Chinabank (PSE stock symbol: CBC) recorded its highest-ever net income for the first nine months of 2024, achieving a P18.4 billion profit on the back of robust growth in its core businesses.
This impressive figure represents a 13% year-on-year increase, translating to a return on equity of 15.7% and a return on assets of 1.6% — placing Chinabank among the most profitable in the Philippine banking sector.
“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,” said Chinabank President and Chief Executive Officer Romeo D. Uyan Jr., highlighting the bank’s strategic focus and customer-centric approach as key factors in its financial success.
Chinabank gains from efficient management of lending, investment activities
Total operating income surged 14% from the previous year to reach P46.3 billion, driven primarily by higher interest income from loans, securities, and other investments, alongside a boost in transaction-based income. The bank’s net interest margin improved to 4.4%, reflecting efficient management of its lending and investment activities.
Chinabank’s loan portfolio grew to P871.6 billion, marking a 14% increase as demand for both business and consumer loans strengthened. This growth aligns with the bank’s strategy to prudently meet the rising credit needs of companies and consumers alike.
Meanwhile, asset quality improved, with the non-performing loan (NPL) ratio easing to 1.8%, underscoring CBC’s commitment to maintaining a stable portfolio. In line with its conservative approach to credit risk, the bank increased its loan provisions by 15% to P1.5 billion, resulting in an NPL coverage ratio of 141%, higher than the industry average.
Despite larger volume-related taxes, Chinabank managed to control operating expenses, which grew by just 9% to P22.0 billion. This disciplined spending helped the bank maintain a cost-to-income ratio of 48%, signalling efficient operational management amid expanding business volumes.
“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,” said Chief Finance Officer Patrick D. Cheng in a press release.
Cheng added that favorable macroeconomic trends and a supportive regulatory environment would likely continue to bolster the bank’s performance in the coming months.
Chinabank is now the fourth-largest private domestic bank in PH
The bank’s total assets rose by 13% to P1.6 trillion as of the end of September, securing Chinabank’s position as the fourth-largest private domestic bank in the country.
Deposit generation outpaced previous periods, with total deposits reaching P1.3 trillion, reflecting a 13% growth fueled by both retail and corporate customers.
Total capital rose by 15% to P162.7 billion, with a Common Equity Tier 1 (CET1) Ratio of 14.8% and a Total Capital Adequacy Ratio of 15.7%, both of which are above regulatory minimums. Book value per share also grew by 15% to P60.43, demonstrating CBC’s continued value creation for its shareholders.
Chinabank’s strong performance has not gone unnoticed, as the institution recently received multiple prestigious awards. The Asian Banker awarded the Chinabank Destinations Mastercard as the Best Credit Card for Travelers and named the Chinabank HomePlus as the Best Home Loan Financing in the Philippines.
Global Banking & Finance Review, World Economic Magazine, Global Business Magazine, and Brands and Business Magazine also honored CBC for its standout credit card and home loan products.
Accolades on wealth management and corporate governance
Earlier this month, the bank also achieved another milestone after being named among Time Magazine’s world’s best companies in 2024. Ranked among the top 1,000 firms worldwide, Chinabank was recognized for excelling in three key areas: employee satisfaction, revenue growth, and ESG (environmental, social, and corporate governance) performance.
The bank’s accolades also extend to wealth management, as CBC was recognized for its excellence in catering to affluent clients and in corporate leadership.
Chinabank clinched its second Outstanding Wealth Management Service for the Affluent award from Private Banker International, and received its third consecutive Five-Golden Arrow Award from the Institute of Corporate Directors, affirming its adherence to the highest standards of corporate governance.
Chinabank’s strong nine-month performance reflects its strategic execution, customer-centered growth, and solid risk management practices.
As the bank continues to expand its services and optimize its resources, it is well-positioned to support the evolving financial needs of its customers and stakeholders in the competitive Philippine banking landscape.