China Banking Corp., one of the largest private universal banks in the country and owned by the Sy Group, is open to the possibility of tying up with foreign partners, especially those that could further intensify its growth momentum and digitization efforts.
“Our bank is open to strategic investors who can bring value to our business, like introducing technology and bringing competitive advantage to the bank,” bank president William Whang said in an annual stockholders’ meeting May 5.
ChinaBank emerged as the second strongest bank in the Philippines and among the top 20 percent in the Asia-Pacific region in The Asian Banker’s ranking of 500 strongest banks in 2021. It made the biggest leap among the nine Philippine banks included in the prestigious list, jumping from 323rd place in 2020 to 81st place last year.
At its latest regular meeting, its board of directors declared a P1.00 per share regular dividend and an additional P0.50/share special dividend, reflecting China Bank’s confidence in its underlying strength and future prospects.
The total cash dividends of P4.04 billion is 50 percent higher compared with P2.69 billion paid last year. They translated into a better cash dividend yield of 5.6 percent based on the bank’s closing price of P26.70 as of May 4, 2022.
The cash dividends represent 27 percent of the full year 2021 net income of P15.1 billion. The dividends will be paid on June 3, 2022 to stockholders on record as of May 20, 2022.
The bank recorded net profits of P4.9 billion in the first quarter of 2022, 37 percent up in the same period last year. The improved profitability, driven by sustained core business growth, yielded a higher return on equity of 16 percent and a better return on assets of 1.7 percent. Julito G. Rada
Whang said as the Philippine economy continued to recover from the COVID-19 pandemic, China Bank’s net interest income rose 15 percent year-on-year to P10.8 billion on the back of higher earning assets and lower interest expense.
Net interest margin further improved to 4.3 percent. Meanwhile, lower trading gains compressed fee-based income to P1.7 billion, despite an 18-percent increase in service charges, fees, and commissions and a 22-percent jump in trust fees.
“China Bank’s organic growth momentum continues—loans and deposits are up, expenses are down, and credit quality remains solid,” Whang said.
Total assets expanded 12 percent to P1.1 trillion. Asset quality remained healthy as non-performing loan ratio was maintained at 2.5 percent as of end-March 2022, still lower than industry average.