CHINA BANKING CORP.’s (Chinabank) net profit climbed by 13% year on year to a record P28 billion in 2025, driven by sustained growth in its loan book and its core businesses.
This translated to a return on equity of 15.6% and a return on assets of 1.6%, it said in a disclosure to the stock exchange on Thursday.
Its financial statement was unavailable as of press time.
The bank’s net interest income climbed by 12% to P105.2 billion last year amid strong loan demand across various business segments.
It said its core lending business served as a “primary engine” for its growth in 2025.
“Meanwhile, sustained deposits growth and a more favorable deposit mix helped temper the increase in interest expense,” Chinabank added.
Net interest margin stood at 4.6% at the end of 2025.
“Fee-based income also improved, partly attributed to the sustained growth in transactional fees, trust fees, and bancassurance commissions,” the bank said.
As a result, its total operating income rose by 16% to P75.7 billion.
Meanwhile, Chinabank’s operating expenses grew by 12% to P34.4 trillion amid higher manpower costs, taxes, and IT spending.
Its cost-to-income ratio stood at 45%, which it noted is still “healthy… despite higher spending on technology and initiatives aimed at driving revenue growth.”
The bank’s gross loans expanded by 13% year on year to P1.1 trillion on strong credit demand from both corporates and consumers.
“During the year, Chinabank demonstrated greater prudence while maintaining asset quality. Although the nonperforming loans (NPL) ratio kept steady at 1.6%, the bank more than doubled its safety net, setting aside P7 billion in credit provisions,” it said.
“This proactive move resulted in an NPL coverage ratio of 109%, well above the industry average.”
On the funding side, deposits grew by 9% to P1.4 trillion, 48% of which were low cost current account, savings account or CASA deposits.
Chinabank’s total assets rose by 8% to hit P1.8 trillion at end-2025.
Total capital went up by 13% to P191.3 billion.
“This strength is reflected in a common equity Tier 1 ratio of 15.2% and a total capital adequacy ratio of 16.1%, providing a significant buffer to support the bank’s long-term strategic objectives,” the bank said.
Its book value per share also improved by 13% to P71.04.
Chinabank’s shares closed unchanged at P69 each on Thursday. — Aaron Michael C. Sy
