2023 ANNUAL FINANCIAL AND SUSTAINABILITY REPORTAbout the Cover
FOCUSED ON YOU is not simply a tagline. It’s a commitment to ourcustomers that we have your best interests in mind and that yourneeds come first. It’s a promise that the dedicated and hardworking
Chinabankers live up to everyday, embodied in our actions, and madereal by the lives we touch and the dreams we help come true.
By sharpening our customer focus, we are driving the virtuous cycleof value creation for our customers, employees, shareholders, and all
our stakeholders.
For the last 103 years, we’ve helped tycoons when they were justnewbies, billionaires when they only had a billion to one shot.
The attention we gave to them is the same one we will give to you nomatter who you are. Because we never see whether you’re big or small.
We only see the size of your dreams.
You may be starting a small business, building a home, or simply
pursuing a passion; whatever it is, you came to the right bank.
Because at Chinabank, we’re always focused on you.

About theReport2-3, 3-1

The Chinabank 2023 Annual Financial & Sustainability Report highlights the material
financial and non-financial activities of the Chinabank Group for the period
January 1 to December 31, 2023.
The report has been prepared in line with the standards and/or guidelines
provided by the Securities and Exchange Commission, Bangko Sentral ng Pilipinas,
Sustainability Accounting Standards Board, ASEAN Corporate Governance
Scorecard and in accordance with the GRI Sustainability Reporting Standards.
The Chinabank Board of Directors is ultimately responsible for the Bank's
sustainability while the Management is responsible for the preparation and fairpresentation of the sustainability report for the year ended December 31, 2023,
in accordance with the sustainability reporting framework mentioned above.
The Board of Directors reviews and approves the sustainability-related statements,and submits the same to the stockholders.
We welcome any comments or questions. Please send themto investor-relations@chinabank.ph.

2

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTTable of

Who We Are

4

Our Story So Far

7

Message to Stakeholders

8

Financial Highlights

12

Operational Highlights

14

Sustainability Highlights

30

Corporate Governance

64

Board of Directors

90Management Committee

96

98

Contents

Management Team

100 Recent Awards
101 Financial Statements
128 Branches
152 Subsidiaries and Affiliate
156 Products and Services
163 Topic Boundary GRI Index
168 Investor Information

C HI NA BANK I NG COR P O R AT I O N

3We AreWho

2-1, 2-2, 2-6, 2-23

China Banking Corporation (Chinabank) is the fourth largest private
universal bank in the Philippines. Building strong relationships since1920, we are focused on helping people and businesses succeed.
Eyeing a better future for all, we are committed to operating ethicallyand responsibly to create long-term value for all our stakeholders.

Headquarters:
Makati City, Philippines648

10,662

Branches

2.6

Employees*

1,069

millioncustomers

ATMs

P1.5

Listed on thePhilippine
Stock Exchange
Ticker Symbol"CHIB"

trillionassetsP83

billionmarketcapitalization* Permanent employees4

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTMember of the
SM Group, oneof the largest
conglomerates
in the Philippines

What

We Offer

We support individuals, small and middle market businesses,
and large corporations with our full service platform.

RELATIONSHIPBANKING

RetailBanking
Business

Institutional
Banking

Consumer
Banking

SAVINGS BANK &BANCASSURANCEFINANCIAL
MARKETS

Chinabank
Savings

Treasury
Trust & AssetManagement

Loans

Corporate Loans

Housing Loans

Deposits

Commercial
Loans

Auto Loans
Credit Cards

MarketSales

SME Loans
Consumer Loans

Remittance
ChinabankSecurities
WealthManagement

ChinabankInsurance
Brokers

Deposits
Chinabank
CapitalMulti-purpose
Loans

Manulife
ChinabankLife

Housing

Auto

Automatic
Payroll
Deduction(APD)

Personal

C HI NA BANK I NG COR P O R AT I O N

5

Our

Compass

Our vision, mission, and core values underpin the way we
do business and how we interact with our stakeholders.

MISSION

We will be a leading
provider of quality services
consistently delivered to
institutions, entrepreneurs,
and individuals here andabroad, to meet theirfinancial needs and exceed
their rising expectations.
We will be a primary catalyst
in the creation of wealth forour customers, driven by adesire to help them succeed,through a highly engaged
team of competent andempowered professionals,
guided by in-depth
knowledge of their needs
and supported by leadingedge technology.
We will maintain thehighest ethical standards,
sense of responsibility, andfairness with respect to ourcustomers, employees,
shareholders, and thecommunities we serve.

Drawing strength fromour rich history, we will be
the best, most admired,and innovative financial
services institution,
partnering with ourcustomers, employees,
and shareholders in wealthand value creation.

