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Keisha Ta-Asan - The Philippine Star
August 1, 2025 | 12:00am
The earnings translated to a 15.2-percent return on equity and a 1.6-percent return on assets, among the best in the banking sector.
STAR / File
MANILA, Philippines — China Banking Corp. (Chinabank) booked a record net income of P13 billion in the first half, up by 14 percent from a year ago, on the back of robust lending, higher yields and solid deposit growth.
The earnings translated to a 15.2-percent return on equity and a 1.6-percent return on assets, among the best in the banking sector.
“We continue to deliver strong operating results in the first semester while supporting the needs of our customers and contributing to the growth of our economy,” Chinabank president and CEO Romeo Uyan Jr. said.
Revenues surged by 34 percent to P38.9 billion, driven mainly by net interest income, which rose by 15 percent to P34.9 billion amid higher loan volume and improved asset yields. Net interest margin expanded by 13 basis points to 4.57 percent.
Chinabank’s loan book climbed by 18 percent to P964.7 billion as credit to both consumer and corporate clients picked up amid stronger economic activity and rising confidence.
Despite a lower non-performing loan ratio of 1.6 percent, well below the 3.5 percent industry average, the bank raised its credit provisions to P6.5 billion, boosting its NPL coverage to 125 percent.
Loan expansion was funded by a five-percent growth in total deposits to P1.3 trillion, buoyed by a 10-percent increase in low-cost checking and savings accounts.
Meanwhile, operating expenses went up to P16.6 billion on account of continued investments in technology, manpower and business operations. Still, the bank’s cost-to-income ratio improved to 43 percent as revenue growth outpaced expenses.
Total assets rose by eight percent to P1.7 trillion, while total equity expanded by 15 percent to P174 billion. Chinabank’s capital adequacy ratio stood strong at 15.62 percent, comfortably above the regulatory minimum. Book value per share also increased by 15 percent to P64.65.
Chinabank is the country’s fourth largest private universal bank and a member of the SM Group. It operates 650 branches and over 1,100 automated teller machines nationwide.ae
