Chinabank posts record-high first half 2024 net income of P11.4B
Chinabank posts record P11.4B net income for H1 2024
China Banking Corporation (Chinabank, PSE Stock symbol: CBC) saw its net income from January to June 2024 rise to a record P11.4 billion, up 6% compared to the same period last year on the back of stronger core lending and deposit-taking activities. This translated to a return on equity of 15.1% and a return on assets of 1.5%, still among the highest in the industry.
“Our business performance continued to improve during the first half of the year,” CBC President & Chief Executive Officer Romeo D. Uyan Jr. said. “The continued growth of our core lending and deposit taking businesses, combined with stable asset credit quality and controlled operating costs, allowed us to register our highest 1st half net income to date, solidifying our position as one of the top four banks in the country.”
Net interest income hit P30.4 billion, up 19% year-on-year as higher interest income offset the rise in interest expense, resulting to a 25-basis point improvement in net interest margin to 4.4%.
Credit quality improved amid significant loan expansion, with a better-than-industry non-performing loan (NPL) ratio of 1.9%. CBC booked lower credit provisions at P737 million but NPL coverage remained above industry at 141%.
Operating expenses went up by 5% to P14.1 billion mainly on higher volume-related taxes. Cost-to-income ratio slightly improved to 49%.
CBC is still the country’s fourth largest private universal bank, with total assets of P1.5 trillion, up 12%. Gross loans increased by 10% to P817 billion on strong demand across market segments. Consumer loans, in particular, which accounted for a quarter of the bank’s total loan portfolio, increased by 25%. Meanwhile, deposits grew faster than the industry average to P1.3 trillion, up 14%.
The balance sheet expansion was supported by a 10% hike in capital to P152 billion. CBC’s CET1/Tier 1 ratio of 14.5% and total capital adequacy ratio of 15.3% remained well above regulatory requirements. Book value per share increased by 10% year-on-year to P56.42.
“This solid financial performance, backed by strong capital and liquidity, reflects CBC’s inherent financial strength, prudent risk management, and sharpened customer focus,” Chief Finance Officer Patrick D. Cheng said.
CBC is celebrating its 104th anniversary on August 16. Other milestones include winning the Asian Banking & Finance's Domestic Retail Bank of the Year (Philippines) award, inclusion in the inaugural Fortune Southeast Asia 500 list, and successfully launching its brand refresh program to modernize its image and to connect with a new generation of customers.
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