human capital and digital transformation, but the cost-to-income ratio remained manageable at 49 percent.

Asset quality also stayed stable, with the non-performing loan ratio at 1.6 percent. The bank boosted its loan loss provisions to P684 million, resulting in a non-performing loan coverage ratio of 110 percent, above industry average levels.

Chinabank’s capital position strengthened during the period, with total equity increasing by 10 percent to P192.3 billion. Book value per share likewise rose 10 percent to P71.42.

Chinabank, the country’s fourth-largest private universal bank, said its first-quarter performance reflects “sustained core business strength and stable asset quality,” even as it continues to balance growth investments with profitability.