China Bank Savings Posts Slight Dip in H1 Profit Amid Lending Growth

MANILA, Philippines — China Bank Savings (CBS) posted a slight decline in first-half earnings despite higher revenues from sustained lending growth. The thrift banking arm of China Banking Corp. said on Wednesday that its net income for the first six months of 2026 reached P1.19 billion, slightly lower than the P1.2-billion record profit in the same period last year. READ: China Bank Savings doubles provisions amid expansion push The bank attributed its resilient performance to the continued expansion of its core lending business, which fueled revenue growth despite ongoing global geopolitical uncertainties and a difficult operating environment. Net interest income climbed about 16 percent to P5.49 billion, driven by sustained expansion in the bank’s lending portfolio, particularly its salary loan and business loan segments. CBS also strengthened its balance sheet during the period. Total assets reached P225.58 billion, supported by a customer base of more than 1.2 million. Gross loans, excluding interbank loans, increased by about 8 percent to P158.80 billion, while deposits grew 10 percent to P199.42 billion, providing a stable funding base for further lending expansion and reinforcing the bank’s liquidity position. Asset quality remained healthy, with a non-performing loan (NPL) ratio of approximately 2.90 percent. The bank also nearly doubled its loan-loss reserves to cover NPLs, reflecting what it described as a prudent credit risk management approach and conservative provisioning policy amid uncertain market conditions. READ: China Bank Savings earnings jumped 11.5% CBS president James Christian T. Dee said the bank’s loan portfolio has remained resilient despite heightened global uncertainties. “Our disciplined approach to lending has kept our portfolio sound and strong amid prevailing global geopolitical uncertainties and their impact on Philippine economic growth, inflation and other factors,” Dee said, adding that the bank would continue expanding its lending business in a prudent manner. The thrift bank likewise continued expanding its physical footprint. As of end-June, it operated 190 branches, 33 APD lending centers and 65 branch lite units (BLUs). During the first half, CBS opened five new branches and converted 10 BLUs into full-service branches to improve customer access while continuing to invest in its digital banking capabilities. INQ