China Bank’s 2012 profit flat at P5 B

MANILA, Philippines—The Sy family-led China Banking Corp. chalked up a consolidated net profit of P5 billion last year, flat compared to the previous year as its thrift bank subsidiary gnawed at overall profitability.

But China Bank sustained a return on equity of 12.39 percent and return on assets of 1.72 percent for the year.

Last year’s earnings were fueled by a 29 percent increase in loans to P198 billion, which grew 50 percent faster than the industry. Lending grew across all market segments—up 36 percent in commercial, 28 percent in consumer and 27 percent in corporate loans—cushioning the impact of lower yields and thinning margins.

Profits were also boosted by hefty trading and securities gains, expanding by 98.6 percent to P2.92 billion.

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