China Bank’s first quarter income up
Sy family-led China Banking Corp. recorded at P4.9 billion net income in the first quarter of the year in line with the economy’s recovery from the COVID-19 pandemic.
In a statement last week, China Bank said the quarterly profit represented a 37-percent growth from the same period last year.
Net interest income during the period was up 15 percent to P10.8 billion while net interest margin rose to 4.3 percent. The lender said gains were supposed by higher earning assets and lower interest costs.
“China Bank’s organic growth momentum continues—loans and deposits are up, expenses are down, and credit quality remains solid,” William Whang, president of China Bank, said in the statement.
Moreover, expenses for credit losses fell 65 percent to P780 million given the “improved macroeconomic outlook.” It said nonperforming loan coverage was thus raised to 119 percent. China Bank noted a drop in trading gains, which brought fee-based income to P1.7 billion. Lastly, the lender shaved off 8 percent in operating expenses, bringing its cost efficiency ratio to 46 percent.
“Our effective asset-liability management and solid capital structure have allowed clients to access our balance sheet and enabled us to achieve better-than-industry growths in assets, loans, and equity,” China Bank chief finance officer Patrick Cheng said in the same statement.
China Bank said total assets expanded 12 percent to P1.1 trillion. Asset quality remained “healthy” as nonperforming loans ratio was steady at 2.5 percent during the quarter, which the lender said was “still lower than industry average.”
During its annual stockholders’ meeting last week, China Bank declared total cash dividends of about P4 billion, up by 50 percent from the previous year. This comprised a P1.50 per share regular snd special dividend.
Shareholders of record on May 20 would receive their payments on June 3 this year.
