CHINA Banking Corp. (China Bank), the country’s fourth largest universal bank by market capitalization, reported a January  to September net income of P3.21 billion, 40.7 percent higher than the P2.28 billion income recorded for the same period last year.

This performance translates to a 15.53 percent return on equity and a 2.02 percent return on assets, among the highest in the industry, it said in a press statement.

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China Bank’s robust growth was driven by a 22.8 percent increase in revenues to P13.02 billion. Net interest revenues before loan loss provisions jumped 29.5 percent, driven by stronger lending and improved margins arising from continued growth in low-cost deposits. Non-interest revenues rose 684 percent, boosted by higher trading and forex gains and revenues from disposal of acquired assets.

China Bank is pursuing the largest branch expansion program in its 89-year history, coupled with investments in more ATMs and new technology platforms. Still, the bank’s cost-to-income ratio improved to 55.8 percent from 58.7 percent for the same period last year.

“With our continued focus on improving service, strengthening our balance sheet, and effective management of risks, we were able to sustain our growth momentum for this year. Our double-digit growth is underpinned by our commitment to consistently deliver strong shareholder value,”said Ricardo R. Chua, China Bank executive vice president and chief operating officer.

Total assets slightly increased, by 2.80 percent to P214.39 billion from December 2008 level.Its financial position remains solid with total capital funds of P29.27 billion, translating to a tier 1 capital adequacy ratio (CAR) of 1,250 percent and total CAR of 13.38 percent.

China Bank was recently cited by US-based management consulting firm Stern Stewart & Company as one of the top 100 Asean listed companies and one of only two Philippine banks that surpassed their peers in terms of delivering shareholder value.

China Bank, established in 1920, is the first privately-owned commercial bank in the Philippines. It is on track to hitting its target of 300 branches by 2011. (PR)