Sy family-led China Banking Corp. grew its net profit last year by 15 percent to P7.4 billion on the back of sustained growth in core lending and fee-based businesses.
This translated to a return on equity of 9.9 percent, the bank disclosed to the Philippine Stock Exchange on Friday.
China Bank president William Whang said: “2017 was a pivotal year in the transformation and development of the China Bank group. We grew as projected and I am pleased that our strong fundamentals and solid organic growth gave us the platform to meet the opportunities and challenges in 2018.”
The bank’s net interest income rose by 17 percent year-on-year to P20 billion, driven by the 17-percent growth in loan portfolio and stable net interest margin of 3.09 percent.
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Its loan book grew by P65 billion to P454 billion due to strong demand across all segments, particularly consumer loans, which jumped by 25 percent, and corporate loans, which rose by 19 percent.
Despite the loan expansion, the bank maintained its asset quality with tighter loan monitoring and remedial efforts. Nonperforming loans (NPL) dropped by 12 percent, leading to an improved NPL ratio to total loans of 1.4 percent.
