CHINA Banking Corp.’s (Chinabank) net income rose 12.7% to a record P24.8 billion last year, amid sustained core business growth.
Its common equity tier 1 ratio was 15.3%, while total capital adequacy ratio was 16.2%, the Philippine lender said in a statement on Thursday.
The publicly listed lender did not provide financial figures for the fourth quarter.
“Our ongoing business transformation as well as solid fundamentals will allow us to sustain our growth in the coming years,” Chinabank President and Chief Executive Officer Romeo D. Uyan, Jr. said.
The bank’s full-year performance translated to a return on equity of 15.6% and return on assets of 1.6%, according to its financial statement.
Net interest income rose 18.7% year on year to P63.54 billion due to asset base expansion. Net interest margin stood at 4.5%. Revenue increased 21.1% to P65.49 billion.
Operating expenses went up 20.43% to P30.07 billion amid continued investments in manpower and technology, and volume-related taxes. Its cost-to-income ratio was 47%.
Gross loans rose 18.55% to P916.23 billion from a year earlier as demand from all segments increased.
“Taking a more proactive stance against portfolio risks despite the easing of its nonperforming loan (NPL) ratio to 1.6%, the bank also increased its credit provisions to P3.3 billion,” Chinabank said. “The resulting NPL coverage was higher at 139%.”
Total deposits rose 12.2% to P1.33 trillion from 2023, while assets expanded 11.4% to P1.65 trillion. Total capital went up 12.2% to P168.5 billion.
The lender’s liquidity coverage ratio fell to 110.67% from 127.02%.
“With ample liquidity and a solid capital structure, we can confidently support our institutional and retail customers and advance our growth strategies, while ensuring financial stability through market volatilities and economic challenges,” Chinabank Chief Finance Officer Patrick D. Cheng said in the statement.
The bank doubled its stock price last year due to its strong performance and investor confidence, it said. Book value per share rose 12% to P62.61.
Chinabank shares fell five centavos to close at P86.50 each. — Aaron Michael C. Sy
