CHINA BANK Savings, Inc. (CBS), the thrift banking arm of listed China Banking Corp. (Chinabank), is aiming to grow its loan book by 20% this year and double its net income in the next five years, driven by the retail sector and its target to expand its lending to small and medium businesses.
“For this year, we’re aiming to grow our loan portfolio by approximately 20% from our December 2024 numbers. Our drivers are mostly on the retail side… We aim to double our income in five years’ time,” CBS President James Christian T. Dee said at a media briefing following their annual stockholders’ meeting on Thursday.
CBS’ net income grew by 22.51% year on year to P566 million in the first quarter from P462 million a year prior, based on the quarterly report of its listed parent.
Its balance sheet for the period showed that its gross loan portfolio expanded to P145.93 billion at end-March from P135.51 billion at end-December 2024, while its net loan portfolio rose to P143.61 billion from P133.04 billion.
Meanwhile, deposits grew to P170.73 billion at end-March from P166.79 billion at end-December 2024.
In 2024, the bank booked a net profit of P2.17 billion, rising by 18.75% year on year from P1.83 billion in 2024, its audited financial statement posted on its website showed. This translated to a return on assets of 1.25% and a return on equity of 12.96%.
Mr. Dee said this was the first time that CBS booked a net income above P2 billion. “On top of that, the bank also grew its customer base by 20%, reaching the 1 million customer mark for the first time.”
Earnings growth was mainly driven by higher interest income as the bank’s loans rose by 21.19% year on year to P133.69 billion, driven by home, auto, and payroll loans.
Mr. Dee said CBS wants to expand its small and medium enterprise (SME) loan book this year.
“CBS was the product of a few acquisitions, and we had to clean up a certain part of our loan portfolio from years back. I think it’s about 10 years ago with the acquisition of Plantersbank (Planters Development Bank). So, since then, we’ve cleaned the shop and so far, [our SME portfolio] is nice and shiny and we’re ready to grow it properly going forward,” he said.
CBS’ parent Chinabank took over Plantersbank in 2014. The SME-focused thrift bank was merged with CBS in 2015, with the latter as the surviving entity.
The bank will also launch the CBS Deloitte Environmental and Social Resilience Tool within the year to help both their corporate and SME clients gauge their sustainability risks.
Mr. Dee added that they are “cautiously optimistic” on their outlook for this year amid slowing economic growth and global trade uncertainties.
“We are very confident the BSP (Bangko Sentral ng Pilipinas) will be able to navigate these unfolding circumstances and guide the banking system in promoting economic growth. We do remain concerned on what higher tariffs mean for Philippine manufacturing, but we also remain confident in the Philippine government’s ability to bolster local industries. Overall, we must remain vigilant,” he said.
Meanwhile, CBS Chairman Ricardo R. Chua said the entry of BDO Network Bank, Inc. into the thrift banking space is unlikely to affect their own long-term targets.
BDO Network Bank in May received central bank approval for its conversion into a thrift bank from a rural bank. It had assets worth P124.05 billion at end-2024.
Meanwhile, CBS was the second-largest thrift bank in the country in asset terms in 2024 with P189.78 billion.
Both banks are part of the SM Group.
“The Philippines has been growing because of the consumer market. Consumer spending has been a major driver of the economy. So, we think that the consumer side of the business is going to grow significantly. We have a very young population; everybody wants to work, everybody wants to be productive. So, we thought it’s a growing market. Having BDO is a welcome development, but it will not derail us from whatever plans we have in growing the bank,” Mr. Chua said.
“We are happy to welcome them into the thrift banking space as there is a real need for more players to service the financial needs of the unbanked. Despite all the advances in banking, from policy to technology, we continue to encounter communities that are underserved. Our company vision to become the leading savings bank preferred by the market we serve is rooted in service. But that goal is secondary to fulfilling the mandate given to us by the BSP of providing financial services to all Filipinos. Thus, we view the entry of more reputable and stable banking institutions into the thrift banking space as an opportunity for collaboration between competitors for the benefit of the unbanked and all financial consumers,” Mr. Dee added.
CBS also aims to add five more branches this year from the current 170, mostly in Visayas and Mindanao, he said.
“We noted a huge potential in the southern part of the Philippines… We do want to strengthen our network in the southern part of the Philippines.” — A.M.C. Sy