3 weeks ago
6
Keisha Ta-Asan - The Philippine Star
February 28, 2025 | 12:00am
“We continue to remain focused on executing our strategies to deliver quality service to our customers and stellar financial results to all our stakeholders,”Chinabank president and CEO Romeo Uyan Jr. said.
Businessworld / File
MANILA, Philippines — Higher core business revenues boosted the net income of Sy-led China Banking Corp. (Chinabank) by 13 percent to hit another record high of P24.8 billion in 2024.
“We continue to remain focused on executing our strategies to deliver quality service to our customers and stellar financial results to all our stakeholders,”Chinabank president and CEO Romeo Uyan Jr. said.
“Our ongoing business transformation as well as solid fundamentals will allow us to sustain our growth in the coming years,” he said.
The bank’s higher earnings translated to a return on equity of 15.6 percent and return on assets of 1.6 percent.
The bank’s net interest income grew by 19 percent to P63.5 billion on the back of asset base expansion and improvement in net interest margin to 4.5 percent. This brought the bank’s revenues to P65.5 billion, 21 percent higher than a year ago.
On the other hand, operating expenses rose by 14 percent to P30.7 billion on sustained investments in manpower, technology as well as volume-related taxes. Still, the cost-to-income ratio improved to 47 percent.
Gross loans jumped by 18 percent to P933 billion, mainly driven by higher loan demand across all customer segments. Meanwhile, total deposits grew by 12 percent to P1.3 trillion.
The bank’s non-performing loan ratio stood at 1.6 percent last year. Nonetheless, Chinabank increased its credit provisions to P3.3 billion, taking a more proactive stance against portfolio risks. NPL coverage went up at 139 percent.
Chinabank chief finance officer Patrick Cheng said the bank’s balance sheet remains strong.
“With ample liquidity and a solid capital structure, we can confidently support our institutional and retail customers and advance our growth strategies while ensuring financial stability through market volatilities and economic challenges,” he said.
The bank’s assets increased by 11 percent to hit P1.6 trillion in 2024. Its common equity tier 1 ratio stood at 15.3 percent and total capital adequacy ratio at 16.2 percent, well above the regulatory minimum.
“Chinabank’s continued strong performance coupled with enhanced investor confidence pushed its stock price to double in 2024. Starting February this year, the bank is back on the benchmark 30-member Philippine Stock Exchange Index,” the bank said.
