China Banking Corporation (Chinabank) reported a record P28-billion net income in 2025, up 13 percent year-on-year, which the bank attributed to sustained expansion in its core lending business and steady growth in fee-based income.

In a Thursday disclosure to the local bourse, Chinabank said the performance translated to a return on equity of 15.6 percent and return on assets of 1.6 percent, both remaining among the strongest in the banking industry.

Favorable funding mix

Interest income climbed 12 percent to P105.2 billion as loan demand strengthened across corporate and consumer segments. At the same time, a favorable funding mix helped manage the rise in interest expenses, allowing the bank to maintain a net interest margin of 4.6 percent.

Total operating income rose 16 percent to P75.7 billion, supported not only by lending but also by higher transactional fees, trust income and bancassurance commissions.

The bank said its loan portfolio crossed a milestone during the year, with gross loans surpassing P1 trillion for the first time and reaching P1.1 trillion, up 13 percent from the previous year. Management attributed the increase to sustained borrowing from businesses as well as expanding consumer credit demand.

Asset quality remains stable

Despite the faster loan growth, Chinabank said asset quality remained stable. The non-performing loan ratio held at 1.6 percent, while the bank set aside P7 billion in credit provisions, raising its NPL coverage ratio to 109 percent, above industry levels.

Operating expenses increased 12 percent to P34.4 billion, mainly due to investments in manpower, taxes and technology aimed at supporting future revenue growth. Even with higher spending, the cost-to-income ratio improved to 45 percent, indicating continued operating efficiency.

On the balance sheet side, total assets expanded 8 percent to P1.8 trillion, while deposits grew 9 percent to P1.4 trillion. Current and savings accounts made up 48 percent of deposits, providing a stable and relatively low-cost funding base for lending activities.

Strengthened capital levels

Capital levels also strengthened, with the banking reporting total equity rising 13 percent to P191.3 billion in 2025.

Chinabank ended the year with a common equity tier 1 ratio of 15.2 percent and a capital adequacy ratio of 16.1 percent, both comfortably above regulatory requirements and giving the bank ample room to support future growth. Book value per share likewise climbed 13 percent to P71.04.

Founded in 1920, Chinabank said it remains the fourth-largest private universal bank in the Philippines, backed by the SM Group and supported by a nationwide network of branches, ATMs and digital banking platforms.