Money

China Bank posts surprise 24% profit jump in first half

Sy family-led China Banking Corp. sustained its upward trajectory in the first semester, chalking up a 24 growth in net income to P5.2 billion even as it jacked up its provisions for bad loans by more than 14-fold.

The bank has beefed up its loan loss buffer to P4.8 billion in anticipation of a potential surge in nonperforming loans as the coronavirus crisis rattles businesses and imperils their ability to pay their debt.

China Bank attributed its strong performance to higher volume of earning assets and lower funding costs as well as robust trading and securities gains which soared by 212 to P2.8 billion.

Total operating income surged 40% to P21 billion. Net interest income expanded by 39% to P16.2 billion while non-interest income grew 41% to P4.7 billion.

“Our first half results reflect China Bank’s continued strength and resilience, and demonstrate the soundness of our strategies to thrive in the new normal,” said China Bank president William C. Whang.

China Bank CFO Patrick D. Cheng said while the long-term impact of the global pandemic on the Philippine economy and banking industry remains uncertain, the bank is confident that its strong financial position will allow it to weather the crisis.

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