China Banking Corp. (Chinabank) said Tuesday its net income soared to a record P22 billion in 2023, up 12 percent from the 2022 level, led by higher core business revenues.
This translated into a return on equity of 15.5 percent and return on assets of 1.6 percent.
“Our strong growth in 2023 solidifies our position as one of the top four banks in the country,” Chinabank president and chief executive Romeo Uyan Jr. said.
“We remain focused on executing our business strategies while leveraging our investments in digitalization to deliver better services to our customers,” Uy said.
Net interest income rose 17 percent to P53.5 billion on the back of strong growth in loans, while investments offset the significantly higher interest expense.
Net interest margin was maintained at 4.2 percent.
Given the improving economic conditions, the bank reduced its loan loss provisions to P1.2 billion. Asset quality was stable with a 2.5 percent non-performing loan (NPL) ratio, while NPL coverage stood at 104 percent.
Operating expenses rose 11 percent to P27 billion, on bigger volume-related taxes and heavier investments in manpower and IT.
The bank also reported that substantial overhauls were underway within its IT architecture as an integral component of its ongoing digital transformation plans.
Chinabank remained the fourth-largest private domestic bank, with total assets of P1.5 trillion, up 11 percent year-on-year.
Gross loans grew 10 percent to P791 billion, with the share of consumer loans to the total loan portfolio now at 23 percent.
Total deposits rose 11 percent to P1.2 trillion with CASA (current and savings account) ratio at 48 percent. Total equity reached P150 billion, up 12 percent, with common equity tier 1 ratio at 15.3 percent and total capital adequacy ratio at 16.1 percent.
Chinabank chief finance Patrick Cheng said the bank would continue to strengthen its business fundamentals and capabilities to sustain its growth momentum in the coming years.