CHINA Banking Corp. (Chinabank), the country's fourth-largest private lender by asset size, reported earning P5.9 billion in the first quarter of 2024, up 18 percent year-on-year, amid the brisk growth of its core businesses.

This led to a return on equity of 15.5 percent and a return on assets of 1.6 percent, the Sy-led bank said in a regulatory filing on Monday.

"We are focused on sustaining our growth trajectory. Our good first-quarter results provide the momentum to [achieve] our ambitious goals and targets," Chinabank President and CEO Romeo Uyan Jr. said.

Net interest income was said to have climbed 18 percent to P15 billion on the back of increased asset yields and loan volume, while net interest margin improved to 4.4 percent.

Following the improvement in economic conditions, the bank was able to lower provisions for loan losses to P302 million.

The growth of operating expenses was kept in check at six percent to P7.2 billion, resulting in a better cost-to-income ratio of 48 percent.

Chinabank ended the first three months of the year with gross loans growing by 11 percent to P805 billion due to robust demand from businesses and consumers.

Credit quality was controlled as the nonperforming loan (NPL) ratio improved to 1.8 percent and NPL coverage settled at 143 percent.

On the funding side, the bank's consolidated deposits reached P1.2 trillion, 13 percent higher year-on-year. Total assets, meanwhile, amounted to P1.5 trillion at the end of March 2024.

The bank's capital stood at P154 billion, with common equity tier 1 and capital adequacy ratios beyond minimum regulatory requirements at 15.3 percent and 16.2 percent, respectively.

"With our strong balance sheet and capital position, we can sufficiently fund our growth plans in the years ahead," Chinabank Chief Finance Officer Patrick Cheng said.

Last year, core businesses also lifted the bank's earnings to a record high of P22 billion, up 15 percent from the P19.1 billion booked in 2022.

In April, the Chinabank board approved the declaration of regular and special cash dividends totaling P5.9 billion, its highest payout so far.

The dividends will be paid on May 16 to all stockholders on record as of May 3 out of the bank's retained earnings at the end of last year.

Chinabank shares on Monday closed 1.06 percent higher at P38.20 apiece.