•
•
•
•
•
•
•

6

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Integrity
High PerformanceStandards
Commitment to
QualityConcern for People
Efficiency
Resourcefulness/
Initiative
Customer Service Focus

VISION

CORE VALUESOur

Story So Far

We are proud to have stood the test of time, grateful for the trustand support that have kept us going, and confident in the future
as we continue on our journey to the next century.
Opened for business on August 16,1920—the first privately owned local commercialbank in the Philippines

Became one of the firstcompanies to be listed on the
Manila Stock Exchange

Reopened for business after being shut down by theJapanese Military, lending to key industries for post-war
reconstruction and long- term development

Became the first bank in Southeast
Asia to process deposits on-line,
using the IBM 360

Became a universal bankAcquired Manila Bank and renamed it
Chinabank Savings; entered into abancassurance joint venture with Manulife toform Manulife Chinabank Life Assurance Corp.

Acquired Pampanga-based Unity BankEntered the credit card business and launched
Chinabank MasterCard; rolled out a new corebanking system; incorporated Chinabank Capital

Acquired Plantersbank andmerged it with Chinabank Savings

Acquired ATC Securities andrenamed it Chinabank Securities

Signed US$150 million Green Bond issuancefor climate-smart projects with International
Finance Corporation (IFC) as sole investor

Raised P30 billion via maiden
issue of fixed-rate retail bonds

Marked centennial with P1 trillion in assets
and P100 billion in capitalInaugurated the restored Chinabank Binondo
Business Center and the new Chinabank Museum;
emerged as Best Bank in the Philippines
and among the strongest banks in the country
and in the Asia Pacific region

Became the fourth largest private universalbank in the country in terms of assets;
breached the trillion-peso mark in deposits

Won the highest governanceaward for the second time,
the Five Golden Arrows,
and named 2023 Employerof the Year

C HI NA BANK I NG COR P O R AT I O N

7Message to

Stakeholders

2-6, 2-22, 3-3

GILBERT U. DEE
Vice Chairman

8

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

HANS T. SY
Chairman

ROMEO D. UYAN, JR.
President & CEO

To our fellow stakeholders:Through the decades, Chinabank has been evolving and transforming for the better. As we uphold
our timeless values and long and proud heritage, your bank stays agile to be able to ride the highs
and lows of a changing business landscape with strength and resilience, and more importantly,
to remain well positioned to serve future generations.
Throughout our transformation, we never lose sight of what’s truly important: to deliver on ourcommitments to you—our customers, employees, shareholders, and all our stakeholders.
Backdrop for 2023

We redoubled efforts to enhance our customer
propositions and improve our execution across
Global economic growth is estimated to have slowed the Chinabank Group to maintain our position
to 3.1% amid sluggish global trade, mounting
among the top four banks in the country. Total
geo-political tensions, and the tightest financial
assets hit P1.5 trillion, up 11%, with solid key asset
conditions in decades. On the upside, the risk of aquality metrics: better-than-industry NPL ratio of
global recession has receded, largely because of the 2.5% and NPL cover of 104%. Total equity stood at
U.S. economy’s strength.
P150 billion, up 12%, with capital ratios well above
the regulatory minimum: 15.3% common equity tier
While the Philippines likewise experienced a broad- 1 ratio and 16.1% total capital adequacy ratio.
based economic slowdown during the year, thecountry emerged as the top performer in the region As we optimized our strong balance sheet towith a gross domestic product (GDP) growth of 5.6%. improve overall financial performance, we continued
This is despite headwinds of persistently elevatedto support our customers’ ambitions and help fuelinflation and a high interest rate environment.
the real economy. In 2023, your bank grew deposits
to P1.2 trillion, lent P791 billion to business andInflation hit 6%, reducing Filipinos’ purchasing power consumers, and raised P544 billion in capital for theand prompting the Bangko Sentral ng Pilipinas (BSP) development projects of the government and theto continue hiking monetary policy with an additional growth plans of companies.
100 bps during the year. Fortunately, the main
engines of GDP growth—household consumption
With strong capitalization, profitability, and liquidity,on the demand side and services on the supply
Moody's Investors Service affirmed Chinabank's
side—proved to be resilient and offset weakness
investment grade credit rating of "Baa2" within other segments such as government spending,"Stable" outlook.
which nearly stagnated. Consumption activities
were also supported by a strong labor market, with
Meanwhile, Chinabank’s stock price (ticker symbol:
unemployment rates reaching record-lows andCHIB) also improved in 2023, capping the year at
more Filipinos securing quality jobs.
P30.85, up 12.4%, despite the challenging year forthe local stock market. CHIB outperformed both the
The subdued global environment took a toll on
financial sector index and the main Philippine Stockthe Philippines’ export performance, manufacturing
Exchange Index, which rallied by 5.7% and declined
activities, and foreign investment inflows in 2023.
by 1.8%, respectively.
The thrust to boost investor sentiment, throughmaximizing gains from liberalization reforms andYour bank’s upbeat price performance came on
easing the cost of doing business, should benefit
the heels of improving trading volume, as average
the country in 2024 and the medium term.
daily turnover improved over 70% year-on-year.
Book value per share increased by 12% to P55.82
Sustained strong growtheven after returning a total of P5.1 billion toshareholders — P1.00 per share regular cash
Backed by your trust and the dedication and tireless dividend and P0.90 per share special cash dividend
efforts of our employees, we achieved record— up 27%.
high earnings in 2023 and continued to improveshareholder returns. Consolidated net income
Our strong business results in 2023 show growthsoared to P22 billion in 2023, up 15%, on the backthat is organic, responsible, and sustainable. Weof higher core business revenues. Key profitability
navigated the challenges and pursued opportunities
metrics were among the highest in the industry at
as we helped our customers achieve their dreams
15.5% return on equity, 1.6% return on assets, andand aspirations, took care of our employees and4.2% net interest margin.
deepened our leadership bench, strengthened
our risk management and governance practices,
invested in innovation to achieve operational
C HI NA BANK I NG COR P O R AT I O N

