China Banking Corp. (Chinabank), a member of the SM Group, reported a 14-percent growth in net income to a record ₱13 billion in the first six months of 2025 over the same period last year on the back of strong core business growth.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its profit translated to a 15.2-percent return on equity and a 1.6-percent return on assets—among the highest in the industry.

The bank’s total revenues rose by 34 percent year-on-year to ₱38.9 billion, mainly from net interest income which grew by 15 percent to ₱34.9 billion on higher asset yields and loan volume. Net interest margin improved by 13 basis points (bps) to 4.57 percent.

“We continue to deliver strong operating results in the first semester while supporting the needs of our customers and contributing to the growth of our economy,” Chinabank President and Chief Executive Officer (CEO) Romeo D. Uyan Jr. said.

Credit extended to the consumer and corporate segments increased by 18 percent as Chinabank’s gross loans hit ₱964.7 billion amid the accelerating economic activities and increasing consumer confidence.

“Our robust performance was driven by our commitment to addressing client needs while effectively managing risks and promoting efficiencies. We have ensured that our balance sheet remains strong,” Chinabank Chief Finance Officer (CFO) Patrick D. Cheng said.

Despite a lower non-performing loans (NPL) ratio of 1.6 percent, well below the industry average of 3.5 percent, the bank proactively set aside higher credit provisions of ₱6.5 billion for an NPL coverage of 125 percent, higher than the industry average of 95 percent.

The loans growth was funded by deposits, which increased by five percent to ₱1.3 trillion, underpinned by a 10-percent growth in checking and savings accounts.

“We are sustaining our growth momentum as we execute our strategy and focus on delivering quality service and value to our clients and stakeholders,” Uyan said.

In the six-month period, operating expenses (opex) reached ₱16.6 billion on higher technology, manpower, and business volume-related costs. With revenue growth outpacing rising expenditures, Chinabank recorded a healthier cost-to-income ratio of 43 percent.

Total consolidated assets reached ₱1.7 trillion, marking an eight-percent increase from the same period last year. Total equity grew by 15 percent to ₱174 billion.

The bank’s capital adequacy ratio (CAR) stood at 15.62 percent, well above the minimum regulatory requirement. Book value per share increased by 15 percent to ₱64.65.