Sy-led China Banking Corporation (Chinabank) has declared an all-time high P5.9 billion in cash dividends to its shareholders, 16 percent more than last year’s cash bonus. 

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its Board of Directors declared a P1.20 per share regular cash dividend and an additional P1.00 per share special cash dividend, payable on May 16, 2024 to all stockholders on record as of May 3, 2024.

The regular cash dividend increased by 20 percent compared to the P1.00 per share the previous year. The total cash dividends of P5.9 billion represent 27 percent of Chinabank’s 2023 record net income of P22.0 billion. 

It translates to a cash dividend yield of 6.0 percent based on the bank’s P36.75 closing stock price as of April 17, 2024. 

“The dividend declaration reflects Chinabank’s commitment to consistently providing good shareholder returns while investing in the continued growth of its business,” the bank said. 

Last year, the bank paid P5.1 billion in cash dividends—P1.00 per share regular cash dividend and P0.90 per share special cash dividend. Chinabank is the fourth largest private domestic bank in the country. 

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.

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.