Higher interest earnings lift Chinabank Q1 profit
MANILA, Philippines — The robust performance of core businesses lifted the first-quarter earnings of Sy family-led China Banking Corp. by 18 percent to P5.9 billion.
In a stock exchange disclosure on Monday, Chinabank said net interest income expanded by 18 percent to P15 billion on higher asset yields and loan volume.
The bank’s performance resulted in a return on equity of 15.5 percent, up from 14.7 percent in the same period last year.
Return on assets, meanwhile, inched up to 1.6 percent in the January to March period from 1.5 percent previously.
“We are focused on sustaining our growth trajectory. Our good first quarter results provide the momentum to achieving our ambitious goals and targets,” Chinabank president and CEO Romeo Uyan Jr. said.
Improved margins
Chinabank, the country’s fourth largest private lender, also saw its net interest margin improve by 22 basis points to 4.4 percent.
It likewise recorded a 31.36-percent drop in credit provisions to P302 million on improving economic conditions.
By the end of the quarter, Chinabank’s total assets grew by 11 percent to P1.5 trillion.
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Gross loans rose by 11 percent to P805 billion due to strong demand from both businesses and consumers.
Nonperforming loans (NPL) ratio eased to 1.8 percent from 2.3 percent, while NPL coverage improved to 143 percent from 118 percent.
Chinabank’s capital grew to P154 billion, an 11-percent increase from P139 billion.
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“With our strong balance sheet and capital position, we can sufficiently fund our growth plans in the years ahead,” said Patrick Cheng, chief finance officer of Chinabank.
Last month, Chinabank launched its brand refresh program in hopes of making its image “more resonant and engaging” to a new generation of customers, with new signages greeting clients at major branches.
“From compelling product innovations to reimagined customer-facing solutions to the adoption of a new bank logo, exciting things are happening at Chinabank,” Uyan said. INQ
