Sy-led China Banking Corp. continued its quarterly income growth streak in 2022, pushing up earnings in the first half by 39 percent to P10.1 billion.
China Bank, part of the Sy family’s SM Group, said gains were driven by higher interest income and a sharp drop in expenses for bad debts.
The lender saw a P5-billion earnings boost in the second quarter alone, the largest in its centurylong history, chief finance officer Patrick Cheng said in a statement on Thursday.
“Throughout the pandemic, the bank has consistently recorded quarterly income growth,” China Bank added.
During the semester, net interest income added 16 percent to P22 billion on strong revenue growth and the “steady movement in interest expenses.”
Thus, net interest margin was maintained at 4.3 percent while the decline in trading and foreign exchange gains weakened fee-based income to P3.2 billion.
China Bank said core fee income increased 24 percent from gains in service charges, fees and commissions, income from sale of acquired assets, and bank assurance.
“The sustained growth puts China Bank in a stronger position to support customers and the economy in this period of recovery,” company president William C. Whang said in the statement.
Meanwhile, credit provisions fell 69 percent to P1.7 billion while gross nonperforming loans (NPL) ratio stood at 2.3 percent, which was 120 basis points lower versus last year.
NPL cover remained sufficient and above industry at 128 percent. China Bank also ended the period with a cost-to-income ratio of 44 percent.
At end-June, consolidated assets expanded 17 percent to P1.2 trillion while loans were up 14 percent to P655 billion “on the back of significant growth” in both business and consumer borrowings.
Total deposits also increased 14 percent to P945 billion amid a 14-percent growth in current and savings accounts.
Total equity jumped 16 percent to P127 billion with common equity tier 1 ratio and total capital adequacy ratio of 14.8 percent and 15.7 percent, respectively, the statement showed.