spot_img
29 C
Philippines
Thursday, March 28, 2024

ChinaBank plans P15-b rights issue

- Advertisement -

China Banking Corp., the eighth-largest lender in terms of assets, said Thursday it will raise up to P15 billion through rights issuance to fund growth strategies.

China Bank said in a disclosure to the stock exchange the planned issuance was already approved by board of directors in a special meeting.

“The bank expects to raise proceeds of up to P15 billion for the rights issue. The additional capital will enable the bank to pursue growth strategies,” China Bank said.

It said the issuance would be conducted “by way of offering common shares from the unissued portion of the authorized capital stock of the bank to eligible shareholders, subject to approval of the regulatory agencies.”

The board appointed China Bank Capital Corp. as issue manager, joint bookrunner and domestic underwriter. However, the terms and conditions of the rights issuance were not yet determined.

- Advertisement -

China Bank posted a 31-percent increase in consolidated net income to P4.84 billion in the first nine months of 2016 from a year ago, on strong lending and fee-based businesses. 

The nine-month profit translated into a return on equity of 10.47 percent and a return on assets of 1.19 percent.

Total operating income grew 16 percent to P16.46 billion, with net interest income up 9 percent year-on-year to P12.26 billion, driven by the 19-percent growth in loan portfolio. 

Fee-based revenues climbed 42 percent to P4.21 billion from P2.96 billion, bolstered by trading and securities gains which surged 226 percent to P1.19 billion.

Service charges, fees and commissions rose 13 percent while income from acquired assets went up 123 percent.

Net interest margin was at 3.22 percent. China Bank said the growth of operating expenses was controlled at 9 percent to P10.08 billion even as the bank continued to strengthen its operations with new investments and more branches, ATMs and human resource complement.

Total assets expanded 20 percent year-on-year to P564.79 billion, in tandem with the growth of the bank‘s core businesses. Net loans climbed 19 percent to P343.10 billion, driven by a  24-percent growth in consumer loans.  Total deposits grew 21 percent to P472.77 billion.

- Advertisement -

LATEST NEWS

Popular Articles