In accordance with RA No. 10173 (Data Privacy Act), I hereby consent to the collection, retention, processing, disclosure (as provided under applicable confidentiality and data privacy laws of the Philippines including all subsequent amendments or supplements there(to) of any personal, sensitive personal, and privileged information relating to me, whether provided by me or coming to the China Banking Corporation’s (hereafter referred to as “Company”) possession, and sharing of the said personal, sensitive personal and privileged information to the Company, its offices, branches, subsidiaries and affiliates, accredited third parties/vendors, credit reporting or credit reference agencies, credit protection provider, guarantee institutions, debt collection agencies, private regulatory organizations and other financial institutions, and other outsourced service providers engaged by the Company for the purposes reasonably required by the Company, for the Company’s conduct of everyday business, and/or only if required to do so by law or in good faith belief that such action is necessary to: (a) assess my suitability for employment with the Company or any of its subsidiaries; (b) submit reports to Senior Management on recruitment strategies and demographics; (c) submit reports to government agencies; (d) use as reference when conducting reference checks; (e) conduct background/credit investigation; (f) conform to the edicts of the law or comply with legal process served on the Company and its subsidiaries; (g) protect and defend the rights or property of the Company and its subsidiaries and (h) act under exigent circumstances to protect the personal safety of users of the Company and its subsidiaries or the public.
I shall notify the Company in writing, which must be acknowledged by the Company, if I do not consent to the aforementioned processing. I further acknowledge my right to information, access, correction, rectification, erasure of my personal, sensitive personal and privileged information, data portability, objection to processing and to file complaint under the Data Privacy Act. I agree that the Company may retain my personal information for as long as necessary for the fulfilment of the purpose for which it was collected and such other purposes that I may have consented from time to time, as required by pertinent laws and regulations, and provide information when required to do so in accordance with applicable laws, by court order, and jurisprudence.
If I provide the Company with any personal information relating to a third party (e.g. reference information, et.al.), I warrant to the Company that I have obtained the recorded consent of such third party to provide the Company with the third party’s personal information for the relevant purposes and can upon the Company’s consent request, submit the same for inspection.
I agree that the Company shall not be liable for any loss or damage arising from the Company’s disclosure of personal information for the above purposes.
China Banking Corporation (China Bank, PSE stock symbol CHIB) posted a consolidated net income of P11.2 billion for the January to September period, 35% higher compared to the same period last year on the back of sustained core business growth and effective cost management.
The Bank was able to ride out the economic headwinds, recording quarterly income growth since the start of the COVID-19 pandemic. In the third quarter alone, China Bank saw its net earnings grow 29% to P3.9 billion versus 3Q 2020.
The strong performance in the first nine months of 2021 translated to a higher return on equity of 13.6% and an improved return on assets of 1.5%.
Net interest income rose 13% to P28.2 billion as interest expense dropped by 48% with the growing share of customer deposits in current and savings accounts (CASA). Net interest margin improved to 4.2%.
Due to rounding, numbers presented in the tables may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Credit provisions of P6.5 billion were relatively flat versus last year.
Meanwhile, fee-based income grew 19% to P8.4 billion, underpinned by a 40% uptick in core fee-based earnings to P4.4 billion from service charges, fees and commissions, forex gains, income from acquired assets, trust, and bancassurance operations.
Operating expenses slightly increased mainly from overhead costs, but the Bank continued to improve its cost efficiency, recording a better cost-to-income ratio of 45%. “These results exceeded our expectations,” said China Bank President William C. Whang. “We will continue to support our customers, especially those who are still struggling amid the global pandemic, as we push for greater efficiencies and sustainable growth through digitalization and optimization of our branch and ATM networks.”
China Bank maintained its balance sheet strength, with P1.0 trillion in assets, up 4%. With the gradual return of business activities, gross loans expanded 3% to P612 billion. Gross non-performing loan (NPL) ratio was at 3.4%, lower compared with the Bank’s June level and the industry average for the period. The higher credit buffers resulted in an NPL cover of 106%. On the funding side, total deposits rose 3% to P849 billion, underpinned by a 23% increase in CASA.
“China Bank’s sustainable funding sources and strong capital continue to be key strengths. About 62% of the Bank’s P849 billion total deposits were accounted for by CASA, up from 52% last year, and this helped bring down our overall funding cost. Our healthy capital ratios also reflect the Bank’s financial soundness,” said China Bank Chief Finance Officer Patrick. D. Cheng.
Total capital funds stood at P114 billion, up 13%, for a common equity tier 1 (CET1) ratio of 14.4% and a total capital adequacy ratio (CAR) of 15.3%.
The 101-year-old bank was recently named as one of the strongest banks in 2021 in terms of balance sheet by The Asian Banker. The financial magazine ranked China Bank as the 2nd strongest bank in the Philippines—ahead of the two other biggest banks in the country—and in the top 20% of the 500 strongest banks in the Asia Pacific region.
The Asian Banker evaluated banks' balance sheet strength based on their 2020 results. China Bank was cited for registering the lowest gross NPL ratio among Philippine banks included in the Asian Banker 500, at 2.3% as of December 2020, and for its improved profitability, cost-to-income ratio, and return on assets, and robust capital and liquidity positions amid a difficult year.
The recognition came on the heels of validations from rating agencies of the Bank’s financial stability and credit worthiness. Moody’s Investors Service affirmed the Bank’s investment grade credit rating of Baa2 in September, and Philippine Rating Services Corporation (PhilRatings) gave the Bank the highest credit rating of PRS Aaa (corp.) in October. Both credit ratings carry a stable outlook.
China Bank’s financial strength is supported by its governance excellence. Earlier this year, The ASEAN Capital Markets Forum distinguished it as among the top 3 publicly-listed companies in the Philippines and among the top 20 in ASEAN, and as an ASEAN Asset Class. The Institute of Corporate Directors awarded the Bank with the highest recognition, the Four Golden Arrow. Meanwhile, in acknowledgment of the Bank’s strong support for its initiatives to build an inclusive and increasingly digital Philippine economy, the Bangko Sentral ng Pilipinas named China Bank as an outstanding stakeholder.