Saturday, 7 November 2009

China Bank nine-month profit rises 40.7%

Alria M. Ventanilla
BusinessWorld
http://beta.bworldonline.com/main/content.php?id=1058

CHINA BANKING Corp. reported a 40.7% year-on-year increase in net income to P3.21 billion in the nine months to September from P2.28 billion a year ago, on improved lending margins and trading gains.

In a statement Friday, Chinabank, one of the two banks controlled by business tycoon Henry Sy, said growth was boosted by the 29.5% expansion in net interest revenues and the 68.4% rise in non-interest revenues during the period.

Net interest revenues grew mainly on account of stronger lending and improved margins arising from continued growth in low-cost deposits. Non-interest revenues, meanwhile, were lifted by higher trading and foreign exchange gains as well as revenues from the disposal of acquired assets.

"With our continued focus on improving service, strengthening our balance sheet, and effective management of risks, we were able to sustain our growth momentum for this year," China Bank executive vice-president and chief operating officer Ricardo R. Chua said in a statement.

China Bank said its total assets inched up by 2.8% to P214.39 billion by end-September from its December level.

Total deposits grew by 42% to P174.04 billion.

Higher appetite for lending products by the corporate and consumer sectors allowed its average loans to rise by an annual 12%.

China Bank’s financial strength, as measured by capital adequacy ratio (CAR), remained sturdy at 13.38%.

On Friday, China Bank shares closed at their intra-day high of P362.50 apiece.

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