[ad_1]
CHINA BANKING Corp. (China Bank) posted higher net earnings in the third quarter as its core businesses continued to grow despite the coronavirus pandemic.
China Bank’s net income reached P3 billion in the third quarter, up 21% compared to the P2.5 billion recorded in the same period last year, the lender said in a disclosure to the local stock exchange on Thursday.
This brought your network probet for him befirst nine months to P8.2 billion, 23% more than the P6.7 billion registered in the same period in 2019.
This translated into a return on equity of 11.15%, compared to 9.92% the previous year.
The bank’s assets stood at P1 trillion at the end of September, P60 billion more than the previous year’s level and also beyond China Bank’s year-end target, he said. This resulted in a return on assets of 1.11%.
“The year 2020 has been very challenging, but with the hard work and commitment of our employees, we can move forward and provide the necessary banking services and support to our customers,” said China Bank Chairman William C. Whang. .
“We still expect continued challenges from a difficult environment, and the results give us the buffer to absorb more stress in the future. ”Mr. Whang said.
China Bank’s net interest income increased 35% to P25 billion in the first nine months from P18.7 billion a year ago, which it attributed to a 36% decrease in its interest expense. This resulted in a net interest margin of 3.89%.
The bank said its commission-based income also increased 35% to P7 billion due to a nearly fourfold increase in business profits as income from its trust business grew 15%.
China Bank’s loan portfolio increased 6% to P595 billion in September, while deposits with the bank also rose 6% to P827 billion. This resulted in a loan-to-deposit ratio of 72% for the period.
Although its loan portfolio continued to grow, asset quality remained healthy, with the bank’s NPL ratio at 2.5% as of September. Meanwhile, bad debt coverage stood at 104%.
The lender’s loan loss reserves amounted to P6.3 billion, 12 times higher than the prior year level. China Bank said it increased its provisions for potential credit losses amid the anticipated impact of the coronavirus pandemic and lockdown measures on asset quality, adding that it “continues to work with borrowers experiencing bedi nancialfficult in the present circumstances. “
Meanwhile, China Bank’s operating income, excluding business profits, rose 24% to P28 billion in the first nine months, while operating costs increased 6% to P16 billion. This caused its cost-to-income ratio to improve to 51% from 65% last year.
The bank said its capital grew 9% to P101 billion, with its Common Equity Tier 1 ratio at 13.08% and its total capital adequacy ratio at 13.99%, both above regulatory requirements.
“In the midst of the pandemic, China Bank’s capital and liquidity position remains strong. We continue to productively deploy resources to drive strategic growth, befinance the needs of our clients and contribute to the economic recovery of the country ”, said China Bank Chief Financefficer Patrick D. Cheng was quoted as saying.
China Bank shares closed at P21.60 apiece on Thursday, befive cents or 0.23% of your previous beend up. – KKT Jose
[ad_2]
