Chinabank posts P5.9-B net income for Q1, boosted by core business

CHINA BANKING Corp. (Chinabank) posted an 18% increase in its net profit to P5.9 billion in the first quarter amid “robust” core business growth, it said on Monday.

The bank’s first-quarter performance translated to a return on equity and return on assets of 15.5% and 1.6%, respectively, it said in a disclosure to the stock exchange.

Its financial statement was unavailable as of press time.

“We are focused on sustaining our growth trajectory. Our good first-quarter results provide the momentum to achieving our ambitious goals and targets,” Chinabank President and Chief Executive Officer Romeo D. Uyan, Jr. said in a statement.

“From compelling product innovations to reimagined customer-facing solutions, to the adoption of a new bank logo, exciting things are happening in Chinabank,” he added.

The listed lender’s net interest income grew by 18% to P15 billion last quarter amid higher asset yields and loan volume.

Chinabank’s net interest margin improved by 22 basis points to 4.4%, it said.

Meanwhile, operating expenses grew by 6% year on year to P7.2 billion in the first quarter.

It also set aside “reduced” provisions of P302 million in the quarter “as economic conditions continued to improve,” Chinabank said.

This resulted in a cost-to-income ratio of 48%.

The bank’s loans grew by 11% to P805 billion at end-March, driven by strong demand from both businesses and consumers, it said.

Still, its nonperforming loan (NPL) ratio stood at just 1.8%, while NPL coverage was at 143%.

“On the funding side, total deposits expanded by 13% to P1.2 trillion,” Chinabank said.

The bank’s assets grew by 11% to P1.5 trillion at end-March.

Total capital likewise rose by 11% to P154 billion in the period.

The bank’s common equity Tier 1 ratio stood at 15.3%, while its total capital adequacy ratio was at 16.2%.

Chinabank said its book value per share improved by 11% to P57.35.

“With our strong balance sheet and capital position, we can sufficiently fund our growth plans in the years ahead,” Chinabank Chief Finance Officer Patrick D. Cheng said.

The bank has 648 branches and 1,071 automated teller machines (ATMs) to date, including the 168 branches and 203 ATMs of Chinabank Savings.

Chinabank announced during its 2024 annual stockholders’ meeting that cash dividends rose by 16% to an all-time high of P5.9 billion from the previous year.

This represented 27% of its 2023 net income of P22 billion. The bank’s stockholders on record as of May 3 will receive P1.20 per share regular cash dividend and an additional P1 per share special cash dividend on May 16.

Chinabank’s shares rose by 40 centavos or 1.06% to end at P38.20 apiece on Monday. — Aaron Michael C. Sy