China Banking Corporation, the country’s first privately-owned commercial bank, posted an audited consolidated net income of P5.03 billion for 2012, slightly higher than the P5.01 billion earned in 2011.

In a disclosure to the Philippine Stock Exchange, China Bank said last year’s profit translates to a return on equity of 12.39 percent and return on assets of 1.72 percent.

The robust income was fueled by a 29 percent increase in loans to P198 billion, which grew 50 percent faster than the industry.

Lending vigorously grew across all market segments — up 36 percent in commercial, 28 percent in consumer and 27 percent in corporate loans — cushioning the impact of lower yields and thinning margins.

Profits were also boosted by hefty trading and securities gains, expanding by 98.6 percent to P2.92 billion.

The Bank also became more active in the investment banking arena with participation in numerous deals, most recently acting as the sole arranger for the US$ 140-million Cebu-Pacific dollar-denominated term loan deal.

China Bank’s 2012 performance was underpinned by marked improvements in its balance sheet. Total assets increased by 23.4 percent to P323.65 billion, while total deposits improved by 25.8 percent to P271.98 billion.

Close monitoring and tighter controls led to a 10.5% drop in the Bank’s non-performing loans (NPLs) to P5.03 billion, reducing its NPL ratio to 2.07 percent and improving its loan loss coverage ratio to 148.7 percent, one of the best in the industry.

The Bank maintained its solid financial position as capital funds increased to P42.29 billion, translating to a Tier 1 capital adequacy ratio of 15.15 percent (Total CAR of 16 percent).

China Bank’s branch network rose to 316 as 15 branches for the main bank and 8 for the savings bank were opened last year. It has over 300 branches nationwide (including branches of China Bank Savings) which it plans to expand to 400 by 2014.