China Banking Corp. booked P3.64 billion in net income during the first nine months of the year, up 8 percent from a year earlier due to strong lending and lower cost of funds.
Return on equity (ROE) was 8.35 percent and return on assets (ROA) was 1.02 percent.
In a statement, the bank said net income was mainly driven by net interest income which climbed by 8 percent to P11.17 billion in January to September.
Net interest income was fueled by an 8-percent improvement in loans and a 6-percent drop in interest expenses.
Non-interest income, on the other hand, dipped by 3 percent to P2.96 billion as trading gains declined by 5 percent to P365.22 million, offsetting the 15 percent increase in fee-based earnings of P1.38 billion.
The bank’s total operating income rose by 5 percent to P14.12 billion as it “continued to strengthen its operations with new technologies and more branches, ATMs, and people.”
Total assets increased by 4 percent to P472.06 billion, while capital funds improved by 6 percent to P57.74 billion.
Its common equity tier 1 stood at 13.21 percent and capital adequacy ratio at 14.13 percent.
China Bank is an affiliate bank of the Henry Sy-led SM Group. The bank mainly caters to the small and medium enterprises.