CHINA BANKING Corp. (China Bank) and its subsidiaries posted a higher net income in the first half of the year on the back of continued growth in its loans and deposits.

In a statement on Wednesday, China Bank said it booked a consolidated net profit of P4.2 billion in the first semester, up 18% from the same period last year.

For the second quarter alone, its net income jumped 27% versus the previous quarter, the bank said. China Bank booked a P1.9-billion net income in the first quarter. Its quarterly report was not immediately available yesterday.

“Our strong financial performance in the first half reflects our good fundamentals that provide the foundation for sustainable growth. As we continue to build on our strengths, we are confident about meeting our goals for the year and delivering value to our customers and other stakeholders,” China Bank President William C. Whang was quoted as saying in the statement.

Return on equity stood at 9.45%, while return on assets was at 0.95%.

China Bank said its net interest income went up 6% to P11.7 billion in the first half on the back of double-digit growth in loans and securities.

Fee-based income climbed 61% to P3.4 billion, driven by higher trading gains and service fees and commissions.

The bank’s resources stood at P908 billion at end-June, up 18% year-on-year.

Gross loans totalled P533 billion, up by 12%, “driven by stronger demand across all customer segments,” China Bank said.

Despite the expansion, the bank’s non-performing loans (NPL) ratio improved to 1.2% at end-June from 1.5%, while NPL coverage expanded to 148%.

Meanwhile, deposits grew 15% to P750 billion, which China Bank said was on the back of a 15% increase in current and savings accounts.

The bank’s total capital funds went up 8% to P90.4 billion. Its common equity Tier 1 ratio stood at 12.9%, while its total capital adequacy ratio was at 13.8%.

Last month, China Bank listed on the Philippine Dealing & Exchange Corp. P30 billion raised via its maiden peso bond offering.

The one-and-a-half year debt papers carry an interest rate of 5.7% per annum to be paid on a monthly basis until January 2021.

The bonds offered from June 10-28 mark the first tranche of China Bank’s P75-billion fund-raising program for the next three years intended to support expansion and strategic initiatives.

China Bank shares went up 10 centavos or 0.38% to close at P26.45 apiece on Thursday. — B.M. Laforga