China Banking Corporation's Net income jumps 18% to P5.9 billion in Q12024

Due to the substantial growth of its core business, China Banking Corporation (Chinabank) generated P5.9 billion in revenue in the first quarter of 2024, an 18% increase over the same time the previous year. At 15.5% and 1.6%, respectively, the resulting return on equity and return on assets remained among the best in the industry. 

Due in large part to increased loan volume and asset yields, net interest income increased by 18% to P15.0 billion. The net interest margin increased to 4.4%, up 22 basis points.

The improvement in the economy led to a reduction in provisions for loan losses to P302 million. With operational expenses growing at a controlled rate of 6% to P7.2 billion, the cost-to-income ratio improved to 48%.

“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 now has P1.5 trillion in total assets, an 11% increase. Its gross loans rose to P805 billion, an 11% rise, due to strong demand from both consumers and companies. However, the non-performing loan (NPL) ratio decreased to 1.8% and the NPL coverage increased to 143%, indicating that credit quality was maintained. Regarding funding, the total amount of deposits increased by 13% to P1.2 trillion.

With a total capital adequacy ratio (CAR) of 16.2% and a common equity tier 1 (CET-1) ratio of 15.3%—both far over the statutory minimums—the bank's capital increased by 11% to P154 billion. To P57.35, book value per share increased by 11%.

“With our strong balance sheet and capital position, we can sufficiently fund our growth plans in the years ahead,” Chief Finance Officer Patrick D. Cheng said.
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Chinabank recently announced an all-time high cash dividend of P5.9 billion at its 2024 Annual Stockholders' Meeting, 16% more than the previous year and 27% of its P22.0 billion 2023 net income. On May 16, 2024, a special cash dividend of P1.00 per share will be paid to the bank's stockholders who were on file as of May 3, 2024, in addition to the regular cash dividend of P1.20 per share.

Moody's Investors Service has maintained Chinabank's Baa2 deposit and issuer ratings, which are one notch above investment grade, with a stable outlook. The bank was recently honored by the CFA Society Philippines for its Chinabank Dollar Fixed Income Fund, which was named for the eighth time as the Best Managed Fund of the Year in its category. The bank has already been recognized by the People Management Association of the Philippines as the 2023 Employer of the Year and by the Institute of Corporate Directors as a two-time Five-Golden Arrow Awardee.

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 1,071 ATMs to date, including the 168 branches and 203 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.