China Banking Corp. · PSE:CBC
China Banking — FY2024 Earnings Presentation
35 slides from China Banking's earnings presentation, Mar 4, 2025
Slide 1: Analysts' Briefing FY 2024 Results
Analysts’ Briefing FY 2024 Results March 4, 2025 1
Slide 2: Panelists
Panelists Patrick D. Cheng Gerald O. Florentino Chief Finance Officer Investor Relations Head 2
Slide 3: Reminders
REMINDERS: Microphones and cameras are disabled during the presentation. For the Q & A, attendees may: Post a live question click the “Raise Hand” button to be recognized Send questions thru the chat box 3
Slide 4: FY 2024 Financial Performance
FY 2024 Financial Performance 4
Slide 5: FY 2024 Financial Highlights
FY 2024 Financial Highlights P24.8 Bn 15.6% 15.3% P62.6 FY 2024 Net Income Return on Equity CET-1 Ratio Book value per share FY2024 Net income grew 13% to P24.8 billion; Income Statement Resilient NII despite pressure on funding cost; NIM improved by 21 bps YoY to 4.45% in 2024; Gross Loans (+
Slide 6: FY2024 Financial Highlights: Income Statement
FY2024 Financial Highlights INCOME STATEMENTS (In Php millions) FY2023 FY2024 YoY change Interest income 79,368 93,754 18% Interest expense (25,840) (30,215) 17% Net interest income 53,528 63,539 19% Fee-based income 564 1,950 246% Total revenue 54,091 65,489 21% Operating expenses (27,037) (30,749)
Slide 7: FY2024 Financial Highlights: Balance Sheet
FY2024 Financial Highlights BALANCE SHEETS (In Php millions) Dec 2023 Dec 2024 YoY change Liquid Assets 155,279 133,767 (14%) Investment Securities 504,581 542,695 8% Net Loans 771,992 915,230 19% Other Assets 46,192 54,402 18% Total Assets 1,478,043 1,646,093 11% Deposits 1,186,724 1,331,147 12% CA
Slide 8: Sustained profitability amidst a challenging environment
Sustained profitability amidst a challenging environment Quarterly Net Income (In PHP Bn) Annual Net Income (In PHP Bn) +13% 24.8 22.0 19.1 Breached the P6-billion quarterly net income mark starting 15.1 3Q’24 +10% 6.9 6.4 5.8 5.8 5.9 5.5 4.9 5.2 5.0 5.4 4.6 4.4 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q
Slide 9: Resilient NII despite pressure on funding costs
Resilient NII despite pressure on funding costs NIM stabilizes above 4% Net interest income continues to grow Q-on-Q Net Interest Income (In PHP Bn) +19% vs 4Q23 +7% vs 3Q24 18.0 22 consecutive 16.0 17.1 6.32% 6.46% 6.50% 6.47% 6.57% 6.69% 6.70% +1 bp vs 16.0 quarters of growth 15.0 15.4 6.12% 3Q24
Slide 10: Resilient NII despite pressure on funding costs
Resilient NII despite pressure on funding costs Net interest income continues to grow Net Interest Income (In PHP Bn) +19% YoY 72 3.0 68 1.3 4.0 0.1 64 60 Gross yield Total 63.5 10.4 up 26 bps Deposits Cost of 56 deposits YoY up 12% YoY 52 up 10 bps 48 53.5 Gross Loans and YoY investment 44 securiti
Slide 11: Core fee-based income remains strong
Core fee-based income remains strong Fee-based Income, ex trading and FX losses (In PHP Mn) 16,000 +119% 14,853 14,000 Miscellaneous 12,000 +6.2X YoY Core fee income continues to grow on higher 8,920 10,000 Gain on investment properties deposits, Trust and transaction-based income Flat YoY 8,000 6
Slide 12: Demonstrated strategic cost efficiency
Demonstrated strategic cost efficiency Operating Expenses ex provisions (in PHP Bn) .0 +14% 30.7 +14% YoY Others .0 27.0 7.5 +47% YoY IT Expense .0 Volume-related taxes higher due to bigger 6.6 deposit balances and higher gross revenues 1.6 .0 2.3 +14% YoY Depreciation 1.1 2.0 3.1 IT expense gre
Slide 13: Improving asset quality and sufficient NPL cover
