China Banking Corporation (China Bank) reported a net income of P5.9 billion in the first quarter of 2024, marking an 18 percent increase compared to the same period last year, driven by robust growth in its core businesses. The resulting return on equity and return on assets remained strong at 15.5 percent and 1.6 percent, respectively.
Net interest income surged by 18 percent to P15.0 billion, fueled by higher asset yields and loan volume, leading to an improved net interest margin of 4.4 percent, up by 22 basis points.
Provisions for loan losses were reduced to P302 million, reflecting improving economic conditions. Operating expenses were kept in check, growing by only 6 percent to P7.2 billion, resulting in a better cost-to-income ratio of 48 percent.
“We are committed to sustaining our growth trajectory. Our strong performance in the first quarter sets the stage for achieving our ambitious goals and targets,” said China Bank president and chief executive officer Romeo Uyan Jr.
As part of its efforts to resonate with a new generation of customers, the country’s fourth-largest private lender recently launched a brand refresh campaign, introducing compelling product innovations, customer-facing solutions, and a new bank logo.
China Bank’s total assets grew by 11 percent to P1.5 trillion, with gross loans increasing by 11 percent to P805 billion, driven by strong demand from businesses and consumers. Despite this growth, credit quality remained solid, with the non-performing loans (NPL) ratio easing to 1.8 percent and NPL coverage improving to 143 percent. Total deposits expanded by 13 percent to P1.2 trillion.
The bank’s capital increased by 11 percent to P154 billion, with a common equity tier 1 (CET-1) ratio of 15.3 percent and total capital adequacy ratio (CAR) of 16.2 percent, both comfortably above regulatory minimums. Book value per share improved by 11 percent to P57.35.
“With our robust balance sheet and capital position, we are well-equipped to fund our growth plans in the years ahead,” said chief finance officer Patrick Cheng.
At its 2024 Annual Stockholders’ Meeting, China Bank announced an all-time high cash dividend of P5.9 billion, 16 percent higher than last year, representing 27 percent of its 2023 net income of P22.0 billion. Shareholders on record as of May 3, 2024, will receive a regular cash dividend of P1.20 per share and an additional special cash dividend of P1.00 per share on May 16, 2024.
China Bank maintained its Baa2 deposit and issuer ratings with a stable outlook from Moody’s Investors Service. Additionally, the bank, recognized as the 2023 Employer of the Year by the People Management Association of the Philippines and a two-time Five-Golden Arrow Awardee by the Institute of Corporate Directors, was recently honored by the CFA Society Philippines for its Chinabank Dollar Fixed Income Fund, named the Best Managed Fund of the Year in its category for the 8th time.
