China Bank Savings (CBS) grew its net income by 18 percent to P1 billion in the first half of the year compared to P849 million recorded in the same period of 2023.
In an email to the media on Friday, CBS said the six-month growth rate was faster than last year’s full-year growth rate of 16 percent. CBS has come closer to hitting P1.8 billion which it achieved over 12 months for a full profit in 2023.
CBS, the thrift bank of Sy-led China Bank Corp., increased gross loans by 22 percent to P125.8 billion.
This reflected a 28 percent growth in consumer loans and loans to school workers or the Automatic Payroll Deduction (APD) Salary Loan worth a total of P109.9 billion.
Qualified borrowers for the APD loans include teaching and non-teaching personnel of the Department of Education (DepEd), state and local universities and colleges, the Technical Education and Skills Development Authority, and the Department of Science and Technology–Philippine Science High School, among others.
“Part of this effort includes the revival of the CBS Financial Wellness Roadshow done in partnership with the DepEd. The Mindanao leg of the roadshow held earlier this week helped inform over 400 DepEd teachers and staff about savings and debt management strategies,” CBS said.
CBS added it continued to conduct marketing activities for small and medium enterprises (SMEs) through the SME Kapihan sessions where the entrepreneurs learn which CBS business loan suits their needs.
CBS stressed its 22 percent growth in loans for various customer segments surpassed the 11.5 percent forecast for this year by Fitch Ratings, a global credit analyst.
NPLs manageable at 3.3%
Non-performing loan ratio remained manageable at 3.3 percent despite the high-interest environment.
CBS president James Christian Dee said he is optimistic the bank will continue to attract more borrowers as easing inflation allows extra funds for various purchases.
“This 2024, the outlook for the country and CBS is positive. A sustained downtrend in inflation should be a tailwind for the economy this year,” he said.
Dee expects inflation to settle at 3.8 percent this year or within the 2 to 4 percent target of the Bangko Sentral ng Pilipinas. With a strong demand for consumption, he said the economy could expand by 5.8 percent this year or slightly better than 5.6 percent in the previous year.
Meanwhile, deposits rose to P152.8 billion by 26 percent.
Accordingly, CBS’ assets grew by 25 percent to P174 billion, making CBS the country’s second-largest thrift bank as of March.