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In line with its commitment to employee development and talent mobility, Chinabank renewed its engagement with LinkedIn for enterprise learning and hiring solutions. The contract signing took place on June 27 at the Chinabank Academy in Makati City. Chinabank Chief Finance Officer Patrick Cheng and LinkedIn Learning APAC Head Georgina O’Brien (4th and 5th from left, respectively) sign the…

Chinabank’s 9-month net income reaches P16.2B

China Banking Corporation (Chinabank, PSE stock symbol: CHIB) recorded P16.2 billion in net income from January to September 2023, 10% higher compared to the same period last year.  This translated to a return on equity of 15.6% and a return on assets of 1.6%.  

Chinabank’s bottom line in the last nine months improved on the back of robust growth from core businesses and lower loan loss provisions.  For the third quarter alone, the bank netted P5.4 billion in profits, up 16% from the same period last year. 

“Chinabank’s sustained growth reflects the successful execution of our business strategies.  Despite the current high interest rate environment, we continue to grow our bottom line by preserving our margins, managing our overall costs effectively, and bringing greater efficiencies to our operations with technology,” Chinabank President & CEO Romeo D. Uyan, Jr. said.

Net interest income grew by 16% to P39.2 billion as the 44% surge in top line revenues cushioned the nearly triple increase in interest expense. Net interest margin was maintained at 4.2%.  

The bank reduced its total credit provisions to P1.3 billion given its stable portfolio quality. Despite this, non-performing loans (NPL) cover remained better-than-industry at 126%.     

Operating expenses increased by 14% to P20.5 billion, driven by higher manpower and inflation-related expenses and bigger volume and revenue-related taxes.  Cost-to-income ratio remained healthy at 50%.   

Chinabank remains as the 4th largest private domestic bank with total assets of P1.4 trillion, up 11% year-on-year.    

Gross loans grew by 10% year-on-year to P765 billion, driven by the 19% expansion in consumer loans, particularly teachers’ loans and credit cards. The bank’s level of bad loans continued to be manageable, posting a better-than-industry average NPL ratio of 2.2%.  

Total deposits increased by 14% to P1.1 trillion resulting to a 49% CASA ratio as term deposits grew year-on-year.

"Our balance sheet remains strong.  A quality loan book has helped us during a period of rising interest rates.  We also continued to optimize our capital structure, maintaining strong capital generation and asset quality,” Chinabank CFO Patrick D. Cheng said.   

Total capital grew by 7% to P141 billion, with Common Equity Tier 1 Ratio at 14.9% and Total Capital Adequacy Ratio at 15.8%, well above the minimum regulatory requirement. Book value per share was at P52.50, up 7%. 

Filipino banking firm, ChinaBank has joined forces with Qatar National Bank (QNB) to facilitate direct transfer from Qatar to the Philippines using the RippleNet payment solution. ChinaBank said the collaboration is aimed at providing improved financial services to Filipino that have been deployed to work overseas post-Covid 19. With Ripple’s On-Demand Liquidity (ODL), both banks can enable…