Chinabank posts record P14.5B net income in first half

MANILA, Philippines — China Banking Corp. (Chinabank) posted a record P14.5 billion in first-half net income, up 11 percent from a year ago, as strong lending growth and a larger balance sheet helped offset higher operating expenses. On Thursday, the Sy family-led bank said the January-to-June performance translated to a return on equity of 15.1 percent and a return on assets of 1.6 percent, both of which remained among the highest in the banking industry. READ: Chinabank declares P7.5B cash dividends on strong 2025 earnings “Bottom-line expansion was driven by the surge in core lending, strong balance sheet growth and the optimization of risk cushions given the health of the bank’s loan book,” Chinabank said. Net interest income climbed 14 percent to P39.7 billion while net interest margin widened to 4.67 percent. Operating expenses rose 11 percent to P18.4 billion as the bank continued to invest in business expansion initiatives. Even so, its cost-to-income ratio settled at 50 percent. The bank also maintained solid asset quality. Its non-performing loan (NPL) ratio stayed at 1.5 percent, while it booked P1.2 billion in impairment and credit loss provisions. This resulted in an NPL coverage ratio of 106 percent, exceeding the industry average, the bank said. Balance sheet growth remained robust during the period. Total assets expanded 13 percent year on year to P1.9 trillion, keeping Chinabank the country’s fourth-largest private universal bank. Gross loans rose 17 percent to P1.1 trillion, supported by broad-based demand from both corporate and consumer borrowers. Deposits increased 14 percent to P1.5 trillion, driven by a 21-percent jump in low-cost peso checking and savings accounts (CASA). READ: Chinabank racks up record income, industry-leading returns Total CASA deposits reached P750 billion, translating to a CASA ratio of 49 percent and helping lower the bank’s overall cost of funds. Meanwhile, total equity climbed 11 percent to P192 billion, lifting book value per share by the same pace to P71.46. Chinabank also maintained a capital adequacy ratio of 15.6 percent and a common equity tier 1 ratio of 14.7 percent, providing a strong capital buffer for future growth.