Chinabank sustains upward momentum in Q1 2026 with P6.8 billion net income

Chinabank reported a robust start to 2026, posting a net income of P6.8 billion for the first quarter, representing a 4% increase year-on-year. The bank’s performance was anchored by the steady expansion of its core lending and deposit businesses, delivering a return on equity (ROE) of 14.2% and a return on assets (ROA) of 1.5%.

The bank’s primary growth driver was net interest income, which surged 14% to P19.5 billion. This improvement was bolstered by higher topline revenues and optimized interest expenses, resulting in a net interest margin (NIM) of 4.61%—a 12-basis point improvement from the previous year.

Operating expenses rose by a controlled 5% to P8.8 billion, as the bank continues to invest in digital transformation and human capital. Despite these investments, Chinabank maintained a highly efficient cost-to-income ratio of 49%.

Chinabank remains the Philippines’ fourth-largest private universal bank, with total assets expanding by 12% to P1.9 trillion. Key highlights of the balance sheet include:

• Gross Loans: Reached P1.1 trillion, up 16% YoY, driven by strong demand in both corporate and consumer sectors.

• Total Deposits: Increased 13% to P1.5 trillion. Notably, checking and savings accounts (CASA) grew by 20%, pushing the CASA ratio up to 48%.

• Asset Quality: The non-performing loans (NPL) ratio remained steady at 1.6%.

• Prudent Reserves: The bank increased loan loss provisions to P684 million, maintaining a healthy NPL coverage ratio of 110%.

Reflecting its financial resilience, total equity grew 10% to P192.3 billion, with book value per share rising to P71.42.

During the annual stockholders’ meeting held on April 15, 2026, stockholders approved a total cash dividend payout of P7.5 billion. This distribution includes:

• Regular Dividend: P1.80 per share

• Special Dividend: P1.00 per share

The total payout of P2.80 per share is 12% higher than the previous year’s distribution, underscoring the bank’s commitment to delivering consistent value to its shareholders.