China Banking Corporation (Chinabank) is planning to raise up to P100 billion over the next three years through the issuance of retail bonds and commercial papers.

In a disclosure to the Philippine Stock Exchange (PSE), the bank announced its board of directors approved the plan to conduct a fundraising exercise in several tranches, issuing retail bonds, commercial papers, or a combination of both.

“The proceeds shall be used to support the Bank's strategic initiatives and expansion programs,” Chinabank said.

Chinabank reported a 13 percent growth in net income to a record P18.4 billion in the first nine months of 2024 from P16.2 billion in the same period last year, driven by sustained growth in core businesses.

The bank's return on equity stands at 15.7 percent, with a return on assets of 1.6 percent, positioning it among the industry's highest.

“This record performance is the result of the hard work of our employees, the continued execution of our strategies, and our steadfast focus on the needs of our customers,” said CBC President and Chief Executive Officer Romeo D. Uyan Jr.

Total operating income increased by 14 percent year-on-year to P46.3 billion, fueled by higher interest income from loans, securities, and other investments, along with growth in transaction-based income. Net interest margin also improved to 4.4 percent.

CBC's loan portfolio grew by 14 percent to P871.6 billion, reflecting the bank's prudent response to increased demand for credit from both businesses and consumers.

Asset quality also showed improvement, with the non-performing loans (NPL) ratio decreasing to 1.8 percent. Despite increased credit provisions, NPL cover reached 141 percent, exceeding the industry average.

Operating expenses were managed effectively, limited to a 9 percent increase despite higher volume-related taxes. The cost-to-income ratio remained at 48 percent.

"We sustained our strong asset expansion and continued to be very purposeful in using CBC’s resources to pursue our growth plans and to boost our capabilities to better serve our customers,” said Chinabank Chief Finance Officer Patrick D. Cheng. “The improving macro trends and supportive regulatory environment will help the bank’s performance," he added.

As of end of September, CBC's total assets expanded by 13 percent to P1.6 trillion. Total deposits also grew by 13 percent, reaching P1.3 trillion.

Total capital increased by 15 percent to P162.7 billion, with a common equity tier 1 ratio of 14.8 percent and a total capital adequacy ratio of 15.7 percent, comfortably surpassing regulatory requirements. Book value per share rose by 15 percent to P60.43.