China Banking Corp. said Monday its net income grew 18 percent in the first quarter of 2024 to P5.9 billion from a year ago on the robust growth of its core businesses.
Net interest income rose 18 percent in the three-month period to P15 billion, driven by higher asset yields and loan volume. Net interest margin improved by 22 basis points to 4.4 percent.
“We are focused on sustaining our growth trajectory. Our good first quarter results provide the momentum to achieving our ambitious goals and targets,” Chinabank president and chief executive Romeo Uyan Jr. said.
Return on equity and return on assets stood at 15.5 percent and 1.6 percent, respectively.
The bank said it reduced its provisions for loan losses to P302 million as economic conditions continued to improve.
The country’s fourth-largest private lender recently launched a brand refresh campaign to make its brand and image more resonant and engaging to a new generation of customers.
“From compelling product innovations to reimagined customer-facing solutions, to the adoption of a new bank logo, exciting things are happening in Chinabank,” Uyan said.
Chinabank’s total assets went up by 11 percent to P1.5 trillion. Its gross loans increased 11 percent to P805 billion on strong loan demand from businesses and consumers.
Non-performing loans (NPL) ratio eased to 1.8 percent, and NPL coverage improved to 143 percent.
Total deposits expanded by 13 percent to P1.2 trillion.
The bank’s capital rose 11 percent to P154 billion, with a common equity tier 1 (CET-1) ratio of 15.3 percent and total capital adequacy ratio (CAR) of 16.2 percent.
“With our strong balance sheet and capital position, we can sufficiently fund our growth plans in the years ahead,” China Bank chief finance officer Patrick Cheng said.
Chinabank earlier announced an all-time high cash dividends of P5.9 billion, representing 27 percent of its 2023 net income of P22 billion.
The bank’s stockholders on record as of May 3, 2024 will receive P1.20 per share regular cash dividend and an additional P1.00 per share special cash dividend on May 16, 2024.
