🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Chinabank reports 10% rise in net income for first nine months of 2023

EditorRachael Rajan
Published 11/07/2023, 11:28 AM
© Reuters.

In the first nine months of 2023, China Banking Corp. (Chinabank) reported a net income increase of 10% to P16.2 billion ($322 million), up from P14.7 billion year-on-year, according to recent financial results. The bank's return on equity stood at 15.6%, and return on assets was 1.6%. In the third quarter alone, Chinabank's net earnings rose by 16% to P5.4 billion.

The bank's growth has been attributed to robust core business performance and lower loan loss provisions. Despite a high interest rate environment, Chinabank managed to increase its net interest income by 16% to P39.2 billion, offsetting a surge in interest expenses.

Operating expenses for the bank increased by 14% to P20.5 billion due to higher manpower and inflation-related costs. However, the cost-to-income ratio remained healthy at 50%. Chinabank's CEO, Romeo D. Uyan Jr., emphasized the bank's focus on preserving margins, managing costs, and leveraging technology.

Gross loans increased by 10% year-on-year to P765 billion, driven primarily by a substantial 19% expansion in consumer loans, including teachers’ loans and credit cards. The bank's nonperforming loan (NPL) ratio remained at a better-than-industry average of 2.2%, with an NPL cover at 126%.

Total deposits saw a significant growth of 14%, reaching P1.1 trillion, which resulted in a current account savings account (CASA) ratio of 49%. The bank's total assets increased by 11% to P1.4 trillion, solidifying Chinabank's position as the fourth largest private domestic bank.

Chinabank's common equity Tier 1 ratio stood at 14.9%, while the total capital adequacy ratio was at 15.8%. The bank's total capital grew by seven percent to P141 billion, indicating strong capital generation and asset quality. This growth aligns with the bank's ongoing efforts to optimize its capital structure. The book value per share remained at P52.50, while the bank's stock price stayed unchanged at P30.40.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.