CHINA BANKING Corp. (China Bank) posted earnings of P15.1 billion in 2021 as its fee and net interest income increased.
The bank’s 2021 income was higher than the P12.1 billion it booked in 2020, it said in a filing with the local bourse.
In 2021, China Bank’s return on equity stood at 13.6%, while return on assets was at 1.5%.
“As we increasingly automate and digitize to navigate the continuing challenges of this pandemic, we are focusing on actions and investments that will redound to superior banking experiences and improved financial outcomes,” China Bank President William C. Whang said in a statement.
The bank’s net interest income increased by 13% to P38.3 billion in 2021 from P33.8 billion, supported by lower interest expense. Net interest margin rose to 4.2% from 3.9% in 2020.
Meanwhile, earnings from fees and commissions rose by 3% to P10.4 billion amid higher foreign exchange gains, trust revenues, investment banking commissions, sale of acquired assets, bancassurance fees, and other transaction-based charges.
The bank set aside impairment provisions of P8.9 billion in 2021, unchanged from the 2020 level.
Operating expenses increased by 4% to P22.3 billion. Cost-to-income ratio improved to 46% from 49%.
“We deployed more loans to businesses to aid their recovery while continuing to support the credit needs of consumers,” China Bank Chief Finance Officer Patrick D. Cheng said.
The bank’s nonperforming loan (NPL) ratio increased to 2.5% from 2.3% a year earlier, while NPL cover declined to 116% from 128%.
Meanwhile, deposits rose by 3% to P863 million, fueled by the 18% expansion in low-cost current account and savings accounts.
As of end-2021, China Bank’s total assets rose by 7% to P1.112 trillion from P1.036 trillion a year earlier.
The bank’s capital adequacy ratio was at 15.7% while its common equity Tier 1 ratio stood at 14.9% as of end-2021. Both are above the minimum levels required by the regulator.
China Bank’s shares closed at P25.80 apiece on Thursday, down 35 centavos or by 1.34% from its previous finish. — L.W.T. Noble