A quiet strength permeates China Banking Corporation, revealed in a remarkable surge of financial performance. The first nine months of 2025 witnessed a 10% leap in consolidated net income, reaching P20.2 billion – a testament to the resilience and strategic focus of its core operations.
This impressive growth translates to a robust return on equity of 15.3% and a solid return on assets of 1.6%, figures that underscore the bank’s efficiency and effective capital management.
The engine driving this success is a surge in net interest income, climbing 15% year-on-year to P53.5 billion. This substantial increase was fueled by a 13% rise in interest income, a direct result of expanding earning assets, skillfully balancing the 9% increase in interest expenses.
The result? A healthy net interest margin of 4.6%, demonstrating the bank’s ability to navigate the complexities of the financial landscape and generate strong returns.
Beyond interest income, fee income also contributed significantly, reaching P3.1 billion. This growth stemmed from a steady expansion in trust and bancassurance commissions, highlighting the diversification of revenue streams.
Investment in the future is evident in the 15% year-on-year increase in operating expenses, reaching P25.2 billion. These investments are strategically channeled into bolstering manpower and embracing cutting-edge technology, positioning the bank for continued growth.
Despite this investment, the bank maintains a disciplined cost-to-income ratio of 45%, showcasing a commitment to operational efficiency.
Lending activity flourished, with gross loans expanding by 14% year-on-year to P994 billion by the end of September. This growth reflects a strong and consistent demand for credit from both corporate and consumer sectors.
Crucially, this expansion hasn't compromised prudence; the nonperforming loan (NPL) ratio improved to a commendable 1.6%, a clear indication of the bank’s rigorous risk management practices.
Loan loss provisions totaled P7 billion for the first nine months, resulting in a robust NPL cover of 123%, further reinforcing the bank’s financial stability and preparedness.
On the funding side, total deposits experienced a healthy 9% year-on-year increase, reaching P1.4 trillion by the end of September. The growth was particularly strong in checking and savings accounts, which surged by 12%.
Overall, China Banking Corporation’s total assets grew by 8% year-on-year to P1.7 trillion as of September, a significant milestone reflecting its expanding footprint and influence.
A solid foundation of capital underpins this growth, with total capital reaching P184.4 billion, a 13% increase from the previous year. This robust capital base supports a capital adequacy ratio of 15.8% and a common equity Tier 1 ratio of 15%, both comfortably exceeding regulatory requirements.
Serving a broad customer base, the bank operates a vast network of 647 branches and 1,126 automated teller machines, ensuring accessibility and convenience across the nation.
