China Bank profit soars to P19.1 B

The earnings of China Banking Corp. grew by 27 percent to an all-time high of P19.1 billion last year from P15.1 billion in 2021 on the back of robust operating income and effective cost management.

The 14-percent growth in total revenues to a record P55.7 billion from P48.7 billion fueled the better-thanexpected financial results in 2022.

“Our sustained strong performance amid macroeconomic headwinds is a testament to our unwavering customer focus, effective management of assets, and good cost control,” China Bank president William Whang said.

This translated to a higher return on equity of 15.1 percent from 13.6 percent and return on assets of 1.6 percent from 1.5 percent.

The Sy-led bank reported a 17-percent rise in net interest income to P45.6 billion from P39.1 billion on the back of the 23 percent increase in interest earnings to P57.2 billion from P46.5 billion due to continuous build-up in earning assets.

On the other hand, interest expense jumped by 57 percent to P11.6 billion from P7.4 billion.

The listed bank also reported a five percent increase in fee-based income to P10.1 billion last year from P9.6 billion in 2021 due to notable improvements in core fee income, including deposit related transaction fees, trust revenues, bancassurance revenues, and fees from investment banking, stock brokerage, and insurance brokerage businesses.

China Bank’s operating expenses increased by nine percent to P24.4 billion from bigger revenue-related taxes due to business growth and higher core operating expenses due to inflationary pressures.

There was also a two percent uptick in provision for impairment and credit losses to P9 billion in 2022 from P8.9 billion in 2021. The bank’s loan book grew by 15 percent to P700 billion on vigorous business and consumer lending to drive economic rebound.