Today, Chinabank (PSE:CHIB), the fourth largest private domestic bank in China, reported a 10% increase in its net income to P16.2 billion ($320 million) for the period from January to September 2023. The bank's return on equity and assets were 15.6% and 1.6% respectively.
The bank's third-quarter profits alone surged by 16% to P5.4 billion ($106 million). CEO Romeo D. Uyan Jr. attributed this growth to successful business strategies and effective cost management despite the high-interest rate environment.
Net interest income rose by 16% to P39.2 billion ($770 million), driven by a 44% surge in top-line revenues and increased interest expenses. The bank managed to offset these rising costs by reducing its total credit provisions to P1.3 billion ($25 million) due to stable portfolio quality and lower loan loss provisions, maintaining a better-than-industry non-performing loan (NPL) cover of 126%.
Operating expenses increased by 14% to P20.5 billion ($403 million) due to inflation and manpower costs, resulting in a cost-to-income ratio of 50%. Despite these challenges, Chinabank was able to grow its total assets by 11% year-on-year to P1.4 trillion ($27.5 billion).
Gross loans grew by 10% to P765 billion ($15 billion), driven by a 19% expansion in consumer loans, including teachers’ loans and credit cards. Total deposits rose by 14% to P1.1 trillion ($21.6 billion), with a current account savings account (CASA) ratio of 49%, facilitated by term deposit growth.
The bank's book value per share was at P52.50, up 7%. The Common Equity Tier 1 Ratio stood at 14.9% and Total Capital Adequacy Ratio at 15.8%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.