Loan growth lifts Chinabank profit to P22.6B

Fueled by robust lending growth and stronger interest earnings despite higher operating expenses, Chinabank booked a 12-percent increase in consolidated net income to P22.6 billion in the first nine months of the year.

The company reported on Thursday that the bank’s net loan portfolio expanded 19 percent year-on-year to P1.2 trillion as of the end of September, helping drive a 14-percent increase in net interest income to P60.7 billion.

Its net interest margin improved to 4.73 percent, reflecting stronger earnings from its core banking operations.

The nine-month performance translated to a return on equity of 15.6 percent and a return on assets of 1.6 percent.

Chinabank’s total assets grew 12 percent to P1.9 trillion, reinforcing its position as the country’s fourth-largest private universal bank.

On the funding side, total deposits increased 9 percent to P1.5 trillion, supported by a 19-percent surge in low-cost checking and savings accounts (CASA) to P751 billion.

This pushed the bank’s CASA ratio to 49 percent, providing a stable funding base to sustain lending expansion.

Despite the rapid growth in its loan portfolio, Chinabank maintained a non-performing loan ratio of 1.5 percent, with NPL coverage at 102 percent.

The bank also set aside P1.9 billion for impairment and credit losses to cushion potential credit risks.

“Strategic investments in digital transformation and business expansion drove operating expenses up 13 percent to P28.6 billion, though cost discipline kept the bank's cost-to-income ratio at a well-managed 49 percent,” the bank said.

Chinabank’s total equity rose 6 percent to P195 billion, while book value per share increased by the same rate to P72.52.

Its common equity tier 1 ratio stood at 14.65 percent, while its total capital adequacy ratio reached 15.53 percent, providing sufficient capital buffers to support further growth.