China Banking Corporation posted P10.1 billion in net profit in the first six months of 2022, up 39 percent compared to the same period last year, driven mainly by higher net interest income and core fee income, as well as lower provisions.
The robust income performance translated to a better return on equity and return on assets at 16.4 percent and 1.7 percent, respectively.
Net interest income rose 16 percent to P22.0 billion on the back of stronger top line revenues and steady movement in interest expense. As a result, net interest margin was amaintained at 4.3 percent.
The decline in trading and foreign exchange gains weakened fee-based income to P3.2 billion. Nevertheless, core fee income increased 24 percent, driven mainly by double-digit growths in service charges, fees, and commissions, income from sale of acquired assets, and bancassurance.
Reflecting its positive economic outlook and its improving asset quality, the Bank reduced its credit provisions by 69 percent to P1.7 billion. Gross non-performing loans (NPL) ratio was at 2.3 percent, 120 bps lower versus last year and better than industry average.
Meanwhile, NPL cover remained sufficient and above industry at 128 percent.
Efficiency enhancements and judicious cost management kept operating expenses flat year-on-year, further improving cost-to-income ratio to 44 percent.
“The sustained growth puts China Bank in a stronger position to support customers and the economy in this period of recovery,” China Bank President William Whang said.
Throughout the pandemic, the bank has consistently recorded quarterly income growth.
“For the 2Q 2022 period, China Bank’s net income breached the P5-billion mark, a first in the Bank’s more than 100-year-old franchise,” Chief Finance Officer Patrick D. Cheng said.
China Bank remains one of the largest banks in the country.
As of June 2022, consolidated assets were recorded at P1.2 trillion, up 17 percent.
Loans expanded 14 percent to P655 billion on the back of significant growths in both business and consumer loans.
