Sy-led bank China Banking Corp. has infused additional capital to its thrift bank arm to help fund the latter’s robust lending business.
In a disclosure to the Philippine Stock Exchange on Thursday, China Bank said its board of directors approved the infusion of P500 million into China Bank Savings Inc. (CBSI) on or before December 31.
China Bank said this additional capital will support China Bank Savings’ fast loans growth. The additional infusion raises China Bank’s capital investment in CBSI to P6.5 billion since September 2014.
China Bank Senior Vice President Alex Escucha earlier said the bank is confident of hitting its hit P6.4-billion net income goal for 2016 on the back of its healthy loan business and the contribution streams from its thrift bank unit China Bank Savings.
The bank is retaining its capital expenditure program of P1 billion a year, which will be evenly allotted to branch expansion and IT-related expenses.
As of end-September, China Bank was operating 526 branches nationwide, including 160 China Bank Savings branches
Last month, China Bank issued an initial P5 billion worth of long-term negotiable certificates of time deposits (LTNCD) out of its P20 billion LTNCD program in support of its strategic initiatives and business growth
The P20-billion LTNCD program will be issued in tranches of P5 billion to P10 billion each, with tenors ranging from five to seven years.
Established in 1920, China Bank is an affiliate bank of the SM Group which is owned by the richest man in the Philippines, Henry Sy. It mainly caters to the small and medium enterprises (SME) market while also offering banking services to other markets whether corporate, commercial, or retail.