Improving asset quality and sufficient NPL cover Taking a more proactive stance against portfolio risks NPL ratio has improved; NPL cover more than adequate Provisions (In PHP Bn) 13.0% 160% 139% 129% 140% 11.0% 128% 8.9 8.9 9.0 123% 116% 120% 9.0% 104% 108% 100% 7.0% 103% 94% 95% 94% 89% 80% 5.0% 3
Slide 14: Sustained loan growth
Sustained loan growth Continued expansion in both consumer and business segments Well-secured consumer lending portfolio Gross Loans (In PHP Bn) Consumer Loans Breakdown, December 2024 Auto Business Consumer +18% YoY 933 13% Housing 791 212 +18% YoY 718 53% P212 Bn 624 181 572 144 123 Unsecured 114
Slide 15: Managed Deposit growth
Managed Deposit growth CASA inched up and still above pre-pandemic level Deposits per branch (In PHP Bn) Deposits (In PHP Bn) Chart Title CASA 2.05 CASA +12% YoY Time Time 1.83 1,331 1.67 1,187 1,066 1.32 1.35 1.14 +21% YoY 0.94 835 863 738 0.77 611 492 0.48 0.58 308 366 Pre-pandemic CASA level 0.87
Slide 16: Strong internal capital generation results to higher buffer
Strong internal capital generation results to higher buffer Enough capital buffer: to absorb credit shock; 20% to support Asset Capital growth; and Ratios to sustain dividend payment to shareholders 18% 0.7% 15.9% 16.1% 16.2% 2.9% 15.8% 1.8% 14.7% 0.9% 0.9% 0.9% 16% 0.3% 0.8% 0.9% 15.3% 15.3%
Slide 17: Increasing dividend payments to Shareholders
Increasing dividend payments to Shareholders 8.00 30% 29% 27% 27% 27% 27% 7.00 25% +16% 5.9 6.00 22% 5.1 20% 5.00 4.0 4.00 15% 3.00 2.7 2.7 2.4 2.20 10% 1.90 2.00 1.50 0.88 1.00 1.00 5% 1.00 - 0% 2019 2020 2021 2022 2023 2024 Dividend per share Dividend (in P Bn) Pay-out ratio 17
Slide 18: We are executing our strategies
We are executing our strategies Expanded Business Relationships Increased contributions from ancillary businesses Encouraged clients to access both sides of the balance sheet; +18% Trust Fees Identified opportunities to cross-sell additional products or services +21% Bancassurance Commissions In
Slide 19: In summary, Chinabank continues to be..
In summary, Chinabank continues to be.. 2022 2023 2024 Return on Equity 15.1% 15.5% 15.6% Profitable Return on Assets 1.6% 1.6% 1.6% CET 1/Tier 1 Ratio 15.1% 15.3% 15.3% Adequately-capitalized Capital Adequacy Ratio 15.9% 16.1% 16.2% NPL Ratio 2.3% 2.5% 1.6% Well-managed NPL Cover 123% 104% 139% 19
Slide 20: Q&A
Q&A Please click the “Raise Hand” button to be recognized. You may also send questions thru the chat box. 20
Slide 21: Additional Information
[E} Chinabank Additional Information
Slide 22: History of Chinabank
History of Chinabank Pre-2000s 2007 - 2015 2016 - 2019 2020 - 2024 2020. Raised P15 Bn via fixed- 2007. Acquired Manila Bank and rate retail bonds; Celebrated operated it as China Bank 100 years and restored Binondo Savings; Business Center 2021. Raised P20 Bn via fixed- Entered into a bancassurance
Slide 23: Company Profile
Company Profile Extensive Distribution Channels* Subsidiaries & Affiliates 650 1,081 11,350 Investment Grade Credit Rating Best in Corporate Governance Five Golden-Arrow Recognition, the highest corporate governance Baa2 award given by the Institute Stable of Corporate Directors (ICD). *As of Decemb
Slide 24: SM Group: Strong Support & Synergies
SM Group: Strong Support & Synergies Chinabank benefits from being part of one of the largest and most diversified conglomerates in the Philippines Snapshot of SM Group Business Lines Chinabank’s Current Shareholdings Others SM Group 34% 39% SM Investments – 23% Retail Banking Property Sysmart Corp.
