China Bank Savings (CBS), the retail lending arm of the SM Group’s China Banking Corporation, sees enough room for competition in the thrift banking segment, even from BDO Network Bank, as it continues to post strong earnings growth.

In a chat with media after the bank’s annual stockholders’ meeting, CBS President James Christian T. Dee pointed out that BDONB and CSB are both part of the SM Group, “so we actually welcome the entry of BDO Network Bank.”

“And, knowing BDO, I won't be surprised if they will be growing much, much faster over the next few years. But this is actually a welcome development for thrift banks,” he added.

Dee explained that “the thrift banking space is not as big as the commercial banks. So we do actually want stronger and more stable players to come in to make thrift banking more accessible to the unbanked.”

“We normally try to present the thrift banks as those who actually reach out to the unbanked in the more remote areas of the Philippines. So this is something that we welcome more players,” he said.

For his part, CBS chairman Ricardo R. Chua said that, as consumer spending is the major driver of the economy, the consumer side of the banking business may grow significantly over the next few years.

“We have a very young population, everybody wants to work, everybody wants to be productive. So we thought it's a growing market. Having BDO is a welcome development, but it will not derail us from whatever plans we have in growing the bank,” Chua said.

Despite the industry’s growing focus on digital banks, CBS continues to open brick-and-mortar branches nationwide to serve the unbanked market, officials said. It plans to add five more branches this year to its nationwide network of 170 branches, 107 lending centers, and about 250 ATMs.

“Hopefully, by the third or early fourth quarter of this year, we should open an additional five branches. Mostly in the VizMin area. We noted a huge potential in the southern part of the Philippines. We do want to strengthen our network in the southern part of the Philippines,” Dee said.

CBS grew its profit by 23 percent in the first quarter of 2025, building on record-breaking income realized in 2024. Dee said the bank hit a net income of ₱566 million in the first quarter, up 23 percent from the same period in 2024, as total loans expanded to ₱143 billion, while total deposits grew to ₱171 billion.

“First quarter GDP growth of the Philippines, came in at a modest 5.4 percent, reflecting a relatively flat growth trajectory spanning the last three quarters. In spite of this, I am happy to report that CBS has done well to start the year,” Dee said.

He pointed out that, “2024 was another strong year for our Bank, and I am proud to announce that CBS has delivered record-breaking profits for four consecutive years.”

Chua said “CBS is determined to expand our business through loans and CASA growth and to future-proof our organization by focusing on asset quality, digital banking transformation, and the consolidation of our distribution network.”