CHINA Banking Corp., a listed affiliate of the SM Group, said its consolidated net income posted double-digit growth in the first half of the year on the sustained expansion in its core and fee-based businesses.
In a statement on Thursday, China Bank said it posted a consolidated net income of P3.27 billion for the first six months of 2016, 30 percent higher than the P2.51 billion income recorded for the same period last year.
For the second quarter alone, the bank’s net profit rose 35 percent to P1.88 billion from the P1.39 billion booked in the first quarter.
China Bank said its net income for end-June translates to a return on equity (ROE) of 10.74 percent and a return on assets (ROA) of 1.22 percent.
Its net revenues before operating expenses grew 15 percent to P10.85 billion, with net interest revenues up 7 percent at P7.95 billion, “driven by the 12 percent growth in loan portfolio.”
The lender said its non-interest revenues rose 42 percent to P2.90 billion, “supported by significantly higher trading gains to P993.52 million from P345.91 million, and a 16 percent increase in service charges, fees and commissions.”
Total operating expenses grew by a manageable 11 percent to P6.7 billion, even as it continued its network expansion and embarked on new product initiatives.
Ricardo Chua, China Bank president and chief executive officer, said the bank is encouraged by the strong positive results in the first half despite the challenging market
“Our core business drivers are showing healthy growth, our various initiatives are gaining traction, and China Bank Savings is well on its way to make a significant contribution to group profitability this year,” he added.
Total assets increased 16 percent year-on-year to P555.55 billion, driven by loans and deposit growth.
Its net loans expanded 12 percent year-on-year to P324 billion, underpinned by a strong 24 percent increase in consumer loans.