Chinabank achieved a significant milestone with its earnings
The Sy-led China Banking Corporation (Chinabank) reported a remarkable 15 percent growth in net income, reaching a record P22 billion last year, compared to P19.1 billion in 2022. This growth was primarily driven by higher core business revenues, demonstrating the bank’s robust performance and stability in the financial sector.
In a disclosure to the Philippine Stock Exchange (PSE), Chinabank highlighted its strong financial metrics, with a return on equity of 15.5 percent and a return on assets of 1.6 percent, which are among the best in the industry. Chinabank President and CEO Romeo D. Uyan Jr. emphasized the bank’s solid position as one of the top four banks in the country and reiterated their commitment to executing business strategies while leveraging digitalization to enhance customer services.
The bank’s net interest income increased by 17 percent to P53.5 billion, driven by growth in loans and investments, despite higher interest expenses. Net interest margin was maintained at 4.2 percent. Furthermore, the improving economic conditions allowed the bank to reduce loan loss provisions to P1.2 billion, while maintaining stable asset quality with a 2.5 percent non-performing loan (NPL) ratio and sufficient NPL coverage at 104 percent.
Operating expenses increased by 11 percent to P27 billion, attributed to volume-related taxes and investments in manpower and IT. However, Chinabank remains committed to enhancing operational efficiency, with a cost-to-income ratio of 50 percent.
Chinabank is also undergoing substantial IT architecture overhauls as part of its digital transformation efforts. Total assets reached P1.5 trillion, marking an 11 percent increase and solidifying its position as the fourth largest privately-owned domestic bank. Gross loans grew by 10 percent to P791 billion, with consumer loans accounting for 23 percent of the total loan portfolio.
On the funding side, total deposits rose by 11 percent to P1.2 trillion, with a CASA ratio of 48 percent. Total equity increased by 12 percent to P150 billion, with capital ratios well above regulatory requirements, including a 15.3 percent common equity tier 1 ratio and a 16.1 percent total capital adequacy ratio.
Chinabank’s Chief Finance Officer Patrick D. Cheng highlighted the bank’s drive for operational efficiency and strong client demand as key factors contributing to its solid financial performance in 2023. Looking ahead, the bank remains focused on strengthening its business fundamentals and capabilities to sustain growth momentum in the coming years.
Business News: Chinabank achieved a significant milestone with its earnings
