Chinabank declares P5.9 billion cash dividends

April 19, 2024 | 12:00am

MANILA, Philippines — Sy-led China Banking Corp. will reward its shareholders with a record P5.9 billion in dividend payments, 16 percent higher compared to last year, the bank said  yesterday.

The amount represents 27 percent of the bank’s net income last year. It translates to a cash dividend yield of six percent based on the bank’s P36.75 closing stock price as of April 17.

Chinabank said its board of directors approved the declaration of a P1.2 per common share in regular cash dividends and an additional P1 per share in special cash dividend for shareholders on record as of May 3.

The bank has set the payment on
May 16.

“The dividend declaration reflects Chinabank’s commitment to consistently providing good shareholder returns while investing in the continued growth of its business,” Chinabank said.

Last year, the bank paid its eligible shareholders a total of P5.1 billion in cash dividends, P1 per share in regular cash dividend and P0.90 per share in special cash dividend.

Chinabank saw its net income increase by 15 percent to hit an all-time high of P22 billion in 2023, boosted by higher core business revenues.

The higher earnings booked by the bank translated to a return on equity of 15.5 percent and return on assets of 1.6 percent.

The bank’s net interest income grew by 17 percent to P53.5 billion as the strong growth in loans and investments offset the significantly higher interest expense. Its net interest margin was maintained at 4.2 percent.

Earlier this week, Moodys’ Investors’ Service affirmed Chinabank’s Baa2 deposit and issuer ratings – a notch above investment grade. The bank was likewise given a stable outlook.

This is due to the bank’s “strong capitalization and profitability, as well as its modest deposit franchise, offset by its strong level of liquidity.”