• China Bank 1H profit up 46% to P2.96B


    The profit of China Banking Corp., one of the banking arms of listed conglomerate SM Investments Corp., during the first half of the year grew 46 percent on the back of hefty improvements in its core operations.

    In a disclosure to the Philippine Stock Exchange, the bank reported that it posted a 46-percent growth in its consolidated profits for the first semester to almost P3 billion from the P2 billion recorded during the same period last year.

    China Bank further said that the strong income performance translates to a return on average equity of 13.2 percent, and a return on assets of 1.8 percent.

    Net interest income of the bank also grew by 12 percent to P4.4 billion as total gross loans expanded 10.7 percent to P190 billion, which was driven by increased commercial, mostly from mid-sized businesses and consumer loans.

    China Bank’s non-interest income, on the other hand, went up 44 percent to P3.5 billion from trading gains, commissions, sale of acquired assets and fees from new revenue streams like bancassurance.

    Also, the company’s gross revenues improved 18 percent to P10.2 billion, driven by higher fee-based revenues, while its total operating expenses increased 15 percent to P4.5 billion, translating to a cost efficiency ratio of 56.8 percent, as the bank continued to make hefty investments to expand its operations.

    China Bank bought Unity Bank in the prior year that was merged with its thrift bank subsidiary China Bank Savings (CBS), and opened a total of 12 branches to date, including mini branches in Savemore Market.

    China Bank’s Tier 1 capital adequacy ratio (CAR) and total CAR remain well above the regulatory minimum at 17.11 percent and 17.96 percent, respectively.

    China Bank now has 300 branches nationwide which it plans to expand to 415 by 2014. The bank said that it is on track with its expansion plans, with 17 China Bank branches and 36 CBS branches in the pipeline this year.


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