CHINA BANKING Corp. posted a net profit of P3.21 billion in the first nine months, up 40.7 percent from a year ago, on double-digit expansion in interest earnings and income from treasury dealings and sale of foreclosed assets.

The country’s ninth biggest bank in assets, which is majority controlled by tycoon Henry Sy, recorded a 15.53-percent return on equity and a 2.02-percent return on assets, among the highest in the local banking industry.

The bank’s robust growth was driven by a 22.8-percent increase in revenues to P13.02 billion.

Net interest revenues before loan-loss provisioning grew 29.5 percent, driven by stronger lending and improved margins arising from continued growth in low-cost deposits.

Non-interest revenues also surged 68.4 percent, boosted by higher trading and foreign exchange gains as well as revenues from the disposal of acquired assets.

The bank also improved its cost-efficiency even as it spent more money for the largest branch expansion program in its 89-year history coupled with fresh investments in more automated teller machines and new technology platforms. China Bank now spends P0.56 centavos to earn every P1, lower than the 59 centavos in the same period last year.