Chinabank earnings hit record high P22 B
The Sy-led China Banking Corporation (Chinabank) reported a 15 percent growth in net income to a record P22 billion last year from P19.1 billion in 2022 due to higher core business revenues.
In a disclosure to the Philippine Stock Exchange (PSE), the bank said its earnings translated to a return on equity of 15.5 percent and return on assets of 1.6 percent—still among the best in the industry.
“Our strong growth in 2023 solidifies our position as one of the top four banks in the country,” Chinabank President and CEO Romeo D. Uyan Jr. said.
He added that “we remain focused on executing our business strategies while leveraging our investments in digitalization to deliver better services to our customers.”
Net interest income rose 17 percent to P53.5 billion as the strong growth in loans and investments offset the significantly higher interest expense. Net interest margin was maintained at 4.2 percent.
With the improving economic conditions, the bank reduced loan loss provisions to P1.2 billion. Asset quality was stable with a 2.5 percent non-performing loan (NPL) ratio while NPL coverage remained sufficient at 104 percent.
Operating expenses were 11 percent higher at P27 billion on bigger volume-related taxes and heavier investments in manpower and IT.
Simultaneously, substantial overhauls are underway within Chinabank's IT architecture as an integral component of its ongoing digital transformation endeavors. Cost-to-income ratio was at 50 percent.
Total assets hit P1.5 trillion, up 11 percent, still the fourth largest among privately-owned domestic banks.
Gross loans grew by 10 percent to P791 billion, with the share of consumer loans to the total loan portfolio now at 23 percent. On the funding side, total deposits rose 11 percent to P1.2 trillion with CASA ratio at 48 percent.
Total equity stood at P150 billion, up 12 percent, with capital ratios well above the regulatory minimum: 15.3 percent common equity tier 1 ratio; and 16.1 percent total capital adequacy ratio.
“Our continuous drive for operational efficiency and the strong client demand for our services underpin our solid financial performance in 2023. We will continue to strengthen our business fundamentals and capabilities to sustain our growth momentum in the coming years,” Chinabank Chief Finance Officer Patrick D. Cheng said.