China Bank earnings grow 21% to ₱6.7 B

Published November 5, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola
China Banking Corporation (China Bank) posted a 21 percent hike in consolidated net income to ₱6.7 billion in the first nine months of 2019 from the ₱5.6 billion for the same period last year as it continued to achieve strong core income growth.

In a disclosure to the Philippine Stock Exchange, the bank said that, for the third quarter of 2019 alone, net earnings hit ₱2.5 billion, 25 percent more versus the third quarter of 2018.

Net interest income for the nine-month period rose 9 percent year-on-year to ₱18.7 billion, accounting for 78 percent of the Bank’s total operating income of ₱23.8 billion, up 15 percent. Net interest margin improved to 3.29 percent.
China Bank’s loan portfolio expanded 10 percent to ₱552.5 billion as demand across market segments steadily increased.

Asset quality remained healthy amid the loans growth, with a non-performing loan (NPL) ratio of 1.4 percent and NPL cover at 122 percent.

Meanwhile, non-interest income surged 43 percent to ₱5.2 billion driven mainly by service charges, fees and commissions, as well as trading and securities gains.

Operating expenses increased 19 percent to ₱15.6 billion as the Bank continued to upgrade and expand its systems, processes, infrastructure, and manpower.

On the funding side, total deposits jumped 12 percent to ₱777.2 billion. The bank successfully raised ₱30 billion via retail bond offer and ₱7.5 billion via the issuance of green bonds which helped improve funding flexibility.

China Bank is on track to achieve its goal of becoming a ₱1-trillion bank on its 100thanniversary in 2020, registering 17 percent growth in assets to ₱953.9 billion as of end-September 2019.

Total capital funds stood at ₱92.9 billion, up 8 percent, with a total capital adequacy ratio of 13.6 percent and common equity tier 1 ratio of 12.7 percent.