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.

Primary growth driver

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.