Chinabank Q1 net profit climbs to P6.8 billion
CHINA BANKING Corp.’s (Chinabank) net profit increased by 4% to P6.8 billion in the first quarter, backed by strong growth in its core businesses and stable asset quality.
This translated to a 14.2% return on equity and a 1.5% return on assets, it said in a disclosure to the stock exchange on Thursday.
The bank’s net interest income jumped by 14% year on year to P19.5 billion as it saw higher topline revenues and lower interest expenses.
As a result, its net interest margin improved by 12 basis points to 4.61%.
Meanwhile, Chinabank’s operating expenses climbed by 5% to P8.8 billion. It attributed the increase to its ongoing investments in human capital and digital transformation.
Its cost-to-income ratio was at 49%, which it said is “healthy… despite higher spending on technology and initiatives aimed at driving revenue growth.”
The bank’s gross loans grew by 16% year on year to P1.1 trillion at end-March amid strong demand across its consumer and corporate segments.
Its nonperforming loan (NPL) ratio was at 1.6%.
“Despite steady asset quality,… Chinabank remained committed to prudence, increasing loan loss provisions to P684 million, resulting in an NPL coverage ratio of 110%,” it said.
Meanwhile, total deposits rose by 13% to P1.5 trillion, with low-cost checking and savings accounts (CASA) rising by 20%. As a result, its CASA ratio improved to 48% from 46% previously.
Chinabank’s assets expanded by 12% year on year to P1.9 trillion at end-March, “driven by the strategic buildup of high-quality earning assets.”
Total equity went up by 10% to P192.3 billion.
Chinabank shares closed unchanged at P64 apiece on Thursday. — BVR
