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Chinabank hits record P18.4B net income in nine months

Achieves record-breaking profits on the back of robust core business growth

China Banking Corporation
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China Banking Corporation

Chinabank reports P18.4 billion in net income for January to September 2024, reflecting a 13% increase fueled by strong lending and strategic focus.


Chinabank (PSE stock symbol: CBC) booked record earnings from January to September 2024 on the back of sustained strong growth from core businesses.
Net income reached P18.4 billion in the first nine months, up 13% year-on-year, translating to a return on equity of 15.7% and return on assets of 1.6%—still among the highest in the industry.
“This record performance is the result of the hard work of our employees, the continued execution of our strategies, and our steadfast focus on the needs of our customers,” CBC President & Chief Executive Officer Romeo D. Uyan Jr. said.
The bank’s total operating income rose 14% year-on-year to P46.3 billion, driven by higher interest income from loans, securities and other investments, coupled with growth in transaction-based income. Net interest margin improved to 4.4%.
As it responded positively but prudently to companies’ heightened business appetite and consumers’ greater demand for credit, CBC’s loan portfolio hit P871.6 billion, up 14% as both business and consumer lending segments grew. Asset quality improved, with non-performing loans (NPL) ratio easing to 1.8% during the period.
Due to the bank’s conservative provisioning stance, credit provisions were hiked by 15% to P1.5 billion resulting in NPL cover of 141%, higher than the industry average.
Despite bigger volume-related taxes, growth of operating expenses was controlled at 9% to P22.0 billion on careful spending. Cost-to-income ratio was at 48%.
“We sustained our strong asset expansion and continued to be very purposeful in using CBC’s resources to pursue our growth plans and to boost our capabilities to better serve our customers. The improving macro trends and supportive regulatory environment will help the bank’s performance," Chief Finance Officer Patrick D. Cheng said.
The country’s 4th largest private domestic bank, CBC’s total assets expanded by 13% to P1.6 trillion as of end-September. Deposit generation was faster during the period, with total deposits reaching P1.3 trillion, up 13%.
Total capital reached P162.7 billion, up 15%, with Common Equity Tier 1 Ratio at 14.8% and Total Capital Adequacy Ratio at 15.7%, well above the minimum regulatory requirement. Book value per share grew by 15% to P60.43.
Alongside CBC’s record performance, its multiple awards reinforce its reputation in a competitive market. The bank recently won a dozen awards, cementing its position as a frontrunner in consumer finance in the Philippines. The Asian Banker named Chinabank Destinations Mastercard as the Best Credit Card for Travelers and Chinabank HomePlus as the Best Home Loan Financing in the country. Other prestigious international magazines like Global Banking & Finance Review, World Economic Magazine, Global Business Magazine, and Brands and Business Magazine also distinguished CBC for its outstanding credit card and home loan products.
At the same time, the bank continued to prove its excellence in wealth management and corporate governance. CBC clinched its second Outstanding Wealth Management Service for the Affluent award from Private Banker International, and its third consecutive Five-Golden Arrow Award from the Institute of Corporate Directors.

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