Slide 25: Digital Banking
Digital +30% Banking Digital TXNs year-on-year FY 2024 vs FY 2023 Bringing our signature touch in relationship banking to our +20% customers anytime, O/S Active Users anywhere. year-on-year +23% O/S Enrollments ≈73% year-on-year +30% share of digital & e- banking to total TXNs FY 2024 Digital Gross
Slide 26: Awards & Achievements
Awards & Achievements CHINA BANKING CORPORATION Chinabank is among the TITANIUM AWARD largest companies in terms of total revenues in the Fortune EXCELLENCE IN ENVIRONMENTAL, SOCIAL, AND GOVERNANCE Southeast Asia 500 list 26
Slide 27: Other Citations
Other Citations Best Credit Card for Best Home Loan Travelers in the Financing in the Suntrust P25 Bn Repower Energy Best Managed Fund Philippines, Philippines Project Finance Development for Bond Long-Term Cesar E.A. Virata Facility Corporation IPO Dollar Category Award Chinabank Chinabank HomePlus
Slide 28: Highly capable management team
Highly capable management team Hans T. Sy Gilbert U. Dee Romeo D. Uyan, Jr. Chairman of the Board Vice Chairman of the Board President and Chief Executive Officer Chairman since 2011 Vice Chairman since 2011 With CBC since 2014 Member of the Board since 1986 Member of the Board since 1969
Slide 29: Market Data
Market Data TRADING INFORMATION TRADING INFORMATION MARKET VALUATION Ticker (Bloomberg I Reuters) CBC PM I CBC.PS Dec-22 Dec-23 Dec-24 Par value (PHP) 10.00 Book value per share 50.0 55.8 62.6 Outstanding shares 2,691,343,012 Earnings per share 7.1 8.2 9.2 Stock price as of February 25, 2025 86.80 P
Slide 30: Profitability significantly improved since 2019
Profitability significantly improved since 2019 Became the 4th Reached P1 trillion largest private bank in Assets and P100 in PH in terms of Incorporated China billion in Equity Assets Acquired Bank Capital Pampanga-based Acquired Raised P15 billion Unity Bank Entered credit card from stock rights P
Slide 31: Focus on optimizing branches in the last 5 years
Focus on optimizing branches in the last 5 years Became the 4th Reached P1 trillion largest private bank in Assets and P100 in PH in terms of Incorporated China billion in Equity Assets Acquired Bank Capital Pampanga-based Acquired Raised P15 billion Unity Bank Entered credit card from stock rights
Slide 32: Historical Financial Highlights
Historical Financial Highlights BALANCE SHEETS Dec 24 vs Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 in Php billions, except % Dec 23 Liquid Assets 144 205 188 178 155 134 (14%) Investment Securities 213 236 279 412 505 543 8% Net Loans 569 557 609 700 772 915 19% Other Assets 37 38 36 40
Slide 33: Historical Financial Highlights
Historical Financial Highlights INCOME STATEMENTS FY24 vs FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 In Php billions, except % FY23 Interest income 47.7 47.7 46.5 57.2 79.4 93.8 18% Interest expense (21.6) (13.3) (7.4) (11.6) (25.8) (30.2) 17% Net interest income 26.1 34.4 39.1 45.6 53.5 63.5 19% Fee
Slide 34: Legal Disclaimer
Legal Disclaimer This presentation and the information contained herein as well as the materials distributed herewith ("Presentation") are the sole and exclusive property of China Banking Corporation (“Chinabank”) and shall only be used for the purpose intended herein. None of the information contai
Slide 35: Thank You!
[E} Chinabank Thank You! Focused on You