Sy-blings’ ChinaBank Q1 profit jumps 37% on core business strength
Money

Sy-blings’ ChinaBank Q1 profit jumps 37% on core business strength

Sustained core business growth lifted China Banking Corp.’s first quarter net earnings by 37 percent to P4.9 billion.

Sy family-led China Bank said net interest income climbed 15 percent to P10.8 billion on the back of higher earning assets and lower interest expense.

Lower trading gains compressed fee-based income to P1.7 billion despite an 18% increase in service charges, fees, and commissions and a 22 percent jump in trust fees.

“China Bank’s organic growth momentum continues—loans and deposits are up, expenses are down, and credit quality remains solid,” said China Bank president William C. Whang.

Provisions for credit losses declined by 65 percent to P780 million, resulting in a higher non-performing loan (NPL) coverage of 119 percent.

Prudent cost management led to an eight percent drop in total operating expenses, further improving the cost efficiency ratio to 46 percent.

The bank’s total assets grew 12 percent to P1.1 trillion while total deposits rose eight percent to P879 billion.

“Our effective asset-liability management and solid capital structure have allowed clients to access our balance sheet and enabled us to achieve better-than-industry growths in assets, loans, and equity,” China Bank CFO Patrick D. Cheng said.

Increased demand across corporate and consumer borrowers resulted to a 10 percent jump in gross loans to P632 billion.

 

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