Chinabank profit at a robust P6.5 billion in Q1

Chinabank sustained its momentum from strong core business growth, posting P6.5 billion in net income in the first quarter of 2025, up 10% from the same period last year.

The robust performance translated to a return on equity of 15.1% and a return on assets of 1.6%, still among the highest in the industry.

“Our first quarter results reflect the fruits of the concerted efforts across all our different businesses to drive organic growth and support our customers,” Chinabank President & Chief Executive Officer Romeo D. Uyan Jr. said. 

Net interest income jumped by 14% to P17.1 billion, driven by higher asset yields and loan volume which offset increased interest expenses. Net interest margin remained at a healthy 4.5%. Total revenues reached P16.3 billion, up 8% year-on-year.

Operating expenses went up by 17% to P8.4 billion driven by continued investments to boost its digital, infrastructure, and talent capabilities. 

Total assets increased by 10% to P1.7 trillion, cementing Chinabank’s position as the 4th largest private universal bank in the Philippines. 

Gross loans hit P954 billion, up 19% on brisk lending to businesses and consumers.  The bank maintained its strong asset quality, recording a better-than-industry non-performing loan (NPL) ratio of 1.5%.  Consequently, the bank reduced its credit provision by 6% to P285 million.  NPL coverage remained adequate at 112% from the previous quarter's 108%, in line with the updated BSP guidelines that exclude provisions appropriated to Retained Earnings. Under the previous reporting guidelines, NPL coverage would have been higher at 143% from the previous quarter's 139%.

On the funding side, the bank generated 8% more deposits to P1.3 trillion, underpinned by the sustained increase in checking and savings accounts (CASA) and time deposits.    

Chinabank Chief Finance Officer Patrick D. Cheng highlighted the bank’s ongoing digital transformation as a key growth driver.

"We expect to provide better service, expand our customer base, and deepen client relationships with the launch earlier this year of our enhanced mobile app, My CBC, and other digital initiatives in the pipeline,” he said. 

Total equity stood at P175 billion, up 13%, with book value per share rising by 13% to P65.01.

A testament to its financial strength and commitment to maximizing shareholder value, Chinabank declared 14% higher cash dividends this year, totaling P6.7 billion, equivalent to a payout ratio of 27%. 

CBC shareholders on record as of May 9, 2025 will receive P1.50 per common share regular dividend and an additional P1.00 per common share special dividend on May 22, 2025.