China Bank among the strongest lenders in Asia Pacific

Published October 26, 2021, 4:28 PM

by James A. Loyola

Amid the challenges of COVID-19, China Banking Corporation (China Bank) landed in The Asian Banker’s Top 500 Strongest Banks ranking for 2021 as the second strongest bank in the Philippines in terms of balance sheet.

China Bank is also in the top 20 percent of the 500 strongest banks in the Asia Pacific region. The virtual awarding ceremony was held on October 21, 2021.

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The Asian Banker cited China Bank as having the lowest gross non-performing loans (NPL) ratio among Philippine banks included in the Asian Banker 500, at 2.3 percent as of December 2020, while its gross NPL cover exceeded the ideal 100 percent threshold.

“China Bank’s performance not only shows our resilience, but also our improving financial strength,” China Bank Chief Finance Officer Patrick D. Cheng said.

He added that, “We are leveraging our resources and digital capabilities to help our customers weather the impact of the global pandemic and to support economic recovery.”

The Bank achieved higher profitability following a decline in cost-to-income ratio to 49 percent from 59 percent, and an increase in return on assets to 1.2 percent from 1.1 percent.

Apart from the 30 percent rise in net interest income, fee-based income also grew 19 percent on the back of better trading and securities gains.

In addition, the robust capital and liquidity position helped improve overall balance sheet strength.

The Bank’s Common Equity Tier 1 (CET1) ratio and total Capital Adequacy Ratio (CAR) stood at 13.82 percent and 14.73 percent, respectively, as of end-2020.

The Asian Banker rigorously evaluates the financial strength of banks and financial holding companies across the Asia Pacific, Africa, and the Middle East using a detailed and transparent scorecard.

The Asian Banker 500 ranking is widely followed by investors, analysts, and the media as the leading source for the assessment of the financial strength of commercial banks and financial holding companies in the region.

For its Asia Pacific ranking, The Asian Banker covers Australia, Bangladesh, Brunei, Cambodia, China, Hong Kong, India, Indonesia, Japan, Kazakhstan, Macau, Malaysia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam.

The ranking gives a bird’s-eye view of the institutions’ balance sheet growth and profitability against the uncertainties of economic conditions.

 
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