China Bank net up 15% to P1.39B

China Banking Corp. grew its net income by 15 percent year-on-year to P1.39 billion in the first quarter on the back of double-digit growth in revenue.

In a statement, the bank said net revenue before operating expenses increased by a tenth to P5.27 billion while net interest revenue rose 6 percent to P3.92 billion amid an 11-percent growth in loan portfolio.

Non-interest revenue jumped 27 percent to P1.35 billion as the bank booked higher trading gains, grew trust fees by over a third, and generated more income from asset sales.

While the bank sustained network expansion and launched new products, operating expenses rose by a slower 8.9 percent to P3.6 billion.

Loans grew 11 percent to P318 billion, with two-thirds of the growth contributed by the commercial and consumer segments, China Bank said.

Its consolidated consumer loan portfolio expanded by 23 percent, boosted by a 24-percent rise in housing loans and an 18-percent increase in auto loans.

“We are gratified with the double-digit growth in our first-quarter results. Our strategic thrusts of sustaining our core businesses and strengthening our fee-based businesses even as we continue to expand our network are starting to bear fruit,” China Bank president and CEO Ricardo R. Chua said.

The bank marked milestones last year, including the completion of the merger of Plantersbank and China Bank Savings, the incorporation of China Bank Capital investment banking subsidiary, the launch of China Bank credit cards, the first full year of operations of its bancassurance partnership Manulife China Bank Life and the implementation of a robust core banking platform, Chua said.

During its stockholders’ meeting Thursday, the bank declared a 10-percent or P1 per share cash dividend totaling P1.85 billion, a third of the 2015 net income of P5.61 billion, and an 8-percent stock dividend, with payment targeted on June 3.Ben de Vera