China Banking Corp. · PSE:CBC

China Banking — H1 2025 Earnings Presentation

34 slides from China Banking's earnings presentation, Aug 1, 2025

  1. Slide 1: Analysts' Briefing 1H 2025 Results

    Analysts’ Briefing 1H 2025 Results August 1, 2025

  2. Slide 2: Panelists

    Panelists Patrick D. Cheng Gerald O. Florentino Chief Finance Officer Investor Relations Head 2

  3. 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

  4. Slide 4: 1H 2025 Financial Performance

    1H 2025 Financial Performance

  5. Slide 5: 1H 2025 Financial Highlights

    1H 2025 Financial Highlights P13.0 Bn 15.2% 15.62% P64.7 1H 2025 Net Income Return on Equity CAR Ratio Book value per share ✓ 1H 2025 Net income grew 14% to P13.0 billion; Income Statement ✓ Resilient NII despite pressure on funding cost; NIM improved by 13 bps YoY to 4.57% in 1H 2025; ✓ Gross Loans

  6. Slide 6: 1H 2025 Financial Highlights: Income Statements

    1H 2025 Financial Highlights INCOME STATEMENTS YoY 1H2024 2H2024 1H2025 In Php millions, except % change Interest income 44,702 49,052 51,186 15% Interest expense (14,284) (15,931) (16,312) 14% Net interest income 30,418 33,121 34,874 15% Fee-based income (1,369) 3,319 4,027 n.m. Total revenue 29,04

  7. Slide 7: 1H 2025 Financial Highlights: Balance Sheets

    1H 2025 Financial Highlights BALANCE SHEETS YoY Jun 2024 Dec 2024 Jun 2025 in Php millions, except % change Liquid Assets 124,197 133,767 101,511 (18%) Investment Securities 572,145 542,695 550,968 (4%) Net Loans 797,245 915,230 943,304 18% Other Assets 51,344 54,402 70,721 38% TOTAL ASSETS 1,544,93

  8. Slide 8: Sustained profitability amidst a challenging environment

    Sustained profitability amidst a challenging environment Quarterly Net Income (In PHP Bn) +14% 13.4 13.0 Breached the P6-billion quarterly net 11.4 income mark starting 3Q’24 +18% 6.9 6.4 6.5 6.5 5.8 5.8 5.9 5.5 5.0 5.4 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 1H24 2H24 1H25 8

  9. 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) +15% vs 2Q24 20.0 24 consecutive 6.69% 6.70% 6.65% 6.75% +18 bp vs 17.7 6.32% 6.46% 6.50% 6.47% 6.57% 2Q24 18.0 quarters of growth 17.1 17.1 6.12% (sin

  10. 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) 42 +15% YoY 38 1.3 1.0 0.7 Gross yield Total Deposits and 34 34.9 5.5 up 18 bps Bills payables up Cost of funds YoY 5% and 34%, up 10 bps YoY 30 respectively 30.4 Gross Loans grew 18

  11. Slide 11: Core fee-based income remains strong

    Core fee-based income remains strong Fee-based Income, ex trading and FX losses (In PHP Bn) 12.0 +122% 11.3 10.0 8.0 7.0 +15.7x YoY Gain on investment properties ✓ Core fee income continues to grow on higher 6.0 deposits, Trust and transaction-based income 5.1 -18% YoY Miscellaneous 0.4 4.0 ✓ The in

  12. Slide 12: Spending on initiatives aimed at driving revenue growth

    Spending on initiatives aimed at driving revenue growth Operating Expenses ex provisions (in PHP Bn) .0 .0 +18% 16.6 .0 +45% YoY Others 14.1 4.0 .0 +35 YoY IT Expense ✓ IT expense grew 35% YoY on sustained 2.8 .0 1.3 investments in technology and infrastructure. 0.9 1.0 .0 +3% YoY Depreciation 1.0 1

  13. Slide 13: Improving asset quality and sufficient NPL cover

    Improving asset quality and sufficient NPL cover Proactively set aside higher provisions to strengthen balance sheet NPL ratio has improved; NPL cover more than adequate Provisions (In PHP Bn) 3.0% 140% 8.9 8.9 9.0 125% 118% 120% 2.5% 108% 6.5 +8.9x 100% 2.0% 1.9% 3.3 1.6% 1.6% 80% 1.2 1.5% 0.7 60%

  14. Slide 14: Sustained loan growth

    Sustained loan growth Balanced expansion across both consumer and business segments Well-secured consumer lending portfolio Gross Loans (In PHP Bn) Consumer Loans Breakdown, June 2025 Business Consumer +18% YoY 965 933 Auto 817 791 212 238 +17% YoY 718 204 12% 624 181 144 Housing 123 52% P238 Bn 721

