China Banking Corporation earned P5.9 billion in the first quarter of 2024, 18 percent higher compared to the same period last year, on the robust growth of its core businesses.
The resulting return on equity and return on assets continued to be among the best in the industry at 15.5 percent and 1.6 percent, respectively.
Net interest income grew by 18 percent to P15.0 billion, driven by higher asset yields and loan volume. Net interest margin improved by 22 basis points to 4.4 percent.
Provisions for loan losses were reduced to P302 million as economic conditions continued to improve. The growth of operating expenses was controlled at 6 percent to P7.2 billion, translating to a better cost-to-income ratio of 48 percent.
“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 & Chief Executive Officer Romeo D. Uyan Jr. said.
The country’s fourth-largest private lender recently launched a brand refresh campaign to make its brand and image more resonant and engaging to a new generation of customers.
“From compelling product innovations to reimagined customer-facing solutions, to the adoption of a new bank logo, exciting things are happening in Chinabank,” Uyan added.
Chinabank’s total assets grew by 11 percent to P1.5 trillion. Its gross loans increased by 11 percent to P805 billion on strong loan demand from businesses and consumers.
Nonetheless, credit quality was kept in check, with non-performing loans (NPL) ratio easing to 1.8 percent and NPL coverage improving to 143 percent. On the funding side, total deposits expanded by 13 percent to P1.2 trillion.
