China Banking Corp. · PSE:CBC
China Banking — Q1 2025 Earnings Presentation
35 slides from China Banking's earnings presentation, May 8, 2025
Slide 1: Analysts' Briefing 1Q 2025 Results
Analysts’ Briefing 1Q 2025 Results May 8, 2025
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
Slide 4: 1Q 2025 Financial Performance
1Q 2025 Financial Performance
Slide 5: 1Q 2025 Financial Highlights
1Q 2025 Financial Highlights P6.5 Bn 15.1% 15.6% P65.0 1Q 2025 Net Income Return on Equity CET-1 Ratio Book value per share 1Q 2025 Net income grew 10% to P6.5 billion; Income Statement Resilient NII despite pressure on funding cost; NIM improved by 7 bps YoY to 4.49% in 1Q 2025; Gross Loans (
Slide 6: 1Q 2025 Financial Highlights: Income Statement
1Q 2025 Financial Highlights YoY INCOME STATEMENTS (In Php millions) 1Q2024 4Q2024 1Q2025 change Interest income 21,900 25,027 25,357 16% Interest expense (6,924) (7,943) (8,227) 19% Net interest income 14,975 17,084 17,129 14% Fee-based income 63 2,096 (832) n.m. Total revenue 15,038 19,181 16,298
Slide 7: 1Q 2025 Financial Highlights: Balance Sheet
1Q 2025 Financial Highlights YoY BALANCE SHEETS (In Php millions) Mar 2024 Dec 2024 Mar 2025 change Liquid Assets 120,354 133,767 103,792 (14%) Investment Securities 551,753 542,695 552,470 0% Net Loans 786,072 915,230 936,126 19% Other Assets 47,955 54,402 59,013 23% Total Assets 1,506,134 1,646,09
Slide 8: Sustained profitability amidst a challenging environment
Sustained profitability amidst a challenging environment Quarterly Net Income (In PHP Bn) Breached the P6-billion quarterly net income mark starting 3Q’24 +10% 6.9 6.4 6.5 5.8 5.8 5.9 5.5 5.2 5.4 4.9 5.0 4.6 4.4 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 8
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) +14% vs 1Q24 18.0 23 consecutive 16.0 17.1 17.1 6.32% 6.46% 6.50% 6.47% 6.57% 6.69% 6.70% 6.65% +18 bp vs 16.0 quarters of growth 15.0 15.4 6.12% 1Q24
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) +14% YoY 20 0.7 0.5 0.6 Gross yield 2.9 Total Deposits and 16 up 18 bps Cost of funds 17.1 Bills payables up YoY up 17 bps 8% and 18%, respectively YoY 15.0 Gross Loans grew 19% YoY
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) 3,500 -4% 2,978 3,000 2,871 2,500 Miscellaneous Core fee income continues to grow on higher +1% YoY 1,725 deposits, Trust and transaction-based income 2,000 1,751 Gain on investment properties 1,500 -76%YoY
Slide 12: Demonstrated strategic cost efficiency
Demonstrated strategic cost efficiency Operating Expenses ex provisions (in PHP Bn) .0 .0 +17% 8.4 .0 7.1 +8% YoY Others 2.2 .0 +2.3x YoY IT Expense 2.0 PDIC fees higher due to bigger deposit balance .0 0.7 0.4 .0 0.3 +7% YoY Depreciation 0.4 0.8 IT expense grew 2.3x YoY on sustained .0 0.7 inve
Slide 13: Improving asset quality and sufficient NPL cover
Improving asset quality and sufficient NPL cover Lower provisions as a result of improving asset quality NPL ratio has improved; NPL cover more than adequate Provisions (In PHP Mn) 3.0% 140% 119% 112% 120% 2.5% 108% -6% 302 285 100% 2.0% 1.8% 1.6% 80% 1.5% 1.5% 60% 1.0% 40% 0.5% 20% 0.0% 0% 1Q2024 1
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, March 2025 Business Consumer 933 +19% YoY 954 Auto 791 805 212 229 +19% YoY 718 12% 624 181 192 Housing 144 123 53% P229 Bn 721 7
