China Bank nets P6.45B

Sy family-led China Banking Corp. grew net profit last year by 15 percent to P6.45 billion on higher interest earnings, fee-based revenues and treasury gains.

Reporting sustained growth in core businesses across all market segments, China Bank disclosed to the Philippine Stock Exchange on Monday that its earnings performance last year translated to a return on equity of 10.4 percent and return on assets of 1.16 percent.

China Bank president and chief executive officer Ricardo Chua said: “Our 2016 results reflect the teamwork and dedication of everyone in the China Bank group to achieve significant growth in the major market segments – corporate, middle market and entrepreneurs – where we are traditionally strong and establishing a stronger presence in the consumer segment, and more recently in the capital markets.”

Net interest income grew by 11 percent to P16.69 billion, attributed to the 12.5-percent rise in interest revenue from loans to P17.89 billion.

Fee-based revenues improved by 14 percent to P5.09 billion, bolstered by trading gains and robust growth in revenues from service charges and fees, trust fees and gains on sale of acquired assets.

Trading gains surged to P918.09 million, nearly doubling the P466.83 million windfall last year.

On the other hand, operating expense growth was capped at 7.9 percent even with the continued expansion in its branch and distribution network and continued investments in people and
technology to support the growth of new businesses.

Total assets grew 20 percent to P633.2 billion, as loans and deposits grew faster than industry.

China Bank grew its loan book by 24 percent to P393.74 billion, led by the 27-percent growth in consumer loans.

On the funding side, total deposits rose by 23 percent to P541.6 billion, driven by the 21-percent growth in low-cost deposits to P276.4 billion. The bank said this reflected the strength its franchise
boosted by deposit growth from new branches. Low cost-deposits now stood at 51 percent of total deposits.

For every peso of deposits generated by the bank, it turned 71.4 centavos into earning assets in the form loans.