China Bank Savings’ Q1 profit up 11.5%
CHINA BANK Savings, Inc. (CBS), the thrift banking arm of listed China Banking Corp. (Chinabank), saw its net profit rise by 11.5% year on year to P631.2 million in the first quarter, supported by the sustained growth of its core businesses.
Net interest income climbed by 20.4% to P2.8 billion backed by steady lending growth, it said in a statement on Wednesday.
Net loans stood at P155.5 billion, expanding by 11.5% year on year, driven mainly by the bank’s salary loan and business loan segments.
On the funding side, total deposits were at P191.4 billion, up by 12% from the previous year.
CBS booked total assets of P217.3 billion at end-March, backed by its growing customer base.
Asset quality remained stable as the bank posted a nonperforming loan (NPL) ratio of 2.9%. “The bank’s NPLs continue to be adequately covered by loan-loss allowances, reflecting CBS’ conservative provisioning stance,” it said.
“These are interesting times, but a young bank like CBS, can be more agile and can adapt to the changing environment faster. Already, CBS is establishing itself in the thrift banking space as a significant player. Thanks to its mix of affordable and readily available loan products, and its competent and driven workforce which is in tune with the needs of the bank’s target market,” CBS Chairman Ricardo R. Chua said.
For the rest of the year, the bank said it will continue to expand its higher-yielding loan segments and its low-cost deposit base, deepen customer relationships, and maintain its operational efficiency through sustained investments in both physical and digital capabilities.
“CBS prides itself in maintaining strong relationships with its customers, and they have rewarded the bank with loyalty. There is no substitute for trust and dependability, and the bank provides that in spades whatever the circumstance,” CBS President James Christian T. Dee said.
The bank ended the first quarter with 175 branches, 34 automatic payroll deduction (APD) lending centers, 73 APD branch-lite units, and more than 3,000 employees.
In April, it converted 10 branch-lite units into full-service branches. It added that it is set to open an additional five branches before the end of the second quarter, which would bring its network to 190 branches.
“We at CBS are eager to provide our ‘Easy Banking’ services nationwide, and that is why we continue to expand our branch network despite accelerating inflation. We are confident in the resilience of the Philippine economy, and we recognize the ingenuity and resourcefulness of the Filipino entrepreneur will require financial support from the banking sector to ensure sustainability as well as prosperity for their endeavors,” CBS Senior Vice-President and Retail Banking Group Head Jan Nikolai M. Lim said.
Its listed parent Chinabank saw its net profit increase by 4% to P6.8 billion in the first quarter, backed by strong growth in its core businesses and stable asset quality. — A.M.C. Sy
