Chinabank Posts 11% Profit Jump to PHP 14.5 Billion in First Half

Strong Core Banking Drives Earnings Growth

China Banking Corp. (Chinabank) recorded net income of PHP 14.5 billion in the first six months of 2026, an 11-percent increase from PHP 13 billion in the same period of 2025. The result reflected continued momentum in the Sy-led bank's core operations, with return on equity reaching 15.1 percent and return on assets standing at 1.6 percent.

Net interest income rose 14 percent to PHP 39.7 billion as the bank's net interest margin widened to 4.67 percent. The improvement came amid sustained demand for credit across both corporate and consumer segments, which pushed gross loans up 17 percent to PHP 1.1 trillion.

Operating expenses increased 11 percent to PHP 18.4 billion, reflecting ongoing investment in business expansion and revenue-generating initiatives. Despite the higher spending, Chinabank maintained a cost-to-income ratio of 50 percent.

Balance Sheet Expands to PHP 1.9 Trillion

Chinabank's total assets grew 13 percent year-on-year to PHP 1.9 trillion, reinforcing its position as the fourth-largest private universal bank in the country. The bank said the expansion was supported by strong deposit growth and robust loan origination.

Total deposits climbed 14 percent to PHP 1.5 trillion, with low-cost peso checking and savings accounts surging 21 percent. Including foreign currency deposits, total current and savings accounts reached PHP 750 billion, resulting in a CASA ratio of 49 percent. The deposit mix helped the lender manage funding costs in a prolonged elevated interest rate environment.

Gross loans outpaced deposit growth, rising 17 percent as demand remained firm in both the corporate and consumer lending segments. The faster loan expansion relative to deposits signals confidence in credit quality and appetite for yield.

Asset Quality Holds Steady

Chinabank reported a non-performing loan ratio of 1.5 percent, unchanged from the previous period. The bank set aside PHP 1.2 billion for impairment and credit losses during the half, with its NPL coverage ratio settling at 106 percent.

The stable asset quality metrics suggest the bank's underwriting standards have held up despite the pace of loan growth. Provisions remained within manageable levels, allowing net interest income to flow through to the bottom line.

Capital ratios remained comfortably above regulatory minimums. Chinabank posted a capital adequacy ratio of 15.6 percent and a common equity tier 1 ratio of 14.7 percent, providing a buffer for further balance sheet expansion.

Leadership Changes at Securities Unit

Chinabank announced management changes following recent executive committee and board meetings. Marisol Teodoro will retire as first vice president I on September 1, with her secondment to Chinabank Securities Corp. ending on August 17. She will serve as an adviser to the securities subsidiary from August 17 to 31 before her retirement.

Ronald Emmanuel Co was appointed president and director of Chinabank Securities, effective August 17. Co, 45, brings over 15 years of brokerage experience, having led operations at BDO Securities Corp. and First Metro Securities Brokerage Corp.

Chinabank operates a consolidated network of 673 branches and 1,150 automated teller machines. Its subsidiaries include China Bank Savings, Chinabank Capital, Chinabank Securities, and Chinabank Insurance Brokers.

The first-half results position Chinabank to sustain momentum into the second half, with lending activity likely to remain a key driver of revenue growth. The bank's ability to defend its net interest margin while controlling credit costs will be critical as competition for deposits intensifies across the Philippine banking sector.