MANILA - Sy-owned China Banking Corp. (China Bank) reported a net income of P3.21 billion for the first 9 months of 2009, 40.7% higher than last year's P2.28 billion.

In a disclosure to the Philippine Stock Exchange on Friday, China Bank said the growth was driven mainly by a 22.8% increase in revenues to P13.02 billion.

"With our continued focus on improving service, strengthening our balance sheet, and effective management of risks, we were able to sustain our growth momentum for the year. Our double-digit growth in underpinned by our commitment to consistently deliver strong shareholder value," China Bank executive vice president and chief operating officer Ricardo Chua said.

The bank's net interest revenues jumped 29.5% on the back of stronger lending and improved margins arising from continued growth in low-cost deposits.

Non-interest revenues, meanwhile, rose 68.4% on higher trading and foreign exchange gains as well as revenues from disposal of acquired assets.

China Bank's total assets increased 2.8% to P214.39 billion during the 9-month period from the December 2008 level.

To further strengthen its balance sheet, provisions for probable credit losses were more than doubled to P493 million, bringing the bank's loan loss coverage ratio to 112.21% from 82.55% last year.

Total deposits reached P174.04 billion, while average loans were up 12% from the same period last year on higher loan volume to corporate and consumer sectors.