Annual Report 2014
Total Page：16
File Type：pdf, Size：1020Kb
ANNUAL REPORT 2014 CHINA BANKING CORPORATION China Bank Building 8745 Paseo de Roxas corner Villar Street Makati City 1226, Philippines www.chinabank.ph China Banking Corporation (China Bank), stock symbol CHIB, was incorporated on July 20, 1920 and commenced business on August 16, 1920 as the first privately-owned commercial bank in the Philippines, ANNUAL STOCKHOLDERS’ MEETING catering initially to the needs of Chinese-Filipino businessmen. It played May 7, 2015, Thursday, 4:00 p.m. a key role in post-World War II reconstruction and economic recovery Penthouse, China Bank Building through its support to businesses and entrepreneurs in critical industries. 8745 Paseo de Roxas corner Villar Street China Bank was listed on the local stock exchange by 1947, and acquired Makati City 1226, Philippines its universal banking license in 1991. The Bank serves the corporate, commercial, middle, and retail markets with a wide range of SHAREHOLDER SERVICES domestic and international banking services. It is one of the For inquiries or concerns regarding dividend payments, account status, We welcome letters or all such communications on matters pertaining largest universal banks in the country in terms of assets, change of address or lost or damaged stock certificates, please get in touch to the management of the Bank, stockholders’ rights, or any other bank- with: related issues of importance. Stockholders who wish to communicate with capital base, and market value. any or all of the members of the China Bank Board of Directors may send letters to: Stocks and External Relations Office of the Corporate Secretary Atty. Corazon I. Morando China Banking Corporation Vice President and Corporate Secretary 11/F China Bank Building China Banking Corporation 8745 Paseo de Roxas corner Villar St. 11/F China Bank Building Makati City 1226, Philippines 8745 Paseo de Roxas corner Villar St. Makati City 1226, Philippines Contact persons: Email: [email protected] Atty. Leilani B. Elarmo Atty. Julius L. Danas Pamela D. Pablo INVESTOR INQUIRIES Tel. No.: (+632) 885-5133 We welcome inquiries from investors, analysts, and the financial community. Fax No.: (+632) 885-5135 For information about the developments Email: [email protected] at China Bank, please contact: [email protected] [email protected] Alexander C. Escucha Senior Vice President and Head Stock Transfer Service, Inc. Investor & Corporate Relations Group Unit 34-D Rufino Pacific Tower China Banking Corporation 6784 Ayala Avenue 28/F BDO Equitable Tower Makati City 1226, Philippines 8751 Paseo de Roxas Makati City 1226, Philippines Contact persons: Tel. No.: (+632) 885-5601 Antonio M. Laviña Email: [email protected] Contents Ricardo D. Regala, Jr. Website: www.chinabank.ph 2 Performance Highlights Tel. No.: (+632) 403-2410; 403-2412; 403-9853 Fax No.: (+632) 403-2414 4 Message to Stockholders 10 Operating Highlights 22 Human Resources 28 Corporate Social Responsibility 30 Consumer Protection Post-consumer Recovered Fiber 32 Corporate Governance About The Cover 54 Board of Directors The cover of this China Bank Annual Report is printed on Radiance New Evolution White 280gsm. Radiance is an 58 Management Committee uncoated felt-marked paper that captures the exrtraordinary printing definition and effects of a coated paper, The bridge represents both certified by the Forest Stewardship Council (FSC) which promotes environmentally appropriate, socially beneficial, and China Bank’s historical track record 60 Senior Officers economically viable management of the world’s forest. and legacy of enduring partnerships 63 Management Directory with generations of customers and its 64 Financial Statements The main report is printed on Limited Edition Fine Smooth 90gsm, 30% Recycled waste and FSC certified fibres. Made trajectory of future growth serving 168 Branches carbon neutral, Limited Edition Fine Smooth is produced with the use of 100% wind-generated electricity. All pulps are made elemental chlorine free helping to reduce harmful by-products. more customers in more areas, with 178 Off-Branch ATM Locations more products and services. The bridge 191 Business Centers The Financial Statement of this report is printed on FSC certified 9 Lives Recycled Offset 100% Recycled 80gsm that is also represents the Bank’s timeless role 182 Subsidiaries and Affiliates made from 100% post consumer fiber. as a financial intermediary between 192 Products and Services savers and borrowers — entrepreneurs to grow their businesses and families to fulfill their dreams. 