CHINA Bank Corp., a listed affiliate of the SM Group, has reported a 14-percent increase in net income at P2.51 billion during the first six months of 2015 from P2.2 billion a year earlier.
In a statement, the bank said it sustained a strong growth in core businesses that led to a double-digit growth in profits. The net income translates to a return on equity of 8.67 percent and a return on assets of 1.06 percent.
Operating income was up 8 percent to P9.47 billion, while operating expenses was tempered – growing by 6 percent to P6.01 billion despite acceleration in its expansion plans. This led to a cost efficiency ratio of 63.46 percent from 65.01 percent.
Net interest income grew by 9 percent to P7.42 billion due to higher loan volume and lower interest expense which dropped 9 percent to P2.06 billion. Net interest margin settled at 3.36 percent in January to June.
Non-interest income increased by 4 percent to P2.05 billion on higher trading gains and fees and commissions.
Total assets rose by 5 percent to P479.29 billion on the back of loan and deposit growth.
Net loans climbed 10 percent to P289.32 billion due to a 26-percent improvement in consumer loans. Total deposits increased by 3 percent to P399.45 billion.
Capital funds went up 6 percent to P58.81 billion. The bank’s common equity Tier 1 ratio stood at 13.58 percent while total capital adequacy ratio settled at 14.49 percent – both measures within the central bank minimum requirement of 10 percent.
China Bank said it is on track plan to add 30 branches this year. Seven China Bank branches and eight China Bank Savings (CBS) have been opened as of end-June. At present, the bank has 321 China Bank, 86 CBS and 78 Plantersbank branches.
The bank mainly caters to small and medium enterprises.