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Annual Report


View or download the current and past annual reports of China Bank.  Each report contains detailed information about China Bank’s performance, operations, and activities and the complete financial statements and opinions of the independent auditors, including the required disclosures.

Performance Highlights

China Bank concluded a challenging year with P12.1 billion net income, 20% higher compared to 2019. The bigger profits translated to an improved return on equity of 12.09% from 11.04%, and a better return on assets of 1.21% from 1.10%. The strong growth in core businesses and better investment and trading returns offset the Bank’s pandemic-related loan buffer of P8.9 billion, which was 3.5 times higher than in 2019. Net interest income surged by 30% to P33.8 billion on the back of the 39% drop in interest expense, resulting in higher net interest margin of 3.92%. Non-interest income grew by 19% to P10.0 billion, lifted by trading and securities gains which expanded more than double in 2020 to P5.4 billion. Sustained efforts in cost management kept the growth of operating expenses controlled at 6% to P21.5 billion. Cost-to-income ratio improved to 49% from 59% as income growth continued to outpace expense growth.

Total assets stood at P1.04 trillion, up 8%. Gross loans ended flat at P572.3 billion as business customers reduced loan drawdown. Consumer loans grew 7% to P114.0 billion, accounting for 20% of the total loan portfolio. Gross non-performing loans (NPL) ratio rose to 2.3%  but NPL cover remained sufficient at 128%. Deposits increased by 8% to P835.2 billion, underpinned by 14% growth in checking and savings accounts (CASA).  The Bank’s successful fund raising via the issuance of P15 billion fixed-rate bonds in October 2020 also helped improve funding flexibility. This was followed by another oversubscribed bond offering worth P20 billion, issued and listed last February 18, 2021.  Total capital reached P105 billion, 9% higher than last year’s P96 billion  with a Common Equity Tier 1 (CET1) ratio of 13.8% and total Capital Adequacy Ratio (CAR) of 14.7%, both above the minimum regulatory requirement.

2019 2020
For the Year (In Million Pesos)
Net Interest Income 26,051 33,843
Non-Interest Income 8,431 10,011
Operating Income 34,482 43,854
Provision for Impairment & Credit Loses 2,570 8,869
Operating Expenses 20,324 21,522
Net Income Attributable to Equity Holders of the Parent Bank 10,069 12,063
At Year End (In Million Pesos)
Total Resources 962,226 1,036,012
Loan Portfolio (Net) 568,919 557,214
Investment Securities 212,836 235,892
Total Deposits 775,428 835,231
Stockholders' Equity 96,176 104,985
Distribution Network and Manpower
Number of Branches 631 634
Number of ATMs 1,002 1,022
Number of Employees 9,813 9,825
Key Performance Indicators (in %) Profitability
Return on Average Equity 11.04 12.09
Return on Average Assets 1.10 1.21
Net Interest Margin 3.39 3.92
Cost to Income Ratio 59 49
Liquidity
Liquid Assets to Total Assets 37 43
Loans (net) to Deposit Ratio 73 67
Asset Quality
Gross Non-Performing Loans (NPL) Ratio 1.5 2.3
NPL Cover 129 128
Capitalization
Common Equity Tier 1 Ratio (CET 1/Tier 1) 12.76 13.82
Capital Adequacy Ratio (Total CAR) 13.67 14.73
Shareholder Information Market Value
Market Price Per Share (In Pesos) 25.05 24.95
Market Capitalization (In Million Pesos) 67,282 67,013
Valuation
Earnings Per Share (In Pesos) 3.75 4.49
Book Value Per Share (In Pesos) 35.80 39.08
Price to Book Ratio (x) 0.70 0.64
Price to Earnings Ratio 6.68 5.56
Dividends
Cash Dividends Paid (In Million Pesos) 2,364 2,686
Cash Dividends Per Share (In Pesos) 0.88 1.00
Cash Payout Ratio (In %) 29 27
Cash Dividend Yield (In %) 3.39 4.53

 
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