China Banking Corporation (CBC or Chinabank) booked a 13 percent growth in net income to a record P18.4 billion in January to September 2024 from P16.2 billion in the same period last year on the back of sustained strong growth from core businesses.

In a disclosure to the Philippine Stock Exchange (PSE), the bank reported a return on equity of 15.7 percent and a return on assets of 1.6 percent—figures that remain among the highest in the industry.

"This record performance is the result of the hard work of our employees, the continued execution of our strategies, and our steadfast focus on the needs of our customers," said CBC President and CEO Romeo D. Uyan Jr.

The bank's total operating income rose by 14 percent year-on-year to P46.3 billion, fueled by higher interest income from loans, securities, and other investments, along with growth in transaction-based income. Net interest margin also improved to 4.4 percent.

CBC's loan portfolio reached P871.6 billion, a 14 percent increase, as the bank responded prudently to increased demand for credit from both businesses and consumers.

Asset quality also showed improvement, with the non-performing loans (NPL) ratio decreasing to 1.8 percent. Despite this, credit provisions were increased by 15 percent to P1.5 billion due to the bank's conservative provisioning policy. This resulted in an NPL cover of 141 percent, exceeding the industry average.

Operating expenses were managed effectively, limited to a nine percent increase, reaching P22 billion. This was achieved through careful spending despite higher volume-related taxes. The cost-to-income ratio stood at 48 percent.

"We sustained our strong asset expansion and remained focused on utilizing CBC's resources to pursue our growth plans and enhance our capabilities to better serve our customers," Chinabank Chief Finance Officer Patrick D. Cheng stated, adding that "the improving macroeconomic trends and supportive regulatory environment will contribute positively to the bank's performance."

As the country's fourth-largest private domestic bank, CBC's total assets grew by 13 percent to P1.6 trillion as of the end of September. Total deposits increased by 13 percent to P1.3 trillion.

Total capital reached P162.7 billion, a 15 percent increase. The Common Equity Tier 1 Ratio was 14.8 percent, and the Total Capital Adequacy Ratio was 15.7 percent, both well above the regulatory minimum. Book value per share also increased by 15 percent to P60.43.