China Bank income hits P1.9B
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Fri, 03 May 2019 16:26:03 +0000
CHINA Banking Corp. (China Bank) reported on Friday that its net income rose to P1.9 billion in the first quarter of the year, driven by the continued robust growth of its core businesses.
In a disclosure, the listed lender said the amount was a 26-percent increase from P1.5 billion in the same period of 2018.
The improved income allowed China Bank to post 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,” China Bank President William Whang said.
Net interest income for the first three months grew by 12 percent to P5.9 billion, boosted by the 41-percent jump in interest revenues from loans.
This was said to have complemented by the 52-percent increase in non-interest income to P1.3 billion, attributable to fees, service charges and commissions, among others.
Higher interest expense, however, compressed China Bank’s net interest margin to 2.94 percent.
Total operating income grew by 18 percent to P7.2 billion, while total operating expense increased by 13 percent to P4.8 billion, as the lender said it continued to strengthen and expand operations.
The lender’s cost-to-income ratio improved to 66 percent from 69 percent year-on-year.
China Bank maintained its balance sheet strength, growing in all areas of operation, while total assets expanded by 23 percent to P889 billion in tandem with the growth of the bank’s core businesses.
Gross loans grew by 13 percent to P515 billion, driven by strong demand from all customer segments. Deposits by rose 17 percent to P720 billion, underpinned by a 20-percent increase in checking and savings accounts.
Its asset quality continued to improve with a 1.2 percent gross non-performing loans (NPL) ratio. NPL coverage ratio stood at 169 percent
Its 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.
China Bank shares increased by 85 centavos or 3.19 percent to close at P27.50 each on Friday.
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