China Bank net income rises 19% in Q1 2020

China Banking Corporation (China Bank) reported a 19 percent increase in net income, reaching ₱2.2 billion in the first quarter of 2020, driven by strong core business growth despite the enhanced community quarantine.

The bank's total operating income saw a 26 percent year-on-year increase, amounting to ₱9.1 billion, with net interest income growing by 34 percent to ₱9.1 billion due to higher revenues from earning assets and reduced interest expenses.

Despite weaker market conditions affecting trading activities, China Bank's total assets expanded by 10 percent to ₱984 billion, and gross loans grew by 15 percent to ₱592 billion.

Deposits rose by 9 percent to ₱785 billion, resulting in an improved loans-to-deposits ratio of 74 percent.

The bank maintained a stable non-performing loan (NPL) ratio of 1.7 percent, while increasing provisions by 51 percent in anticipation of potential credit losses due to the COVID-19 pandemic.

China Bank's capital ratios remained well above regulatory requirements, with total capital at ₱97 billion.

China Bank President William C. Whang expressed commitment to providing necessary support and flexibility to stakeholders affected by the COVID-19 pandemic and acknowledged the dedication of the bank's frontliners.