China Bank bucks downtrend, posts 27% profit growth in Q2
SM group-led China Banking Corp. grew its second quarter net profit by 27 percent year-on-year to P3 billion, bucking the downturn seen by other banking peers amid constraints arising from the coronavirus pandemic.
This brought six-month net profit to P5.2 billion, up by 24 percent year-on-year, even as the bank jacked up provisions for probable credit losses.
China Bank ramped up provisions by more than 14 times to P4.8 billion from the year-ago level to brace for the impact of COVID-19 and ongoing quarantine measures on asset quality.
“Our first half results reflect China Bank’s continued strength and resilience, and demonstrate the soundness of our strategies to thrive in the new normal. I am very grateful to our employees for their dedication and flexibility and to our customers for their continued trust and patronage,” China Bank president William Whang said in a press statement.
“The year 2020 will go down in China Bank’s history, not just for our centennial anniversary, but for our resolve to make the best out of a very difficult situation, keeping in mind the safety and welfare of our stakeholders,” he said.
China Bank’s total operating income rose by 40 percent year-on-year to P21 billion during the first semester.
Operating expenses increased by 5 percent to P10.4 billion mainly from COVID-19 and higher volume related expenses.
“While the long-term impact of the global pandemic on the Philippine economy and banking industry remains uncertain, we are confident that China Bank’s enduring financial strength will enable us to navigate the new or even the next normal,” said China Bank chief finance officer Patrick Cheng. —DORIS DUMLAO-ABADILLA
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