Sy family-led China Banking Corp. delivered solid results despite the pandemic, posting a 20 percent growth in net profit last year to P12.1 billion on robust lending activities.
China Bank’s assets also breached the P1 trillion mark even as it set aside huge allowances for loan losses amid the economic downturn. As of the end of December 2020, the bank had total assets of P1.04 trillion, up eight percent.
The strong growth in core businesses as well as higher investment and trading returns offset the bank’s pandemic-related loan buffer of P8.9 billion, which was 3.5 times higher than in 2019.
Net interest income jumped by 30 percent to P33.8 billion on the back of the 39 percent drop in interest expense, resulting in higher net interest margin of 3.92 percent.
Non-interest income rose by 19 percent to P10 billion, lifted by trading and securities gains which more than doubled to P5.4 billion.
Sustained efforts in cost management kept the growth of operating expenses controlled at six percent to P21.5 billion.
“Our relentless efforts to build and maintain robust liquidity and capital levels have positioned the bank well to weather the ongoing storm, and at the same time, to help our customers and the country recover,” said China Bank president William C. Whang.
Deposits increased by 8% to P835 billion, underpinned by 14% growth in checking and savings accounts (CASA).
The bank’s successful fund raising via the issuance of P15 billion fixed-rate bonds last October also helped improve funding flexibility.