CHINA BANK SAVINGS, Inc. (CBS) posted a net income of P1.19 billion in the first half of the year, supported by steady lending despite challenging macroeconomic conditions.

“The bank’s resilient performance was supported by the continued expansion of its core lending business, which drove revenue growth during the period,” the thrift subsidiary of listed China Banking Corp. said in a statement on Wednesday.

Net interest income rose 16% year on year to P5.49 billion in the first semester, driven by sustained loan growth in its salary loan and business loan segments.

Gross loans, excluding interbank loans, increased 8% to P158.8 billion as of June. The bank’s nonperforming loan (NPL) ratio stood at 2.9%.

“The bank has almost doubled its loan-loss reserves to cover NPLs, reflecting its prudent credit risk management and conservative provisioning policy during challenging conditions,” it said.

On the funding side, total deposits climbed 10% year on year to P199.42 billion. Total assets reached P225.58 billion at end-June, supported by a customer base of more than 1.2 million. The figures underscore the role thrift banks play in extending consumer and small-business financing while gathering low-cost deposits from a broad retail base.

As of end-June, CBS had 190 branches, 33 Automatic Payroll Deduction lending centers, and 65 branch lite units (BLUs). During the first semester, it opened five new branches and converted 10 BLUs into full-service branches.

“Our disciplined approach to lending has kept our portfolio sound and strong amid prevailing global geopolitical uncertainties and their impact on Philippine economic growth, inflation, and other factors. We will continue to grow our lending business in a prudential manner,” CBS President James Christian T. Dee said.

“There are still unbanked communities all around the Philippines. The current challenging conditions are tough, but we know from experience that Filipinos are tougher. Consumers and entrepreneurs alike need banking services to support their families and their businesses, and we want to be there for them. Our expansion plans will continue,” CBS Senior-Vice-President and Retail Banking Group Head Jan Nikolai M. Lim said.

The bank said it will continue expanding its higher-yielding loan portfolio, maintain strong asset quality, grow its current and savings account deposit base, deepen customer relationships, and improve operational efficiency through continued investments in its branch network and digital platforms. — Aaron Michael C. Sy