China Banking Corporation sustained its profitability in the first half of the year on higher revenues and lower provisioning. Net profits from January to June 2023 reached P10.8 billion, up 7 percent from the same period last year, translating to a return on equity of 15.9 percent and a return on assets of 1.6 percent.
Quarter on quarter, net income increased by 16 percent to P5.8 billion in 2Q 2023 from P5.0 billion in 1Q 2023.
Total revenues hit P27.2 billion in the first semester, up 8 percent year-on-year. Net interest income climbed 16 percent to P25.5 billion as the robust growth in top line revenues offset the surge in interest expense.
“Our customer focus and disciplined operational execution enabled us to continue to deliver strong results to all our stakeholders,” said Chinabank President & CEO Romeo Uyan, Jr.
Chinabank booked P878 million in provisions for loan losses, lower by 47 percent from the same period last year, as the economy continues to recover. Non-performing loan (NPL) cover remained sufficient and above industry at 122 percent.
Continued heavy investments on human resource development and digital innovation, along with higher volume and revenue-related taxes, led to a 22 percent increase in operating expenses to P13.6 billion. Nevertheless, cost-to-income ratio remained healthy at 50 percent.