  15. Slide 15: Managed Deposit growth

    Managed Deposit growth CASA grew and solidly above pre-COVID levels Deposits per branch (In PHP Bn) Deposits (In PHP Bn) Chart Title CASA 2.05 2.08 CASA +5% YoY Time Time 1,350 1.83 1,331 1,283 1.67 1,187 1,066 1.12 1.35 1.14 725 0.94 863 738 +1% YoY 0.77 715 611 492 0.48 308 Pre-pandemic CASA level

  16. Slide 16: Strong internal capital generation results to ample buffer

    Strong internal capital generation results to ample buffer Enough capital buffer: ✓ to absorb credit shock; ✓ to support Asset Capital growth; and Ratios 18% ✓ to sustain dividend payment to shareholders 0.7% 16% 1.4% 0.2% 15.9% 16.1% 16.2% 15.8% 15.6% 0.8% 0.9% 0.9% 0.9% 1.0% 0.9% 15.3% 14% 14.7% 1

  17. 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% 3.00 +2.5x vs. 2021 7.0 6.7 20% ₱2.50 5.9 2.50 6.0 ₱2.20 5.1 2.00 ₱1.90 ₱1.00 5.0 15% 4.0 ₱1.00 ₱1.50 4.0 1.50 ₱0.90 10% ₱0.50 3.0 2.7 ₱1.00 1.0

  18. 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; +21% YoY Trust Fees (with AUM at P319 Billion) ✓ Identified opportunities to cross-sell additional +18% YoY Bancassurance

  19. Slide 19: In summary, Chinabank continues to be..

    In summary, Chinabank continues to be.. 1H’24 FY’24 1H’25 Return on Equity 15.1% 15.6% 15.2% Profitable Return on Assets 1.5% 1.6% 1.6% CET 1/Tier 1 Ratio 14.5% 15.3% 14.7% Adequately-capitalized Capital Adequacy Ratio 15.3% 16.2% 15.6% NPL Ratio 1.9% 1.6% 1.6% Well-managed NPL Cover* 118% 108% 125%

  20. Slide 20: Q&A

    Q&A ✓ Please click the “Raise Hand” button to be recognized. ✓ You may also send questions thru the chat box.

  21. Slide 21: Additional Information

    Additional Information

  22. 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

  23. Slide 23: Company Profile

    Company Profile Extensive Distribution Channels* Subsidiaries & Affiliates 650 1,109 11,440 Investment Grade Credit Rating Best in Corporate Governance Five Golden-Arrow Recognition, the highest corporate governance award Baa2 given by the Institute of Stable Corporate Directors (ICD). *As of June 3

  24. 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.

  25. Slide 25: 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 25

  26. Slide 26: Other Citations

    Other Citations Image result for philippine dealing system Service Innovation of Banking for Women the Year Philippines Initiative of the Year Debt Deal of the Year Project Sustainability-Linked Top Brokering Philippines Philippines Infrastructure Bond of the Year Participant for Retail 30-Minute In

  27. Slide 27: 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

  28. Slide 28: Market Data

    Market Data TRADING INFORMATION TRADING INFORMATION MARKET VALUATION Ticker (Bloomberg I Reuters) CBC PM I CBC.PS Dec-23 Dec-24 Jun-25 Par value (PHP) 10.00 Book value per share 55.8 62.6 64.7 Outstanding shares 2,691,343,012 Earnings per share 8.2 9.2 9.8 Stock price as of July 28, 2025 64.00 Price

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: Historical Financial Highlights

    Historical Financial Highlights BALANCE SHEETS Jun 25 vs Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Jun 2024 Jun 2025 in Php billions, except % Jun 24 Liquid Assets 205 188 178 155 134 124 102 -18% Investment Securities 236 279 412 505 543 572 551 -4% Net Loans 557 609 700 772 915 797 943 18% Othe

  32. Slide 32: Historical Financial Highlights

    Historical Financial Highlights INCOME STATEMENTS 1H25 vs FY2020 FY2021 FY2022 FY2023 FY2024 1H2024 1H2025 In Php billions, except % 1H24 Interest income 47.7 46.5 57.2 79.4 93.8 44.7 51.2 15% Interest expense (13.3) (7.4) (11.6) (25.8) (30.2) (14.3) (16.3) 14% Net interest income 34.4 39.1 45.6 53.

  33. Slide 33: 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

  34. Slide 34: Thank You!

    Thank You! 3 > c ° xe] oY uv > v fe) Lo inabc

China Banking — H1 2025 Earnings Presentation on 6ix