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CHINABANK Savings, Inc. (CBS), the thrift banking arm of listed China Banking Corp. (Chinabank), has surpassed its loan growth target for the year and expects further expansion amid declining interest rates, which would put it on track to reach its 2024 income goal, its top official said.

“In terms of growth, we’ve actually already hit our year-end target in loans as of October,” CBS President James Christian T. Dee told BusinessWorld on the sidelines of an event on Friday.

Mr. Dee previously said CBS wants its loan portfolio to reach P130 billion by end-2024.

As of end-June, the thrift bank’s net loans grew by 9.39% year on year to P127.28 billion, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

The growth in its loan book puts the bank on track to reach its P2.15-billion net income target for this year, Mr. Dee said.

“Actually for net income, we’re just right on target. We’re looking forward to some easing in rates to support our final year-end target,” he said.

“Looking toward the next year, we’re generally optimistic because hopefully, with rates stabilizing or easing, we’re looking at even better numbers for 2025,” Mr. Dee added.

CBS booked a net income of P1.001 billion in the first semester, rising by 14.4% from P875 million in the comparable year-ago period, according to its listed parent’s quarterly report.

In 2023, the thrift lender posted a net profit of P1.828 billion.

Mr. Dee earlier said the thrift bank targets to grow its loan portfolio to P151 billion in 2025, backed by expectations of growth in its retail banking segment.

The BSP in August cut benchmark interest rates for the first time in nearly four years, slashing its policy rate by 25 basis points (bps) to 6.25%.

A BusinessWorld poll conducted last week showed that 16 out of 19 analysts expect the Monetary Board to reduce borrowing costs by another 25 bps at its policy meeting on Wednesday (Oct. 16) to bring the target reverse repurchase rate to 6%.

On the other hand, two analysts expect the central bank to cut by a bigger 50 bps this week, while one said the Monetary Board could leave rates unchanged.

BSP Governor Eli M. Remolona, Jr. earlier said they could deliver a 25-bp rate cut at each of their October and December meetings, which would bring the policy rate to 5.75% by yearend.

CBS’ listed parent Chinabank booked an attributable net income of P5.53 billion in the second quarter, down by 4.75% year on year as trading losses multiplied by nearly six times. This brought its net profit for the first semester to P11.44 billion, up by 5.65% year on year.

Chinabank shares went up by P1.80 or 3.02% to end at P61.40 apiece on Tuesday. — Aaron Michael C. Sy