China Bank profit rises 15% to P6.4B

China Banking Corp. booked a double-digit growth of 15 percent last year amid the sustained growth in core businesses across all market segments.

China Bank president and CEO Ricardo Chua said the bank’s net income amounted to P6.45 billion last year translating to a return on equity of 10.4 percent and return on assets of 1.16 percent.

“Our 2016 results reflect the teamwork and dedication of everyone in the China Bank group to achieve significant growth in the major market segments – corporate, middle market and entrepreneurs – where we are traditionally strong and establishing a stronger presence in the consumer segment, and more recently in the capital markets,” Chua said.

Net interest income grew 11 percent to P16.69 billion, driven by the 12.5 percent rise in interest revenue from loans to P17.89 billion.

Fee- based revenues improved 14 percent to P5.09 billion, bolstered by trading gains of P918.09 million, and robust growth in revenues from service charges and fees, trust fees and gains on sale of acquired assets.

Operating expense growth was limited to 7.9 percent even with the continued expansion in its branch and distribution network and continued investments in people and technology to support the growth of new businesses.

Total assets grew 20 percent to P633.2 billion, as loans and deposits grew faster than industry.