China Banking Corp., the seventh-largest lender in terms of assets, said net income in the first quarter jumped 24 percent to P1.9 billion year-on-year, driven by the continued robust growth of its core businesses.
The bank said in a statement Friday said the January-to-March performance translated into a return on equity of 8.42 percent and return on assets of 0.86 percent.
“We are gratified that our first-quarter results reflect the sustained growth in our businesses and the result of various initiatives,” said China Bank president William Whang.
Net interest income in the first quarter rose 12 percent to P5.9 billion, boosted by the 41-percent jump in interest revenues from loans. This was complemented by the 52-percent increase in non-interest income to P1.3 billion.
Higher interest expense, however, compressed the net interest margin to 2.94 percent.
Total operating income increased18 percent to P7.2 billion, while total operating expense climbed 13 percent to P4.8 billion as the bank continued to strengthen and expand its operations. The cost-to-income ratio improved to 66 percent from 69 percent year-on-year.
China Bank maintained its balance sheet strength, expanding in all areas of operation. Total assets expanded 23 percent to P889 billion in tandem with the growth of the bank’s core businesses.
Gross loans rose 13 percent to P515 billion, driven by strong demand from all customer segments. Deposits improved 17 percent to P720 billion, underpinned by a 20-percent increase in checking and savings accounts.
Asset quality continued to improve, to a lower gross non-performing loans ratio of 1.2 percent. NPL coverage ratio stood at 169 percent.
The bank’s financial position remains solid, with total capital of P89 billion, equivalent to a tier 1 capital adequacy ratio (CAR) of 12.9 percent and total CAR of 13.8 percent.
The bank recently declared record-high P2.4 billion cash dividends, equivalent to 8.8 percent or P0.88 per share, 6 percent higher than the previous year’s cash dividends.