China Bank Savings, the retail and thrift banking arm of major universal bank, China Banking Corporation, has sustained its profitability in the first half of 2026 as strong loan growth offset the impact of global geopolitical tensions and a challenging economic environment, allowing the thrift bank to keep earnings largely unchanged from a year earlier.

The country’s second-largest thrift bank posted a net income of P1.19 billion for the January-to-June period, supported by continued expansion in its lending business, particularly salary and business loans.

Strong funding base

Net interest income climbed 16 percent year-on-year to P5.49 billion, reflecting higher lending activity. Gross loans rose 8 percent to P158.8 billion, while deposits increased 10 percent to P199.42 billion, providing the bank with a stronger funding base for future growth.

CBS president James Christian T. Dee said the bank’s conservative lending strategy helped preserve the quality of its loan portfolio despite economic uncertainties.

“Our disciplined approach to lending has kept our portfolio sound and strong amid prevailing global geopolitical uncertainties and their impact on Philippine economic growth, inflation, and other factors. We will continue to grow our lending business in a prudential manner.”

The bank’s total assets reached P225.58 billion, backed by a customer base of more than 1.2 million. Asset quality also remained healthy, with its non-performing loan ratio at 2.9 percent, while loan-loss reserves were nearly doubled to strengthen protection against potential credit risks. Mico Virata

Nationwide expansion accelerated

CBS also accelerated its nationwide expansion to reach more underserved communities. During the first half, it opened five new branches and upgraded 10 Branch Lite Units into full-service branches, bringing its network to 190 branches, 33 APD Lending Centers, and 65 Branch Lite Units.

CBS Senior Vice President and Retail Banking Group Head Jan Nikolai M. Lim said branch expansion remains a priority despite the difficult operating environment.

“There are still unbanked communities all around the Philippines. The current challenging conditions are tough, but we know from experience that Filipinos are tougher. Consumers and entrepreneurs alike need banking services to support their families and their businesses, and we want to be there for them. Our expansion plans will continue.”

The bank said it will continue expanding its higher-yield loan portfolio, growing low-cost deposits and investing in both its branch network and digital banking platforms to support long-term growth.