China Banking Corporation (Chinabank) Reported a PHP 22 Billion Net Income in 2023, Up 15%

China Banking Corporation (Chinabank) reported record profits of P22.0 billion in 2023. Supported by stronger core business revenues, the bank's net income climbed by 15% from 2022, resulting in a 15.5% return on equity and a 1.6% return on assets, which remains among the best in the sector. 

Net interest revenue increased by 17% to P53.5 billion, as strong growth in loans and investments offset significantly higher interest expenses. The net interest margin was maintained at 4.2%.

With strengthening economic conditions, the bank cut loan loss provisions to P1.2 billion. Asset quality was constant, with a 2.5% non-performing loan (NPL) ratio, and NPL coverage remained adequate at 104%. 

Operating expenses rose 11% to P27.0 billion, owing to higher volume-related taxes and increased investments in people and information technology. Simultaneously, significant overhauls are occurring within Chinabank's IT architecture as part of its ongoing digital transformation efforts. The cost-to-income ratio was around 50%.

“Our strong growth in 2023 solidifies our position as one of the top four banks in the country,” Chinabank President & CEO Romeo D. Uyan Jr. said. “We remain focused on executing our business strategies while leveraging our investments in digitalization to deliver better services to our customers.”

Total assets reached P1.5 trillion, up 11%, and remained the fourth largest among privately owned domestic banks. Gross loans increased by 10% to P791 billion, and consumer loans now account for 23% of the total loan portfolio. On the funding side, total deposits increased 11% to P1.2 trillion, with a CASA ratio of 48%.

Total equity increased 12% to P150 billion, with capital ratios considerably above the legal minimum: 15.3% common equity tier 1 ratio and 16.1% total capital adequacy ratio. Book value per share was P55.82, up 12%.

“Our continuous drive for operational efficiency and the strong client demand for our services underpin our solid financial performance in 2023. We will continue to strengthen our business fundamentals and capabilities to sustain our growth momentum in the coming years,” Chinabank Chief Finance Officer Patrick D. Cheng said.

​Chinabank is one of the best-governed publicly traded companies and best employers in the country, having received the Institute of Corporate Directors' Five-Golden Arrow award for the second time in 2023 and the People Management Association of the Philippines' 2023 Employer of the Year. The bank has also received international recognition as one of the most innovative and best in the private banking sector, including the Infosys Finacle Gold Award for Product Innovation, Backbase's Big Shift Champion of the Year award, and Private Banker International's Outstanding Wealth Management Service for the Affluent.

Chinabank opened for business on August 16, 1920 in Binondo, Manila, and is now one of the largest private universal banks in the Philippines. It provides a full range of banking products and services to corporate, commercial, and retail customers through 648 branches and 1,070 ATMs to date, including the 168 branches and 202 ATMs of its savings bank arm CBS. Chinabank also offers a wide range of allied financial services through its subsidiaries Chinabank Capital, Chinabank Securities, Chinabank Insurance Brokers, and affiliate MCBLife.