China Bank hikes profit 40.7% to P2.3B until Sept.

11/09/2009

China Banking Corp. (China Bank), the country’s fourth largest universal bank by market capitalization, reported a net income of P3.21 billion for the year until September, 40.7 percent higher than the P2.28 billion income recorded for the same period last year.

This income performance translates to a 15.53 percent return on equity and a 2.02 percent return on assets, among the highest in the industry.

China Bank’s robust growth was driven by a 22.8 percent increase in revenues to P13.02 billion. Net interest revenues before loan loss provisions jumped 29.5 percent, driven by stronger lending and improved margins arising from continued growth in low-cost deposits. Non-interest revenues rose 68.4 percent, boosted by higher trading and forex gains and revenues from disposal of acquired assets.

Even as it continued to pursue the largest branch expansion program in its 89-year history coupled with investments in more automatic teller machines and new technology platforms, the bank’s cost-to-income ratio improved to 55.8 percent from 58.7 percent for the same period last year, making China Bank as one of the most cost-efficient banks in the country.

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