China Banking Corp. on Thursday said consolidated net income grew by 15 percent in the first quarter of 2016, driven by a steady growth of core businesses and an increase in non-interest revenue.
In a statement, China Bank said it posted a consolidated net income of P1.39 billion January to March, up 15 percent from a year earlier.
The comprehensive bottom line translates to a 9.23-percent return on equity and 1.05-percent return on assets.
Net revenue before operating expenses grew by 10 percent to P5.27 billion. Net interest revenue was up 6 percent at P3.92 billion, buoyed by an 11-percent growth in loan portfolio.
Non-interest revenue rose by 27 percent at P1.35 billion. Trading gains increased to P466 million from P233 million, while trust fees increased by 35 percent. The bank also gained from sales of acquired assets.
China Bank said total operating expenses grew by 8.9 percent at P3.6 billion, even as it continued a network expansion and embarked on new product initiatives.
While an 11-percent growth in loans to P 318 billion was below the industry trend, 68 percent of year-on-year growth in lending was accounted for by consumer and commercial transactions.
The bank’s consolidated consumer portfolio grew by 23 percent, with housing loans up 24 percent and auto loans 18 percent.
The savings bank consumer portfolio recorded robust gains of 31 percent in housing loans and 24 percent in auto loans, while growing its personal loans portfolio with a focus on teachers’ loans.
“We are gratified with the double digit growth in our first quarter results. Our strategic thrusts of sustaining our core businesses and strengthening our fee-based businesses, even as we continue to expand our network, are starting to bear fruit,” China Bank President and Chief Executive Officer Ricardo Chua said.