China Bank at 90: Enabling success for its customers
The year 2010 marks China Bank’s 90 years of successful operations. Founded in 1920 by Dr. Albino Z. Sycip and Dee C. Chuan along with other leading industrialists and businessmen, China Bank is the first privately-owned commercial bank in the Philippines. When it opened 89 years ago, a stern commitment was made by its founders and its employees, less than twenty then – that China Bank will be a catalyst of wealth creation and that it will be driven with a constant passion to be the best bank for its customers. This commitment is so deeply ingrained in the Bank’s culture that even the passing of time and the changing of hands could not erase or alter. Now close to 230 branches and over 3,800 employees after
, China Bank continues toimplement vigilant strategies to improve performance and to build up its fundamentals, guided by a strong commitment to excel not for glory but for its customers.
, China Bank continues toimplement vigilant strategies to improve performance and to build up its fundamentals, guided by a strong commitment to excel not for glory but for its customers.
Among the best in Southeast Asia
China Bank was recently cited as one of the top 100 ASEAN companies in creating wealth for its shareholders. Only eleven Philippine companies, including China Bank, made it to the ASEAN 100 Relative Wealth Added (RWA) Index, a list of the 100 best-performing companies which outperformed their peers of publicly-listed companies throughout Southeast Asia in terms of creating wealth for shareholders using the methodology developed by New York-based Stern Stewart & Co. In preparing the rankings, Stern Stewart & Co. measured the Wealth-Added Index (WAI) and RWA Index of ASEAN companies in a six-year business cycle (2001 to 2008).China Bank has achieved record growths from 2001 to 2007, posting one of the highest return on investment and return on equity during this period. Even when the crisis hit the Philippines in 2008, China Bank’s stock price was among those that dropped the least, outperforming even the biggest banks in the country.
Among the best in the Philippines
Despite the challengingbusiness environment and the continued implementation of its biggest branch expansion plan in its 89-year history, China Bank’s performance for the first half of the year is one of the best in the industry. The Bank posted a net income of P2.02 billion from January to June, 38.8% higher than the P1.46 billion income recorded for the same period last year. This translates to a return on equity of 14.87% and return on assets of 1.92%. Total revenues increased by 24.4%, driven by growth in net interest revenues and fee-based/other revenues. Notwithstanding the increase in operating expenses as a result of the investments in new branches, ATMs and in new technology platforms, cost-to-income ratio improved to 55.24%. All other financial measures significantly improved: Total resources expanded by12.2%, grossloans increased by 8.1%, the NPL ratio dropped to 4.92%. Total capital funds stood at P28.58 billion, with a Tier 1 capital adequacy ratio (CAR) of 12.54% and Total CAR of 13.43%, further affirming China Bank’s position as one of the country’s best-capitalized banks.
The best branch expansion in recent years
China Bank has been aggressively expanding since 2005 which has resulted to the almost doubling of its footprint in less than four years. Since January this year, it has opened ten of the planned 30 additional branches, including China Bank Cebu Business Center, the Bank’s business hub in the South. The expansion program will continue well into 2010 until the Bank’s target network of 300 branches is achieved. The accelerated growth of the Bank’s branch network fueled the sustained increase in both low-cost and dollar deposits, boosting total deposits to P175.86 billion as of the first half of 2009.
The best home loan rates
Ever since it began offering consumer loans, China Bank’s goal is to make building, buying, or renovating a home affordable for the average Filipino. Historically, China Bank’s interest rates are the most competitive and as of this writing, its home loan rate is the lowest in the industry – only 8.50% per annum fixed for one year.The Bank also gives customers the option to have the interest rate fixed longer as protection from future rate increases with other low interest rate fixing schemes: 9.50% p.a. fixed for 2 to 3 years, 9.75% p.a. fixed for 4 to 5 years, 10.50% p.a. fixed for 6 to 10 years and 11.00% p.a. fixed for 15 years, 11.25% p.a. fixed for 16 to 20 years, and 11.50% p.a. fixed for 25 years.
One of the best in the market – remittance as fast as text!
China Bank partneredwith Smart Communications Inc., the leader in mobile telecommunications in the Philippines, for a new remittance service designed to be the fastest way to receive remittances from Saudi Arabia, UAE, Qatar, Kuwait and Singapore – the China Bank Smart Money Card, launched in March this year. Through the service, it takes only 2 seconds for the remittance from abroad to reach a China Bank Smart Money cardholder in the Philippines, utilizing Smart’s mobile commerce platform, the Smart Services Hub System.
Best-of-class e-banking services
China Bank has always kept abreast of modern innovations, investing heavily on acquiring and developing state-of-the art banking technologies to provide its customers with convenient and secure 24/7 access to their accounts anywhere. The Bank was the first local bank to offer phone banking in 1988. In 2005,it launched its Internet and mobile banking platform, China Bank Online which was awarded in 2006 as the Best Banking & Finance Website at the Philippine Webby Awards and again in 2007 as the People’s Choice for the Best Corporate Website.
China Bank is set to scale greater heights as it continues to make its customers’ success its business. Ever mindful of the changing banking landscape, the Bank constantly re-engineers its processes, enhances its technology platforms, improves its customer serviceand develops new product offerings to meet its customers’ financial needs and exceed their rising expectations. As China Bank grows, evolves and changes throughthe years – opening more branches, installing more ATMs and expanding its services through its private banking and trust arms, its subsidiary, China Bank Savings, and its bancassurance joint venture, Manulife China Bank Life Assurance Corporation, it never wavers in its commitment to be a prime catalyst in the creation of wealth and ultimately, be the best bank for its customers.
