CBS boosts loan, deposit portfolio in end-September

MANILA, Philippines - The first nine months of 2015 saw the loan portfolio of China Savings Bank (CBS) expand nine percent to P49.7 billion and total deposits hitting P63.9 billion.

Both figures place the thrift arm of the China Banking Corp. (China Bank) in solid fourth among the country’s 28 thrift banks in both categories.

Total assets grew to P71.5 billion and capital base amounting to P4.1 billion at the end of September this year.

In terms of assets, CBS cemented its place as fourth best but the bank settled for seventh overall. In the capital to asset base category, it settled for sixth best.

Nonetheless, the potential for growth is high with its branch network of 165 and an expanding loan portfolio.

Of the total loan portfolio, 65 percent are devoted to the SME segment and the remaining 35 percent in consumer loans. Bulk of consumer loans are auto loans followed by mortgage and developer loans.

The Bangko Sentral ng Pilipinas (BSP) just months back approved the integration of acquired Planters Development Bank (Planters Bank). Prior to the absorption of the acquired bank’s portfolio, consumer loans accounted for roughly 70 percent of portfolio.

And just last month, the Insurance Commission and the BSP approved the thrift bank’s application to sell insurance products.

That should result in increased fee-based earnings for the expanding bank.

Manulife China Bank Life Assurance Corp. (MCBL), the joint venture bancassurance partner of China Bank, will likewise produce life insurance products for the retail market base of CBS.

Recently, China Bank reported an eight percent rise in profits in the first nine months, driven by stronger lending and lower cost of funding.

Consolidated net income amounted to P3.65 billion from January to September.

Net loans grew five percent to P287.43 billion as consumer loans jumped 24 percent while commercial loans went up by 11 percent.

Total deposits inched up two percent to P392.1 billion, resulting in a common equity Tier 1 ratio of 13.21 percent and capital adequacy ratio of 14.13 percent.

Combined branch network reached 493, and aspiration to hit 700 in the next two years. The original target ending this year is a combined network of 500.