China Banking Corporation (Chinabank), a lender controlled by the Sy and Dee families, saw its net income reach a record high P11.4 billion in January to June 2024, up 6 percent from P10.8 billion in the same period last year on the back of stronger core lending and deposit-taking activities. 

In a disclosure to the Philippine Stock Exchange, the bank said this translated to a return on equity of 15.1 percent and a return on assets of 1.5 percent, still among the highest in the industry.

“Our business performance continued to improve during the first half of the year,” Chinabank President and CEO Romeo D. Uyan Jr. said. 

He noted that, “The continued growth of our core lending and deposit taking businesses, combined with stable asset credit quality and controlled operating costs, allowed us to register our highest first half net income to date, solidifying our position as one of the top four banks in the country.”

Net interest income hit P30.4 billion, up 19 percent year-on-year as higher interest income offset the rise in interest expense, resulting in a 25-basis point improvement in net interest margin to 4.4 percent.

Credit quality improved amid significant loan expansion, with a better-than-industry non-performing loan (NPL) ratio of 1.9 percent. Chinabank booked lower credit provisions at P737 million but NPL coverage remained above industry at 141 percent.

Operating expenses went up by five percent to P14.1 billion mainly on higher volume-related taxes. Cost-to-income ratio slightly improved to 49 percent.

Chinabank said it is still the country’s fourth largest private universal bank, with total assets of P1.5 trillion, up 12 percent. 

Gross loans increased by 10 percent to P817 billion on strong demand across market segments. Consumer loans, which accounted for a quarter of the bank’s total loan portfolio, increased by 25 percent. 

Meanwhile, deposits grew faster than the industry average to P1.3 trillion, up 14 percent. The balance sheet expansion was supported by a 10 percent hike in capital to P152 billion. 

The bank’s CET1/Tier 1 ratio of 14.5 percent and total capital adequacy ratio of 15.3 percent remained well above regulatory requirements. Book value per share increased by 10 percent year-on-year to P56.42.

“This solid financial performance, backed by strong capital and liquidity, reflects CBC’s inherent financial strength, prudent risk management, and sharpened customer focus,” Chinabank Chief Finance Officer Patrick D. Cheng said.