Chinabank’s nine-month net income rises 12 per cent

China Banking Corp. (Chinabank) earned ₱22.6 billion over the first nine months, a 12 per cent increase. The bank attributed the gain to lending growth and better margins in its core banking business.

Net interest income rose to ₱60.7 billion, an increase of 14 per cent, with the net interest margin reaching 4.73 per cent. The bank recorded a return on equity of 15.6 per cent and a return on assets of 1.6 per cent.

At end-September, assets totalled ₱1.9 trillion after growing 12 per cent year-on-year. Net lending rose 19 per cent to ₱1.2 trillion. Deposits reached ₱1.5 trillion, including ₱751 billion in checking and savings accounts, which increased 19 per cent.

The nonperforming loan ratio stayed unchanged at 1.5 per cent. Provisions for impairment and credit losses amounted to ₱1.9 billion, putting coverage of nonperforming loans at 102 per cent.

Digital transformation and expansion investments drove operating costs 13 per cent higher to ₱28.6 billion. Even so, the bank’s cost-to-income ratio improved to 49 per cent.

Equity reached ₱195 billion after a six per cent increase, while book value per share advanced six per cent to ₱72.52. Chinabank’s common equity tier 1 ratio was 14.65 per cent, and its capital adequacy ratio was 15.53 per cent.