Chinabank Posts Record P28B Net Income in 2025
China Banking Corporation, one of the Philippines’ largest private lenders, reported a record net income of P28 billion for 2025, marking a 13 percent increase from the previous year and underscoring the resilience of the country’s banking sector amid steady economic expansion.
The performance, disclosed to the Philippine Stock Exchange in late February, represents the strongest result in the bank’s history. It was propelled by double-digit loan growth, higher interest earnings and sustained consumer demand across the archipelago.
Loan Growth Powers Record Earnings
Chinabank’s core business — lending — served as the principal engine of growth. “China Banking Corporation (Chinabank; PSE: CBC) delivered a banner performance in 2025, reporting a record net income of P28 billion, up 13% from the previous year.”
The bank’s gross loans climbed 13 percent to P1.1 trillion, surpassing the trillion-peso mark for the first time. Growth was driven by strong demand from both corporate borrowers and retail clients seeking home, auto and business financing.
Interest income rose 12 percent to P105.2 billion, contributing to total operating income of P75.7 billion, up 16 percent year on year. Non-interest revenues also improved, bolstered by higher transactional fees, trust income and bancassurance activities.
“The bank’s core lending business served as a primary engine for growth, with interest income climbing 12% to P105.2 billion, fueled by strong demand across various loan segments.”
Stable Asset Quality and Strong Provisions
Despite rapid credit expansion, Chinabank maintained steady asset quality. The bank’s non-performing loan (NPL) ratio held at 1.6 percent, a level considered manageable by industry standards.
In a move reflecting caution rather than concern, the lender allocated P7 billion in credit provisions, lifting its NPL coverage ratio to 109 percent. This buffer means the bank has set aside more than enough reserves to cover its identified bad loans.
“Although the non-performing loans (NPL) ratio kept steady at 1.6%, the bank more than doubled its safety net, setting aside P7 billion in credit provisions. This proactive move resulted in an NPL coverage ratio of 109%, well above the industry average.”
The figures demonstrate a balancing act: expanding lending to capture growth while reinforcing safeguards against potential credit shocks.
Deposits and Assets Continue to Climb
The bank’s funding base also expanded. Total deposits grew 9 percent to P1.4 trillion, with nearly half — 48 percent — held in low-cost current and savings accounts. This mix provides a stable and relatively inexpensive source of funding for lending activities.
Total assets increased 8 percent to P1.8 trillion, solidifying Chinabank’s position as the Philippines’ fourth-largest private universal bank.
Operationally, the bank kept efficiency in check. Although operating expenses rose 12 percent to P34.4 billion, largely due to manpower costs, taxes and technology investments, the cost-to-income ratio improved to 45 percent. The improvement signals that revenue growth outpaced spending.
Capital Buffers Remain Above Regulatory Minimums
Chinabank ended 2025 with a solid capital base. Total equity rose 13 percent to P191.3 billion, while its common equity tier 1 ratio stood at 15.2 percent and total capital adequacy ratio at 16.1 percent.
These levels remain comfortably above regulatory requirements set by the Bangko Sentral ng Pilipinas, reinforcing the bank’s capacity to absorb potential losses while continuing to lend.
Return on equity reached 15.6 percent, while return on assets stood at 1.6 percent, indicators of profitability that place the bank among stronger performers in the domestic sector.
Digital Push and Consumer Focus
Beyond traditional banking, Chinabank invested further in digital infrastructure and customer-focused products. “Chinabank continued to invest in digital and customer-centric initiatives, which included launching new credit card offerings and enhancing mobile banking capabilities.”
Such upgrades are increasingly central in a country where overseas remittances, mobile payments and online transactions form a vital part of daily financial life. The bank’s expanding digital footprint supports both urban professionals and provincial entrepreneurs who rely on secure, accessible banking platforms.
Impact Beyond the Balance Sheet
The bank’s performance reflects broader currents in the Philippine economy. Expanding credit can serve as lubricant for commerce: loans fund factory upgrades, new delivery vehicles, condominium purchases and neighborhood store expansions. For depositors — including overseas Filipino workers sending money home — steady growth and strong capital buffers signal institutional stability.
With deposits at P1.4 trillion and capital ratios well above minimum standards, Chinabank’s 2025 results suggest a lender leaning into growth while fortifying its defenses. In a banking landscape shaped by regional uncertainties and global rate shifts, the institution’s record earnings mark both a milestone and a measure of confidence in the domestic market’s trajectory.
As the Philippine economy navigates evolving external pressures, Chinabank’s trillion-peso loan book and strengthened reserves position it as a significant pillar in the country’s financial architecture — one whose performance will ripple far beyond its balance sheet.
