China Banking Corp. saw its net income climb by 23 percent in the first nine months as it sustained the growth of core businesses.
In a disclosure on Thursday, the Sy-led bank said it posted P8.2-billion net income from January to September, translating to a return of equity of 11.15 percent.
For the third quarter alone, its net earnings improved by 21 percent to P3 billion year-on-year.
Loans and deposits in the first nine months increased by 6 percent to P595 billion and P827 billion, respectively. Total assets stood at P1 trillion as of end-September, earlier than its year-end target.
“The year 2020 has been very challenging, but with the hard work and commitment of our employees, we are able to pull through and provide the needed banking services and support to our clients,” China Bank President William C. Whang said. “We are still expecting continuing challenges from a difficult environment, and the results give us the buffer to absorb further stresses down the road.”
The shares of China Bank skidded by 0.23 percent, or 5 centavos, to settle at P21.60 each amid the 2.01-percent plunge for the benchmark index last Thursday.
The bank said its 9-month net interest income soared by 35 percent to P25 billion on the back of lower interest expenses, resulting in higher net interest margin of 3.89 percent.
Fee-based income in the January-September period, meanwhile, surged by 35 percent to P7 billion because of higher trading gains and revenues from trust business.
China Bank increased its loan loss reserves by 12 times to P6.3 billion. Nonperforming loans ratio and NPL coverage stood at 2.5 percent and 104 percent in the first nine months.
The bank’s capitalization rose by 9 percent to P101 billion as of end-September. Capital adequacy ratio stood at 13.99 percent for the period, which is above minimum regulatory requirement.
“Amid the pandemic, China Bank’s capital and liquidity position remains strong. We continue to productively deploy resources to drive strategic growth, finance our clients’ needs, and contribute to the country’s economic recovery,” China Bank Chief Finance Officer Patrick D. Cheng said.
Earlier this month, China Bank raised over P15 billion from its fixed rate bond offering.