MANILA, Philippines — China Bank Savings Inc. (CBS) is doubling its credit provisions this year as it braces for a weaker market, while keeping its branch expansion program on track to strengthen its retail banking presence.
CBS president James Christian Dee said the thrift banking arm of China Banking Corp. remains cautious despite recent developments that could help calm markets, including the signing of a peace deal in the Middle East.
“We’re still quite cautious. Versus last year, as mentioned during the presentation, we’re actually doubling our credit provisions this year,” Dee said during a press conference following the bank’s annual stockholders’ meeting.
“Fortunately, our top line revenues are actually almost 20 to 30 percent better than last year and this allowed us to set aside more provisioning,” he said. “We’ll continue with that until maybe a few more months as we see how the economy performs.”
The lender saw its net income rise by 11 percent to P2.41 billion last year from P2.17 billion in 2024, driven by steady growth in its core lending business, marking the fifth straight year of record-high profits.
The Sy-owned thrift bank is also targeting to raise its loan loss coverage ratio to 90-100 percent over the next three to five years as part of efforts to safeguard asset quality.
CBS chairman Ricardo Chua said the bank expects loan growth to remain modest as elevated prices and higher interest rates weigh on demand.