China Banking Corporation, a member of the SM Group, reported an 18 percent growth in net income to P5.9 billion in the first quarter of 2024 compared to the same period last year, on the robust growth of its core businesses.
In a disclosure to the Philippine Stock Exchange, the bank said the resulting return on equity and return on assets continued to be among the best in the industry at 15.5 percent and 1.6 percent, respectively.
Net interest income grew by 18 percent to P15.0 billion, driven by higher asset yields and loan volume. Net interest margin improved by 22 basis points to 4.4 percent.
Provisions for loan losses were reduced to P302 million as economic conditions continued to improve while the growth of operating expenses was controlled at 6 percent to P7.2 billion, translating to a better cost-to-income ratio of 48 percent.
“We are focused on sustaining our growth trajectory. Our good first quarter results provide the momentum to achieving our ambitious goals and targets,” Chinabank President and CEO Romeo D. Uyan Jr. said.
The country’s fourth-largest private lender said its total assets grew by 11 percent to P1.5 trillion. Its gross loans increased by 11 percent to P805 billion on strong loan demand from businesses and consumers.
Nonetheless, credit quality was kept in check, with non-performing loans (NPL) ratio easing to 1.8 percent and NPL coverage improving to 143 percent. On the funding side, total deposits expanded by 13 percent to P1.2 trillion.
The bank’s capital rose by 11 percent to P154 billion, with a common equity tier 1 (CET-1) ratio of 15.3 percent and total capital adequacy ratio (CAR) of 16.2 percent—both well above the regulatory minimums. Book value per share improved by 11 percent to P57.35.
“With our strong balance sheet and capital position, we can sufficiently fund our growth plans in the years ahead,” Chinabank Chief Finance Officer Patrick D. Cheng said.
At its 2024 Annual Stockholders’ Meeting recently, Chinabank announced an all-time high cash dividends of P5.9 billion, 16 percent higher versus last year, representing 27 percent of its 2023 net income of P22.0 billion.
The bank’s stockholders on record as of May 3, 2024 will receive P1.20 per share regular cash dividend and an additional P1.00 per share special cash dividend on May 16, 2024.