China Banking Corp. said its lending business and core-recurring income translated to a double-digit rise in net profit during the first six month of the year.
Net income reached P3.6 billion in the first half of 2017, up 10 percent from P3.26 billion a year earlier, the bank said in a disclosure to the Philippine Stock Exchange on Thursday.
In the second quarter alone, net income surged 12 percent to P2.12 billion from P1.88 billion.
The first half profit translates to a return on equity of 10.44 percent and return on assets of 1.13 percent.
Net interest revenue grew by 16 percent to P9.2 billion, while non-interest revenue went up 6 percent at P3.1 billion. A drop in trading gains was offset by higher service charge, fees from bancassurance, investment banking and trust, as well as income from asset sales.
Excluding trading gains and one-off items, the lender’s operating income grew by 18 percent reflecting robust growth in earnings from core businesses.
“The results for the first half of the year is an encouraging indication of China Bank team’s ability to execute on our strategic direction of strengthening our core businesses while achieving revenue diversification,” China Bank President and Chief Executive Officer Ricardo Chua said.
“The network expansion started 10 years ago continues apace, while the substantial investments in recent acquisitions and subsequent integration are starting to bear fruit,” he added.
China Bank’s gross loan portfolio grew by 22 percent to P401.7 billion—faster than the industry—as all segments showed robust growth.
Consumer loans grew by 25 percent for both China Bank and its savings bank subsidiary while commercial loans grew by 10 percent.
The lender said its loans to the corporate segment rose by 25 percent as the bilateral loans generated by the Institutional Banking Group were boosted by bookings arising from deals generated by China Bank Capital, which has continued to reinforce its presence in the corporate market.
China Bank said its asset quality continued to improve in both absolute amounts and non-performing loans (NPL) ratio of 1.81 percent—better than the industry average of 1.94 percent. Consolidated NPL coverage ratio also improved to 92.8 percent, with the parent bank ratio better than industry average.
Total assets reached P657.5 billion, up 18 percent, as the bank’s customer base and market share grew with the expansion of its branch network.
China Bank has 563 branches, more than triple its branch network in 2006, of which 156 are China Bank Savings.