China Bank 9-month net income up 31% at P4.84B

China Banking Corp. posted a net income of P4.84 billion in the first nine months of 2016, up 31 percent from a year earlier.

In a disclosure to the Philippine Stock Exchange on Thursday, the Sy-led lender attributed its January-to-September results to strong growth in core and fee-based based businesses.

"We are pleased to note that our core business drivers continue to show robust growth," said Ricardo R. Chua, China Bank president and CEO.

Operating income stood at P16.46 billion, up 16 percent.

Net interest income reached P12.26 billion, up 9 percent on the back of a 19-percent growth in loan portfolio.

Fee-based revenue grew by 42 percent at P4.21 billion from P2.96 billion due to a 226-percent increase in trading and securities at P1.19 billion, a 13-percent growth in service charges, fees and commissions, and a 123-percent increase in income from acquired assets.

Loan amounted to P343.10 billion, up 19 percent, driven by a 24-percent growth in consumer loans.

Total deposits reached P472.77 billion, up 21 percent due to a -percent increase in current account, savings account (CASA) at P244.44 billion.

China bank said its CASA-to-deposits and loans-to-deposits ratios stood at 51.70 percent and 72.57 percent, respectively.

Operating expenses rose by 9 percent at P10.08 billion, while total assets expanded by 20 percent at P564.79 billion.

Total capital funds stood at P63.85 billion, up 10 percent. The bank‘s common equity tier 1 ratio stood at 12.40 percent, and its total capital adequacy ratio at 13.32 percent.

"These positive results indicate that we are on track to meet our business goals for this year, especially with the turnaround of our ChinaBank Saving subsidiary into a significant contributor to group profitability," Chua said. — Ted Cordero/VDS, GMA News