Chinabank, under the SM group, grew its net income last year to a record P24.8 billion by 13 percent due to a double-digit growth in loans.

In a disclosure to the Philippine Stock Exchange on Thursday, Sy-owned Chinabank posted an 18 percent increase in gross loans amounting to P933 billion.

As a result, net interest income surged to P63.5 billion by 19 percent and contributed to revenues worth P65.5 billion.

Non-performing loan (NPL) ratio also improved to 1.6 percent. Despite this, Chinabank took a cautionary approach through a higher NPL coverage of 139 percent.

Inflation remains elevated

The figures came amid still elevated average inflation of 3.2 percent last year or above the Bangko Sentral ng Pilipinas’ minimum target of 2 percent.

Meanwhile, total deposits jumped by 12 percent to P1.3 trillion.

Due to higher interest income over depositor liabilities, the net interest margin improved to 4.5 percent.

“With ample liquidity and a solid capital structure, we can confidently support our institutional and retail customers and advance our growth strategies while ensuring financial stability through market volatilities and economic challenges,” Chinabank chief finance officer Patrick Cheng said.

Operating costs jumped by 14 percent to P30.7 billion as the bank paid more taxes, strengthened its human resources, and upgraded its technology.

Recently, Chinabank said it enhanced its mobile app My CBC which features biometrics log-in, mobile check deposit, digital account opening, and fund transfers.

Given the robust figures, total assets reached P1.6 trillion, higher by 11 percent. Meanwhile, total capital grew by 12 percent to P169 billion.