China Bank Savings Inc. (CBS), the country’s second-largest thrift lender by assets, nearly doubled its loan-loss reserves in the first half of 2026, bolstering its buffers against potential bad debts while maintaining a non-performing loan (NPL) ratio below the national industry benchmark.
The bank attributed the aggressive provisioning to a conservative credit policy and disciplined risk management designed to navigate market volatility. CBS reported a stable asset quality with an NPL ratio of roughly 2.9% for the first six months of the year, comfortably below the broader banking sector’s 3.29% average.
Despite setting aside larger provisions, CBS matched its prior-year performance by generating ₱1.2 billion in net income for the period, demonstrating balance-sheet resilience despite persistent global geopolitical headwinds and economic challenges.
Commenting on the financial results, CBS President James Christian Dee highlighted the stability of the bank’s credit operations:
“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.”
Dee added that the lender plans to “continue to grow our lending business in a prudential manner.”
Top-line revenues benefited from a 16% rise in net interest income, which reached ₱5.5 billion. Growth was supported by an 8% expansion in the gross loan portfolio to ₱158.8 billion, spurred by sustained demand for corporate and salary loans. Deposit mobilization also expanded, with total deposits growing 10% year-on-year to ₱199.4 billion to supply steady liquidity for ongoing credit growth.
During the same period, CBS enlarged its physical footprint by commissioning five new branches and converting 10 branch-lite units into full-service locations, bringing its total network to 190 branches and 33 APD Lending Centers.
Addressing the physical expansion, Senior Vice President and Retail Banking Group Head Jan Nikolai Lim emphasized the bank’s focus on financial inclusion:
“There are still unbanked communities all around the Philippines. The current challenging conditions are tough, but we know from experience that Filipinos are tougher.”
Lim reinforced that widening access to financial services remains crucial for households and small businesses across the country.
Looking ahead, CBS plans to maintain its trajectory by prioritizing higher-yielding loan segments and driving operational efficiency through concurrent investments in its physical distribution network and digital platforms.