1 Vision Drawing strength from our rich history, we will be the best, most admired, and innovative financial services institution, partnering with our customers, employees, and shareholders in wealth creation. Mission We will be a leading provider of quality services consistently delivered to institutions, entrepreneurs, and individuals, here and abroad, to meet their financial needs and exceed rising expectations. We will be a primary catalyst in the creation of wealth for our customers, driven by a desire to help them succeed, through a highly motivated team of competent and empowered professionals, guided by in-depth knowledge of their needs and supported by leading-edge technology. We will maintain the highest ethical standards, sense of responsibility and fairness with respect to our customers, employees, shareholders, and the communities we serve. Core Values • Integrity • High Performance Standards • Commitment to Quality • Customer Service Focus • Concern for People • Efficiency • Resourcefulness/Initiative 2 CHINA BANK ANNUAL REPORT 2014 PERFORMANCE HIGHLIGHTS NET INCOME RETURN ON EQUITY TOTAL RESOURCES TOTAL DEPOSITS In Billion Pesos In % In Billion Pesos In Billion Pesos 6 18 500 5 15 400 4 12 471 5.0 5.1 5.0 5.1 5.1 300 414 15.37 3 9 399 354 13.81 200 324 2 12.22 6 11.31 257 272 9.90 100 263 213 1 3 216 0 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 STOCKHOLDERS’ EQUITY TOTAL CAR EARNINGS PER SHARE In Billion Pesos In % In Pesos 60 20 4 50 16 57 3 40 12 45 43 3.25 30 3.21 2 3.27 16.34 16.26 40 3.22 3.08 16.00 15.39 14.88 8 20 35 1 10 4 0 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CASH DIVIDENDS PAID BRANCHES ATM In Billion Pesos STOCK DIVIDENDS PAID In Billion Pesos 2.0 700 600 1.5 500 661 1.59 400 561 1.0 1.56 511 1.42 470 1.29 1.27 300 475 1.30 431 1.18 1.17 1.07 0.98 200 0.5 367 316 293 100 269 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 MARKET CAPITALIZATION In Billion Pesos 90 75 84 60 81 71 45 47 30 47 15 0 2010 2011 2012 2013 2014 PERFORMANCE HIGHLIGHTS 3 2012 2013 2014 For the Year (In Thousand Pesos) Net Interest Income 8,062,341 9,935,991 14,088,747 Non-Interest Income 5,793,615 5,160,592 4,759,276 Operating Income 13,855,956 15,096,582 18,848,023 Provision for Impairment & Credit Losses 236,756 414,336 440,901 Operating Expenses 8,193,901 8,907,262 11,728,645 Net Income Attributable to Equity Holders of the Parent Bank 5,018,197 5,103,258 5,116,397 At Year-End (In Thousand Pesos) Total Resources 324,160,047 413,697,923 470,939,997 Loan Portfolio (Net) 190,100,306 220,540,903 290,418,730 Investment Securities 66,431,353 66,921,227 59,026,895 Total Deposits 271,977,240 354,268,203 399,301,544 Stockholders’ Equity 42,738,205 45,399,699 56,566,049 Number of Branches 316 367 470 Number of ATMs 511 561 661 Number of Employees 5,198 5,594 7,245 Key Performance Indicators (in %) Profitability Return on Average Equity 12.22 11.31 9.90 Return on Average Assets 1.71 1.45 1.12 Net Interest Margin 2.90 2.98 3.30 Cost to Income Ratio 59.14 59.00 62.23 Liquidity Liquid Assets to Total Assets 36.47 42.80 32.91 Loans to Deposit Ratio 69.90 62.25 72.73 Asset Quality Non-Performing Loans Ratio 2.55 1.99 2.24 NPL Cover 134.88 146.62 101.25 Capitalization Capital Adequacy Ratio (Tier 1) 15.15 14.50 13.95 Capital Adequacy Ratio (Total CAR) 16.00 15.39 14.88 Shareholder Information Market Value Market Price Per Share (In Pesos) 45.061/ 53.561/ 47.00 Market Capitalization (In Thousand Pesos) 70,863,933 84,232,038 80,671,473 Valuation Earnings Per Share (In Pesos) 3.221/ 3.271/ 3.08 Book Value Per Share (In Pesos) 27.391/ 29.091/ 34.03 Price to Book Ratio (x) 1.65 1.84 1.38 Dividends Cash Dividends Paid (In Thousand Pesos) 1,415,852 1,557,449 1,589,272 Cash Dividends Per Share (In Pesos) 1.2 1.2 1.0 Cash Payout Ratio (In %) 27.89 31.04 31.14 Cash Dividend Yield (In %) 2.66 2.24 2.13 Stock Dividends Paid (In Thousand Pesos) 1,179,976 1,297,874 1,271,428 Stock Dividends Per Share (in %) 10 10 8 1/ Restated to show the cumulative effects of stock rights and stock dividends. 4 CHINA BANK ANNUAL REPORT 2014 HANS T. SY GILBERT U. DEE RICARDO R. CHUA Chairman of the Board Vice Chairman of the Board President and Chief Executive Officer MESSAGE TO STOCKHOLDERS 5 DEAR FELLOW SHAREHOLDERS, • For the third straight year, China countries and contributed to the rising We are delighted to report that Bank was a PSE Bell Awardee for volatility in the financial and cross-border 2014 was a good year for China Corporate Governance.