CHINA BANKING Corp.’s (China Bank) consolidated net income saw double-digit growth during the third quarter as its loan portfolio and deposits continued to expand.
In a disclosure to the Philippine Stock Exchange on Tuesday, China Bank said its net earnings climbed 25% year-on-year in the July-September quarter to P2.5 billion, taking its profit for the first nine months to P6.7 billion, up 21% from the P5.6 billion posted in the same period year ago.
This translated to a 9.92% return on equity and 0.99% return on assets.
The lender’s net interest income grew 9% to P18.7 billion from January to September, which comprised 78% of its P23.8-billion total operating income, while net interest margin stood at 3.29%.
Likewise, China Bank reported a 10% growth in its overall loan portfolio to P552.5 billion from sustained demand across market segments.
Despite the increase in loans, it said that the bank’s asset quality remained healthy as its non-performing loan ratio (NPL) stood at 1.4% as of September, while its NPL coverage grew by 122%.
On the funding side, the bank’s total deposits also went up 12% to P777.2 billion as of September.
“The bank successfully raised P30 billion via retail bond offer and P7.5 billion via the issuance of green bonds which helped improve funding flexibility,” the bank said in the statement.
As it continued to upgrade its systems, processes, infrastructure, and manpower, the bank saw its operating expenses increase by 19% to P15.6 billion.
As of end-September, the bank’s assets grew 17% to P953.9 billion, keeping it “on track” to reach its goal of becoming a P1-trillion bank by 2020.
Meanwhile, its income from non-interest sources jumped 43% to P5.2 billion “driven mainly by service charges, fees and commissions, as well as trading and securities gains.”
Its total capital funds inched up 8% to P92.9 billion, with a total capital adequacy ratio of 13.6% and common equity Tier 1 ratio of 12.7%.
In nine months to September, China Bank’s investment banking subsidiary completed various transactions amounting to P423.6 billion.
“The bank continues to support the growth of the capital market through China Bank Capital,” it said.
In July, it raised P30 billion via its maiden fixed-rate bond offering, upsized from the initial target of P5 billion, making it as “one of the biggest corporate bond issuances this year.”
Shares in China Bank closed at P25.40 apiece on Tuesday, gaining 10 centavos or 0.40% from the previous day’s finish. — Beatrice M. Laforga