Listed China Banking Corporation (Chinabank) is on a roll.
Following a banner year in 2024, the bank is setting its sights even higher, announcing plans to raise up to P100 billion over the next three years to propel its expansion and strategic initiatives. This ambitious fundraising plan comes on the heels of the bank’s impressive performance in the first three quarters of 2024.
The bank reported a record-breaking P18.4 billion in net income, a remarkable 13.5% increase compared to the same period in 2023. This stellar performance translates to a return on equity of 15.7% and a return on assets of 1.6%, placing Chinabank among the industry leaders in profitability.
“This record performance is a testament to the dedication of our employees, the unwavering execution of our strategies, and our unwavering commitment to serving our customers’ needs,” declared Chinabank President and CEO Romeo Uyan Jr.
Strategic investments fueling Chinabank’s growth
Chinabank’s robust financial health is attributed to a combination of factors. The bank witnessed a 14% surge in operational income, reaching P46.3 billion between January and September 2024.
This growth is primarily driven by a rise in transaction-based income and increased interest income from loans, securities, and other assets.
Furthermore, Chinabank has demonstrated a commitment to fiscal responsibility. Despite an increase in transaction-related taxes, the bank managed to keep operational expense growth at a manageable 9%, translating to P22 billion. This resulted in a healthy cost-to-income ratio of 48%.
“We’ve maintained a rapid pace of asset growth while remaining highly deliberate in our resource allocation to support our expansion goals and enhance our ability to deliver exceptional customer service,” explained Patrick Cheng, Chief Finance Officer of Chinabank.
“The favorable regulatory environment and strengthening macrotrends will further bolster the bank’s performance, as we previously anticipated,” he added.
To usher in a happy new year, the bank also introduced CHIB GPT 2.0, a significant upgrade to its internal chatbot service designed to further revolutionize employee productivity. Building on the success of its predecessor, CHIB GPT 1.0, which saw a remarkable 12-fold increase in query volume, the new and improved chatbot leverages the power of GPT-4.0 to deliver smarter, faster, and more accurate support.
Building a strong foundation for the future
Chinabank’s financial strength is evident across all key metrics. By September 2024, the bank’s total assets had climbed 13% to a staggering P1.6 trillion, while its deposit base grew by a similar margin, reaching P1.3 trillion.
The bank’s capital adequacy remains robust, with a common equity tier 1 ratio of 14.8% and a total capital adequacy ratio of 15.7%, both exceeding the minimum regulatory requirements. This translates to a total capital increase of 15% to P162.7 billion.
Chinabank’s commitment to serving a diverse clientele is reflected in its extensive network.
With 648 branches and 1,082 ATMs nationwide, including those of its subsidiary China Bank Savings, Chinabank offers a comprehensive suite of banking products and services to cater to the needs of corporate, commercial, and retail clients.
Looking ahead: A P100-billion springboard
The P100 billion fundraising initiative signifies Chinabank’s unwavering commitment to growth. The bank intends to utilize these funds through a combination of commercial papers and retail bonds issued in multiple tranches.
This strategic approach will provide Chinabank with the flexibility to manage its funding needs efficiently.
The proceeds from this fundraising effort will fuel Chinabank’s expansion plans, allowing the bank to invest in bolstering its lending operations, expanding its branch network, and further developing its technological and digital capabilities.
These investments will solidify Chinabank’s position as a leading player in the Philippine banking sector and enable the bank to deliver exceptional value to its customers in the years to come.
Chinabank’s remarkable performance and ambitious expansion plans paint a promising picture for the future.
With a solid financial foundation, a strategic vision, and a commitment to innovation, Chinabank is poised to continue its upward trajectory and play a pivotal role in the growth of the Philippine economy.