China Banking Corp. (Chinabank), a member of the SM Group, reported that 2025 was another banner year, with core businesses boosting net income by 13 percent to a record ₱28 billion from the previous all-time high of ₱24.8 billion hit in 2024.

This is the bank’s 11th consecutive year of posting record profits, with the winning streak starting in 2015 at ₱5.6 billion.

In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Feb. 26, the bank said its core lending business served as a primary engine for growth, with interest income climbing 12 percent to ₱105.2 billion, fueled by strong demand across various loan segments.

Meanwhile, sustained deposit growth and a more favorable deposit mix helped temper the increase in interest expense. This allowed the bank to maintain a healthy net interest margin (NIM) of 4.6 percent.

Fee-based income also improved, partly attributed to sustained growth in transactional fees, trust fees, and bancassurance commissions. As a result, total operating income jumped 16 percent to ₱75.7 billion.

Gross loans, which hit the ₱1-trillion mark for the first time, increased 13 percent to ₱1.1 trillion on strong demand from both corporate and consumer segments.

During the year, Chinabank demonstrated greater prudence while maintaining asset quality.

Although the non-performing loans (NPL) ratio remained steady at 1.6 percent, the bank more than doubled its safety net, setting aside ₱7 billion in credit provisions. This proactive move resulted in an NPL coverage ratio of 109 percent, well above the industry average.

Operationally, the bank saw its cost-to-income ratio improve to 45 percent. Total operating expenses (opex) grew 12 percent to ₱34.4 billion, driven by higher manpower costs, taxes, and information technology (IT) spending.

Total assets rose eight percent to ₱1.8 trillion, further solidifying Chinabank’s position as the country’s fourth-largest private universal bank. On the funding side, deposits grew nine percent to ₱1.4 trillion, supported by a current account and savings account (CASA) ratio of 48 percent.

The bank ended the year with a fortified capital position, up 13 percent to ₱191.3 billion. This strength is reflected in a common equity tier 1 (CET1) ratio of 15.2 percent and a total capital adequacy ratio (CAR) of 16.1 percent, providing a significant buffer to support the bank’s long-term strategic objectives.