Chinabank Q1 earnings jumped 10% to P6.5B

Chinabank’s net interest income rose by 14 percent to P17.1 billion on higher asset yields and loan volume. (Photo from Chinabank

MANILA, Philippines — Growth in its core business lifted the first-quarter net income of China Banking Corp. by 10 percent to P6.5 billion.

In a stock exchange filing on Friday, the Sy family-led bank said its net interest income jumped by 14 percent to P17.1 billion on higher asset yields and loan volume.

This offset the 17-percent increase in operating expenses to P8.4 billion due to Chinabank’s investments in digital, infrastructure and talent capabilities, the bank said.

Gross loans reached P954 billion, up by 19 percent on higher business and consumer lending.

Despite the loan expansion, Chinabank’s nonperforming loan ratio eased to 1.5 percent. This came after 1.8 percent in the same period last year.

As of end-March, total assets of the country’s fifth-largest bank stood at P1.7 trillion, up by a tenth.

“Our first quarter results reflect the fruits of the concerted efforts across all our different businesses to drive organic growth and support our customers,” Chinabank president and CEO Romeo Uyan Jr. said.