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.
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.