Makati—(PHStocks)—China Banking Corp. (China Bank, PSE: CHIB) posted a consolidated net income of PhP4.84 billion from January to September 2016, 31% higher than the profits recorded for the same period last year, attributable to the strong growth in its core and fee-based businesses. This translates to a return on equity (ROE) of 10.47% and a return on assets (ROA) of 1.19%.
Total operating income grew 16% to PhP16.46 billion, with net interest income up 9% year-on-year to PhP12.26 billion, driven by the 19% growth in loan portfolio. Fee-based revenues improved 42% to PhP4.21 billion from last year’s PhP2.96 billion, bolstered by trading and securities gains rising 226% to PhP1.19 billion, 13% growth in service charges, fees & commissions, and 123% increase in income from assets acquired. Net interest margin was at 3.22%. The growth of operating expenses was controlled at 9% to PhP10.08 billion even as the Bank continued to strengthen its operations with new investments and more branches, ATMs, and human resource complement.
“We are pleased to note that our core business drivers continue to show robust growth,” said Ricardo R. Chua, China Bank President and CEO. ―These positive results indicate that we are on track to meet our business goals for this year, especially with the turnaround of our China Bank Savings subsidiary into a significant contributor to group profitability.”
Total assets expanded 20% year-on-year to PhP564.79 billion in tandem with the growth of the Bank’s core businesses. Net loans climbed 19% to PhP343.10 billion, driven by the solid 24% growth in consumer loans. Total deposits grew 21% to PhP472.77 billion, underpinned by the 12% increase in CASA (checking & savings accounts) to PhP244.44 billion. The CASA to total deposits ratio was registered at 51.70%, and loans to deposit ratio was at 72.57%.
Total capital funds stood at PhP63.85 billion, up 10%. The Bank‘s CET 1/ Tier 1 and total capital adequacy ratios stood at 12.40% and 13.32%, respectively.
As it celebrated its 96th year, China Bank saw some milestones during the third quarter. International ratings agency Fitch upgraded its Long-Term Issuer Default Rating to BB+ from BB. The Bank is set to issue PhP20 billion long-term negotiable certificates of time deposits (LTNCDs) to support its strategic initiatives and business growth. It also recently upgraded its online personal banking portal and equipped its ATM cards the more secure Europay MasterCard Visa (EMV) technology. China Bank was awarded by UK-based magazine Finance Monthly as “Banking & Finance Firm of the Year—Philippines”. Earlier, China Bank was also
named—Best Investor Relations Company‖ for the second straight year by regional journal Corporate Governance Asia, and received twin honors at The Triple A Awards presented by The Asset, where the bank won “Best Power Deal—Philippines” and “Most Innovative Deal—Philippines”.