MANILA, Philippines — Sy family-led China Banking Corp. grew net profit in the first three months by 24 percent year-on-year to P1.9 billion on higher interest income, fee-based earnings, treasury gains, and sale of idle assets.
“We are gratified that our first quarter results reflect the sustained growth in our businesses and the result of various initiatives,” China Bank president William Whang said in a press statement on Friday.
The bank’s net interest income for the first quarter grew by 12 percent year-on-year to P5.9 billion, driven by the 41-percent jump in interest revenues from loans.
China Bank also booked a 52-percent year-on-year increase in non-interest income to P1.3 billion as fees, service charges, and commissions surged by 34 percent. The bank also recognized income from the sale of acquired assets and positive trading and securities gains.
Higher interest expense, however, compressed net interest margin to 2.94 percent.
Total first-quarter operating income reached P7.2 billion, up 18 percent year-on-year, while total operating expense increased by 13 percent to P4.8 billion as the bank continued to strengthen and expand its operations.