MANILA -Sy-led China Banking Corp. saw heathy profit growth during the first semester of 2023 on robust consumer and business loans.
Net income from January to June reached P10.8 billion, up 7 percent from the same period last year.
Chinabank, the country’s fourth-biggest private lender, said return on equity stood at 15.9 percent with a return on assets of 1.6 percent.
It closed the period with total assets of P1.4 trillion, up 15 percent. Deposits expanded by 19 percent to P1.1 trillion. However, the ratio of current account and savings account deposits declined to 49 percent due to the growth in time deposits, impacting profit margins.
Nevertheless, Chinabank chief financial officer Patrick D. Cheng said the balance sheet remains strong as the lender closed the period with an improved liquidity ratio of 45 percent, meaning it was in a better position to settle financial obligations.
“The strength of our balance sheet means we are well placed to take advantage of the growth opportunities, deliver sustainable returns to our shareholders, and more importantly, continue supporting our customers and the broader economy,” he said on Thursday.
Chinabank said total revenues during the first semester rose 8 percent to P27.2 billion. Net interest income climbed 16 percent to P25.5 billion.
It said net loans reached P726 billion, up 11 percent, due to rising demand from the consumer sector, which grew 20 percent, and business loans, which expanded by 8 percent.
“Despite the solid loans growth, asset quality remained stable, with [non performing loans] ratio easing to 2.2 percent, which was lower than the latest industry average,” Chinabank said.
Loan loss expenses during the semester fell 47 percent to P878 million, it noted. Non-performing loans coverage was also above the industry average at 122 percent.
“Our customer focus and disciplined operational execution enabled us to continue to deliver strong results to all our stakeholders,” said Chinabank president and CEO Romeo D. Uyan Jr.
Total capital reached P139 billion, up 9 percent, during the period. Its common equity tier 1 ratio and total capital adequacy ratio also stood at 15.2 percent and 16.1 percent, respectively, both above the minimum regulatory requirements.