Bank of China reports 10% net profit growth in first nine months of 2023, according to Investing.com

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Chinabank’s net profit rose 10% to 16.2 billion pesos ($322 million) in the first nine months of 2023, according to its latest financial results, up from 14.7 billion pesos in the same period last year. The bank’s return on equity was 15.6% and return on assets was 1.6%. In the third quarter alone, Bank of China’s net profit increased 16% to 5.4 billion pesos.

The bank’s growth was attributed to strong core business performance and lower loan loss provisions. Despite facing a high interest rate environment, Bank of China still achieved a 16% increase in net interest income to 39.2 billion pesos, offsetting soaring interest expenses.

The bank’s operating expenses increased 14% to P20.5 billion due to higher labor and inflation-related costs. However, the cost-to-income ratio remains at 50%. Bank of China Chief Executive Romeo D. Uyan Jr. emphasized the bank’s focus on maintaining profitability, managing costs and leveraging technology.

Total loans increased 10% year-on-year to P765 billion, mainly due to a sharp 19% increase in consumer loans, including teacher loans and credit cards. The bank’s non-performing loan ratio remains at the industry average of 2.2%, and its bad debt coverage ratio is 126%.

Total deposits increased significantly by 14% to 1.1 trillion pesos, and the Current Account Savings Account (CASA) ratio reached 49%. The bank’s total assets grew 11% to 1.4 trillion pesos, solidifying Bank of China’s position as the country’s fourth-largest private bank.

Bank of China’s common equity tier one capital adequacy ratio is 14.9%, and its total capital adequacy ratio is 15.8%. The bank’s total capital increased by 7% to P141 billion, indicating strong capital creation and good asset quality. This growth is consistent with the bank’s ongoing efforts to optimize its capital structure. Book value per share remained unchanged at P52.50, while the bank’s share price was unchanged at P30.40.

This article was created and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.

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