China Banking Corp. (Chinabank) reported a P6.8-billion net income in the first quarter of 2026, up 4 percent year-on-year, supported by sustained growth in its core banking operations.

In a Thursday disclosure to the stock exchange, the bank said the performance translated to a return on equity (ROE) of 14.2 percent and a return on assets (ROA) of 1.5 percent, among the highest in the industry, underscoring the bank’s continued profitability despite a challenging operating environment.

Net interest income remained the primary growth driver, rising 14 percent to P19.5 billion, as improved margins and lower funding costs lifted earnings. The bank’s net interest margin expanded to 4.61 percent, up 12 basis points from a year earlier.

Operating expenses increased at a slower pace of 5 percent to P8.8 billion, largely due to investments in digital transformation and workforce expansion. This kept the bank’s cost-to-income ratio at a manageable 49 percent, reflecting operational efficiency.

Chinabank’s balance sheet also strengthened during the period. Total assets grew 12 percent to P1.9 trillion, driven by the build-up of earning assets, while gross loans expanded 16 percent to P1.1 trillion, supported by demand across corporate and consumer segments.

On the funding side, deposits rose 13 percent to P1.5 trillion, with low-cost current and savings accounts (CASA) increasing 20 percent, lifting the CASA ratio to 48 percent from 46 percent a year earlier.

Asset quality remained stable, with a non-performing loan (NPL) ratio of 1.6 percent, better than the industry average. The bank maintained a conservative stance by increasing provisions to P684 million, resulting in an NPL coverage ratio of 110 percent.

Capital levels also improved, with total equity rising 10 percent to P192.3 billion. Book value per share climbed 10 percent to P71.42, reflecting continued value creation for shareholders.

The strong first quarter performance builds off Chinabank’s 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. 

During its annual stockholders’ meeting earlier this month, the bank also approved P7.5 billion in cash dividends, equivalent to P2.80 per share, 12 percent higher than last year’s payout. The bank said shareholders on record as of 30 April 2026 will receive the dividends on 14 May, with the payout translating to a dividend yield of about 4.5 percent based on the bank’s recent share price.