China Banking Corporation
...earnings report

China Bank profit rises 17% to P5.7 B

Sy-led China Banking Corp. registered a 17 percent increase in earnings in the first nine months amid the strong growth in its core and fee-based businesses.

“China Bank continues to deliver positive results on the back of strong growth in our core banking businesses,” China Bank president William Whang said.

Net income jumped 17.3 percent to P5.68 billion in the first nine months from P4.84 billion in the same period last year.

Net interest revenue grew 16 percent to P14.26 billion, while non-interest income went up 17 percent to P4.90 billion despite the P611.43 million decline in trading gains.

Core operating income, excluding trading gains and non-recurring income, grew 19 percent compared to last year, reflecting continued robust growth in recurring income from service charges, fees from investment banking and trust as well as income from asset sales.

“The better-than-expected results reflect the fruits of our significant strategic initiatives since we began our expansion phase 10 years ago with the Manila Bank acquisition,” Whang said.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
The consolidated net income for the third quarter of P2.09 billion was 32 percent higher than the previous year’s level.

This translates to a consolidated return on equity of 10.41 percent and a consolidated return on assets of 1.16 percent with the parent bank posting a ROE of 11.41 percent and ROA of 1.32 percent.

Total deposits grew 22 percent to P578.04 billion, reflecting the strength of the China Bank franchise boosted by deposit growth from new branches.

“Our distribution network has grown almost four times from only 148 branches in 2007 to 569 branches as of September 2017, of which 158 are from China Bank Savings,” Whang said


May dividend payment ata eto, macheck nga kung pumasok na sa akin

China Bank reports P1.5-B net profit in Q1

China Banking Corporation (China Bank) managed 2 percent growth in first quarter consolidated net income to P1.50 billion this year due to the sustained growth of its core businesses.

In a disclosure to the Philippine Stock Exchange,, the bank said its operating income increased 9 percent to P6.14 billion.

Net interest income rose 18 percent to P5.29 billion, driven by the 20 percent growth in gross loan portfolio.

Non-interest income (excluding trading gains) grew 6 percent to P1.14 billion from the increase in service charges, fees from investment banking, and income from foreign exchange gains.

Core recurring income (operating income excluding trading gains) was up 16 percent year-on-year to P6.44 billion from P5.55 billion.

As China Bank carried out its expansion program by investing in new branches, more people, and up-to-date technology to support the growth of new businesses, operating expenses increased 13 percent to P4.24 billion.

Total assets expanded 16 percent to P722.63 billion, which is P102.23 billion more than first quarter 2017 levels, driven mainly by the 20 percent growth in gross loan portfolio to P455.13 billion.

Growth was registered across all market segments: consumer, commercial, and corporate.

Non-performing loans dropped P1.31 billion, leading to an improved NPL ratio of 1.32 percent. The Bank’s loan loss coverage ratio reached an important milestone, jumping to 149 percent from 94 percent — better than the industry average of 121 percent.

The same ratio at the parent bank level was even stronger at 282 percent from 159 percent.

The growth was funded by sustained increase in deposits. Total deposits rose 16 percent to P613.64 billion, underpinned by a 24 percent growth in CASA (checking & savings accounts) deposits to P338.73 billion, reflecting the strength of the China Bank franchise.

CASA ratio also improved to 55 percent, while loans-to-deposit ratio stood at 73 percent.

“We are working hard to meet our goals for the year, focusing on sustainable earnings through our core businesses of loans and deposits and strengthening our fee-based revenue streams,” said China Bank President William C. Whang.

The bank declared P2.23 billion cash dividends (P0.83 per share), 12 percent higher than the previous year.

The cash dividends represent 30% of the full year 2017 net income of P7.52 billion, with a cash dividend yield of 2.38 percent based on China Bank’s closing price of P34.90 as of May 2, 2018.

Payment will be on June 1, 2018 to China Bank stockholders as of May 17, 2018.

“Our good results last year sustained our ability to provide satisfactory returns to our shareholders who have shown their full support during our stock rights offering in 2014 and 2017,” said Whang.



...nag flat earnings Sad

China Bank profit flat at P3.6 B in H1

Lawrence Agcaoili (The Philippine Star) - August 3, 2018 - 12:00am
MANILA, Philippines — Earnings of Sy-led China Banking Corp. was flat at P3.6 billion in the first half despite the sharp drop in fee-based revenues as the listed bank reduced its reliance on securities trading.

China Bank said in a disclosure to the Philippine Stock Exchange (PSE) its core income rose 15 percent to P13.3 billion from January to June, driven by the sustained growth in core businesses.

The bank’s operating income climbed by seven percent to P13.1 billion in the first semester.

China Bank’s net interest revenues grew 20 percent to P11.1 billion on the back of robust growth in loans and securities. Improving loan yields offset the rise in funding cost, leading to an improvement in net interest margin to 3.16 percent from 3.07 percent.

However, fee-based revenues plunged by 32 percent to P2.1 billion as the bank reduced its reliance on securities trading.

Strong demand across all customer segments translated to an 18 percent increase in the listed bank’s loan book. Consumer lending led the pack growing 21 percent in the first half of the year.

Its deposit base expanded by 18 percent to P653.4 billion, underpinned by a 32 percent increase in low cost funds to P374.6 billion. The resulting loans to deposit ratio was a healthy 72 percent.

China Bank is the country’s seventh largest bank in terms of assets as total resources grew 17 percent to P768.4 billion in end-June.

Total capital funds inched up four percent to P83.6 billion, while its common equity tier 1 (CET 1) and total capital adequacy ratios stood at 12.6 percent and 13.3 percent, respectively, well above the minimum regulatory requirement.

The bank is raising as much as P50 billion through a peso-funding program covering a combination of long term negotiable certificates of deposits (LTNCDs), retail bonds, and commercial papers.



China Bank issues first green bond, raises $150-M for climate-smart projects

China Banking Corp. has raised $150 million in its first green bond issued, with World Bank Group-member International Finance Corp. as its sole investor.

In a disclosure to the Stock Market on Friday, China Bank said it will be using the $150 million to fund “climate-smart projects, increasing the company’s climate portfolio to more than $200 million,” or roughly P11 billion. These include investments in renewable energy, green buildings and water conservation projects.

“IFC is proud to play a role in creating a new green bond market in the Philippines, a country challenged by climate change impacts but where green financing is low,” said IFC CEO Philippe Le Houérou. “Our investment in this bond will increase access to new financing for climate-smart projects.”

In December last year, the IFC subscribed to BDO’s green bond issuance, kicking off its green bond investments in the East Asia and Pacific region. In August of this year, the IFC issued its Mabuhay Bond, its first peso-denominated, internationally-rated green bond.

China Bank President William C. Whang in the same statement said that the green bond affirms the company’s “long-term commitment to sustainability.” In 2017, China Bank participated in the mobilization of PHP796 billion in loans, bonds, and securities for projects contributing to the U.N. Sustainable Development Goals.

The company claims the new green bond and its sustainability strategy places them among the country’s market leaders for climate-smart financing, aligning with the government’s plan to reduce carbon emissions by 70% by 2030.



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