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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

The year 2017 was a significant period of change and progress for China Bank, marking a new chapter in our storied history. We achieved good business and financial results as we sustained our growth momentum, successfully completed a stock rights offer to bolster our capacity to pursue further business growth, highlighted by an investment grade credit rating.

In 2017, China Bank generated a record net income of P7.5 billion, up 16% on the back of sustained growth in core and fee-based businesses. Total assets expanded 19% to P751.4 billion. Gross loans grew 16% to P454 billion due to strong demand across all segments, particularly consumer loans, which jumped 25%, and corporate loans, which rose 19%. Stronger focus on credit underwriting standards and disciplined collection efforts led to a milestone reduction in our NPL ratio to 1.4% – lower than industry levels – as non-performing loans (NPL) dropped P900 million or 12.3%. Continued provisioning improved the loan loss coverage ratio to 99% from 91% (consolidated level) and to 175% from 153% (parent bank). Total deposits rose 17% to P635.1 billion, boosted by 24% growth in low-cost funds, resulting to healthy CASA (checking & savings accounts) ratio of 54%, while the loans-to-deposit ratio was steady at 71%.  Total capital funds grew 32% to P84 billion with the P15-billion stock rights offer completed in May 2017. The Bank‘s common equity tier 1 (CET 1) and total capital adequacy ratios stood at 13.47% and 14.22%, respectively, well above the minimum regulatory requirement.

2016 2017
For the Year (In Thousand Pesos)
Net Interest Income 16,694,195 19,626,403
Non-Interest Income 5,094,746 6,101,694
Operating Income 21,788,941 25,728,097
Provision for Impairment & Credit Loses 850,546 754,171
Operating Expenses 13,350,873 15,961,818
Net Income Attributable to Equity Holders of the Parent Bank 6,458,296 7,513,972
At Year End (In Thousand Pesos)
Total Resources 633,198,011 751,447,510
Loan Portfolio (Net) 386,827,300 448,970,942
Investment Securities 98,982,422 127,970,546
Total Deposits 541,583,018 635,093,393
Stockholders' Equity 63,386,204 83,655,497
Number of Branches 541 596
Number of ATMs 805 888
Number of Employees 8,124 9,124
Key Performance Indicators (in %) Profitability
Return on Average Equity 10.42 10.01
Return on Average Assets 1.16 1.12
Net Interest Margin 3.20 3.11
Cost to Income Ratio 61.27 62.04
Liquidity
Liquid Assets to Total Assets 34.39 36.40
Loans to Deposit Ratio 71.43 70.69
Asset Quality
Non-Performing Loans Ratio 1.86 1.41
NPL Cover 91.00 99.02
Capitalization
Capital Adequacy Ratio (CET 1/Tier 1) 11.30 13.47
Capital Adequacy Ratio (Total CAR) 12.21 14.22
Shareholder Information Market Value
Market Price Per Share (In Pesos) 33.511/ 33.30
Market Capitalization (In Thousand Pesos) 76,077,058 89,402,898
Valuation
Earnings Per Share (In Pesos) 2.881/ 2.91
Book Value Per Share (In Pesos) 23.611/ 31.16
Price to Book Ratio (x) 1.42 1.07
Price to Earnings Ratio (x) 11.64 11.44
Dividends
Cash Dividends Paid (In Thousand Pesos) 1,853,728 1,988,719
Cash Dividends Per Share (In Pesos) 1.0 0.8
Cash Payout Ratio (In %) 33.06 30.79
Cash Dividend Yield (In %) 3.09% 2.36%
Stock Dividends Paid (In Thousand Pesos) 1,482,993 1,988,729
Stock Dividends Per Share 8 8

1/Restated to show the cumulative effects of stock dividends & stock rights

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