China Banking Corporation (Chinabank), the country’s fourth largest private bank, is reaping the fruits of its digital transformation as it has been a key growth driver leading to the improvement in first quarter profits.

In a disclosure to the Philippine Stock Exchange, the bank said it sustained its momentum from strong core business growth, posting ₱6.5 billion in net income in the first quarter of 2025, up 10 percentfrom the same period last year.

The robust performance translated to a return on equity of 15.1 percent and a return on assets of 1.6 percent, still among the highest in the industry.

“Our first quarter results reflect the fruits of the concerted efforts across all our different businesses to drive organic growth and support our customers,” Chinabank President and CEO Romeo D. Uyan Jr. said.

Chinabank Chief Finance Officer Patrick D. Cheng highlighted the bank’s ongoing digital transformation as a key growth driver.

"We expect to provide better service, expand our customer base, and deepen client relationships with the launch earlier this year of our enhanced mobile app, My CBC, and other digital initiatives in the pipeline,” he added.

Total revenues reached ₱16.3 billion, up eight percent year-on-year as net interest income jumped by 14 percent to ₱17.1 billion, driven by higher asset yields and loan volume which offset increased interest expenses. Net interest margin remained at a healthy 4.5 percent.

Operating expenses went up by 17 percent to ₱8.4 billion driven by continued investments to boost its digital, infrastructure, and talent capabilities.

Total assets increased by 10 percent to ₱1.7 trillion, cementing Chinabank’s position as the fourth largest private universal bank in the Philippines. Gross loans hit ₱954 billion, up 19 percent on brisk lending to businesses and consumers.

The bank maintained its strong asset quality, recording a better-than-industry non-performing loan (NPL) ratio of 1.5 percent. Consequently, the bank reduced its credit provision by six percent to ₱285 million.

NPL coverage remained adequate at 112 percent from the previous quarter's 108 percent, in line with the updated BSP guidelines that exclude provisions appropriated to Retained Earnings.

Under the previous reporting guidelines, NPL coverage would have been higher at 143 percent from the previous quarter's 139 percent.

On the funding side, the bank generated eight percent more deposits to ₱1.3 trillion, underpinned by the sustained increase in checking and savings accounts (CASA) and time deposits.