China Bank posts P5.7-b net income
CHINA Banking Corp., the eighth-largest lender in terms of assets, said consolidated net income in the first nine months rose 17 percent to P5.68 billion year-on-year due to the strong growth of core and fee-based businesses.
The bank said in a disclosure to the stock exchange the strong performance in the first three quarters translated into a consolidated return on equity of 10.41 percent and a consolidated return on assets of 1.16 percent, with the parent bank posting a ROE of 11.41 percent and ROA of 1.32 percent.
“China Bank continues to deliver positive results on the back of strong growth in our core banking businesses,” said bank president William Whang, who assumed his post this month.
He said the better-than-expected results reflected the fruits of the bank’s strategic initiatives since it began the expansion phase 10 years ago with the Manila Bank acquisition
“Our distribution network has grown almost four times from only 148 branches in 2007 to 569 branches as of September 2017, of which 158 are from China Bank Savings. The savings bank subsidiary has turned around to full profitability in 2016 and is in a better position to significantly contribute to the growth in customer base and revenues,” he said.
China Bank Capital, meanwhile, remained a major player in the capital markets, with China Bank Securities completing its full-service capability highlighted by its first initial public offering for Eagle Cement.
Data showed that the consolidated net income of P2.09 billion in the third quarter was 32 percent higher over the same quarter last year.
Julito G. Rada
Net interest revenues grew 16 percent year-on-year to P14.26 billion, while non-interest income rose 17 percent to P4.90 billion despite the P611.43-million drop in trading gains.
Core operating income, excluding trading gains and non-recurring income, increased 19 percent on year, reflecting continued robust growth in recurring income from service charges, fees from investment banking and trust, as well as income from asset sales.
Total assets expanded 23 percent year-on-year to P692.74 billion. Gross loans portfolio grew faster than industry at 25 percent to P434.81 billion. Julito G. Rada