China Banking Corp., one of the country’s leading banks controlled by retail tycoon Henry Sy, posted a net profit of P3.64 billion, up 8 percent year-on-year on the back of stronger lending and lower cost of funding.
China Bank said In a disclosure to the stock exchange Friday the three-quarter income translated into a return on equity of 8.35 percent and a return on assets of 1.02 percent.
Net interest income rose 8 percent to P11.17 billion year-on-year as revenues from loans rose 8 percent, while interest expense dropped 6 percent as a significant block of high-cost funds (time deposits) was replaced by low-cost CASA (checking and savings accounts), which grew 16 percent. This led to an improved net interest margin of 3.36 percent from 3.23 percent a year ago.
Non-interest income declined 3 percent to P2.96 billion as trading gains fell 5 percent to P365.22 million. Earnings from service charges, fees, and commissions rose 15 percent to P1.38 billion.
