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The publicly traded China Banking Corp. is seeking to generate at least $ 2 billion in fresh funds from its new medium-term euro note program.
In a disclosure Thursday, the lender led by Sy said its board of directors approved the program “to allow the bank to take advantage of demand in the international markets for Philippine issuances.”
“The proceeds from this program will be used to support the bank’s general financing requirements,” he added without elaborating.
China Bank previously reported that its total assets increased 8 percent to P982 billion in the first half of the year thanks to loan growth, while its loan portfolio improved 11 percent to P593 billion thanks to continued credit in all market segments.
Asset quality remained healthy, with a non-performing loan ratio (NPL) and coverage of 1.6% and 146%, respectively.
Total deposits grew 3 percent to 773 billion pesos, with a checking / savings account at 53 percent. Total capital came to P98 billion, an increase of 8 percent year-on-year.
Net income from January to June increased 24 percent to P5.2 billion, even as it increased provisions more than 14 times to P4.8 billion in anticipation of the impact of the 2019 coronavirus disease pandemic and measures. ongoing quarantine on asset quality.
Total operating profit soared 40 percent year on year to P21.0 billion. Net interest income increased 39 percent to P16.2 billion due to higher volume of earning assets and lower financing costs as market interest rates decreased.
The net interest margin expanded to 3.8 percent from 3.2 percent.
Non-interest income increased 41 percent to P4.7 billion, primarily due to strong trading and equity gains, which soared 212 percent to P2.8 billion.
Shares of China Bank rose 25 cents or 1.21 percent to close at P20.85 each on Thursday.
