ChinaBank makes P4.2 B in first half

Published August 8, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

China Banking Corporation posted an 18 percent jump in consolidated profits to P4.2 billion for the first semester of the year.

In a disclosure to the Philippine Stock Exchange, the bank said “sustained loans and deposits build-up and greater contribution from fee-based businesses resulted to improved earnings.”

Net interest income rose 6 percent to P11.7 billion, driven by double-digit growth in loans and securities. Meanwhile, fee-based income grew better than expected, by 61 percent to P3.4 billion, from higher trading gains and service fees and commissions.

“Our strong financial performance in the first half reflects our good fundamentals that provide the foundation for sustainable growth,” said China Bank President William C. Whang.

He added that, “as we continue to build on our strengths, we are confident about meeting our goals for the year and delivering value to our customers and other stakeholders.”

Total resources stood at P908 billion, 18 percent higher year-on-year. Deposits grew 15 percent to P750 billion, underpinned by a 15 percent increase in CASA (checking and savings accounts).

Gross loans reached P533 billion, up 12 percent, driven by stronger demand across all customer segments.

Despite the sustained loans growth, non-performing loans (NPL) ratio improved to 1.2 percent from 1.5 percent, while NPL coverage expanded to 148 percent.

Total capital funds rose 8 percent to P90.4 billion. The Bank’s CET 1/ Tier 1 and total capital adequacy ratios stood at 12.9 percent and 13.8 percent, respectively.