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 2.04 CASA +8% YoY Time Time 1.83 1,331 1,331 1,229 1.67 1,187 1,066 1.35 1.14 1.11 725 +7% YoY 0.94 863 738 0.77 611 676 492 0.48 308 Pre-pandemic CASA
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; 18% to support Asset Capital growth; and Ratios to sustain dividend payment to shareholders 0.2% 16% 0.2% 16.1% 16.2% 16.5% 0.7% 15.8% 15.9% 0.7% 0.9% 0.9% 0.9% 15.6% 0.8% 0.9% 15.3% 14.9
Slide 17: Increasing dividend payments to Shareholders
Increasing dividend payments to Shareholders 10.0 30% Consistent growth in dividend per share over the last five years 9.0 27% 27% 27% 27% 25% 8.0 22% +14% 6.7 3.00 +2.5x vs. 2021 7.0 20% 2.50 5.9 2.50 6.0 2.20 5.1 1.90 5.0 2.00 15% 1.00 4.0 1.50 1.00 4.0 1.50 0.90 2.7 10% 3.0 1.00 0.50 1.00 2.0 +25
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; +26% Trust Fees Identified opportunities to cross-sell additional products or services +20% Bancassurance Commissions In
Slide 19: In summary, Chinabank continues to be..
In summary, Chinabank continues to be.. 1Q’24 FY’24 1Q’25 Return on Equity 15.5% 15.6% 15.1% Profitable Return on Assets 1.6% 1.6% 1.6% CET 1/Tier 1 Ratio 15.3% 15.3% 15.6% Adequately-capitalized Capital Adequacy Ratio 16.2% 16.2% 16.5% NPL Ratio 1.8% 1.6% 1.5% Well-managed NPL Cover* 119% 108% 112%
Slide 20: Q&A
Q&A Please click the “Raise Hand” button to be recognized. You may also send questions thru the chat box.
Slide 21: Additional Information
Additional Information
Slide 22: History of Chinabank
History of Chinabank Pre-2000s 2007 - 2015 2016 - 2019 2020 - 2025 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 2022. Became the 4th largest Entered into a bancassurance J
Slide 23: Company Profile
Company Profile Extensive Distribution Channels* Subsidiaries & Affiliates 651 1,087 11,357 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 March
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 +37% Banking Digital TXNs year-on-year 1Q 2025 vs 1Q 2024 Bringing our signature touch in relationship banking to our +21% customers anytime, O/S Active Users anywhere. year-on-year +18% O/S Enrollments ≈75% year-on-year +26% 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-23 Dec-24 Mar-25 Par value (PHP) 10.00 Book value per share 55.8 62.6 65.0 Outstanding shares 2,691,343,012 Earnings per share 8.2 9.2 9.7 Stock price as of May 5, 2025 91.6 Price to
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: Balance Sheets
Historical Financial Highlights BALANCE SHEETS Mar 25 vs Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Mar 2024 Mar 2025 in Php billions, except % Mar 24 Liquid Assets 205 188 178 155 134 120 104 -14% Investment Securities 236 279 412 505 543 552 552 0% Net Loans 557 609 700 772 915 786 936 19% Other
Slide 33: Historical Financial Highlights: Income Statements
Historical Financial Highlights INCOME STATEMENTS 1Q25 vs FY2020 FY2021 FY2022 FY2023 FY2024 1Q2024 1Q2025 In Php billions, except % 1Q24 Interest income 47.7 46.5 57.2 79.4 93.8 21.9 25.4 16% Interest expense (13.3) (7.4) (11.6) (25.8) (30.2) (6.9) (8.2) 19% Net interest income 34.4 39.1 45.6 53.5
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!
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