China Bank: FY2025 in line; Q1 2026 softer on non-core
From AB Capital's The Opening Bell: Three Moves
Event
FY25 net income P28 billion (+13% YoY) came in in line with AB Cap forecasts, with strong 4Q exit; 1Q26 at P6.8 billion (+4% YoY) was in line (23% of FY26) with variance due to weaker non-interest income.
View
Core engine remains solid (loans + margins). NII +14% YoY, driven by double-digit loan growth (16%) and NIM expansion (4.6%), highlighting strength of the core lending franchise.
Catalyst
Non-interest income continues to dilute earnings quality. FX/treasury losses (incl. swap-related funding costs) remain the main drag, masking otherwise healthy operating trends. CIR 45%, NPL 1.6%, and ROE 14-16%, indicating disciplined cost control and stable asset quality.
Action
Overall high-quality, consistent earnings story trading at sub-1x P/B / low P/E, leaving room for re-rating.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
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