China Bank posts strong growth

China Bank Corp. grew its first quarter net profit by 4 percent year-on-year to P1.21 billion, backed by strong growth in core businesses.

Net interest income went up by 23 percent year-on-year to P3.71 billion in the first quarter, driven by a 31-percent rise in interest revenues from loans.

Non-interest income increased by 6 percent to P1.07 billion, boosted by higher trading gains and branch-based fees.

Total operating income amounted to P4.77 billion, up 19 percent.

On the other hand, operating expenses expanded by 25 percent as China Bank carried out its expansion program.

Amid tougher competition and declining interest rates, the bank recorded a better net interest margin of 3.37 percent versus 3.13 percent for the same period last year.

Return on equity and return on assets stood at 8.39 percent and 1.03 percent, respectively.

Total assets expanded by 17 percent year-on-year to P477.4 billion—the fifth largest among domestic private universal banks in the country. Gross loans grew by 24 percent to P291.54 billion, driven by strong demand from all customer segments, including the P30.63 billion loans of Plantersbank.

On the funding side, deposits increased by 16 percent year-on-year to P406.22 billion. Total capital in the first quarter stood at P57.83 billion. Doris Dumlao-Abadilla