9efficiencies and deliver better service, and madegood progress in our sustainability journey,
including the establishment of a sustainable financeframework and the completion of the Environmental& Social Risk assessment of our non-retail loan
and investments.
External recognition
We are motivated to do well, to push ourselves todo even better, and to do right by our stakeholders.
For all our efforts and hard work, the best reward
is your continued trust, but of course, the awards
are great too.
In 2023, your bank won for the second time theFive-Golden Arrow Award, the highest governancerecognition from the Institute of Corporate Directors
for publicly listed companies. Effective corporate
governance is a cornerstone of our success andresilience. Our shareholders are represented bya diverse and experienced Board of Directorsthat provides independent oversight to ensure
Chinabank delivers strong returns today andconsistently serves our stakeholders in the future.
For the first time in 30 years, the People
Management Association of the Philippines
conferred its top award to a bank, and that is
Chinabank, the 2023 Employer of the Year in
the Philippines. This award is a testament to ourcommitment to the wellbeing of our employees, tothe best practices in human resources management,
and to equality, diversity, and inclusion. Our
employees are our partners in success and we aredoing all that we can to create a welcoming andsupportive workplace where everyone is happy,
thriving, and performing at their best.
Our investment banking arm Chinabank Capitalremains as the undisputed leader in capital market
structuring and execution in the Philippines.
Chinabank Capital was named as the Best Bond
Adviser-Domestic by The Asset for the eighthconsecutive year and was recognized by The Asset,
Alpha Southeast Asia, and Finance Asia for its
involvement in landmark capital market transactionsin the country.
We were also distinguished for our innovations,for being the best partner for affluent individuals,
for having the best-managed funds, and for ouroutstanding performance in fixed-income trading,
distribution, and settlement (see operational
highlights). We are proud of these recognitions
which we all share with you. Thank you for being
our motivation to always do our utmost.

10

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

A renewed customer-focused strategy
Our customers are at the center of everything we
do. We have been shaping and redesigning thebusiness from their perspective to meet their needs
and expectations and build long-term relationships.
In 2023, process simplification, digitalization,
and automation projects to enhance customer
experience at every touchpoint were prioritized.
At the same time, we channelled more resources tobuilding a truly customer-centric culture, combining
employee training and customer relationshipmanagement to instill an ethos that places thecustomer’s needs and experiences at the forefrontof our business decisions and processes.
During the year, we embarked on key reengineering
initiatives and technology projects, in line with
our digital transformation, including Digital
3.0 to transform the way Chinabank customers
seamlessly manage their finances on the go, andCustomer 360 to integrate data from various sources
for a holistic and complete view of each customer
for hyper-personalized service and support. We also
adopted a cloud-first policy for all new systems andapplications, embracing cloud-native technologies
and migrating 80% of our on-premise virtual
machine workload to Azure cloud.
As we continue to accelerate technology adoption
for greater efficiency and accessibility and to
improve the overall customer experience, we arealso strengthening our emotional bonds with ourcustomers through the power of every connection—
our employees, our message, our brand.
In 2024, we are launching our corporate brandrefresh program with the aim of fortifying our
relationships with our core customers while
attracting a larger share of emerging segments,
as well as ensuring that our brand remains relevant
to and resonates with our target markets.
With the brand refresh, we are manifesting
Chinabank’s strong values and commitment tomaking a difference through a modernized, dynamic
visual brand identity and a compelling brandpromise of placing our customers at the heartof our business: “Focused on You.”To help us make a profound connection with the
new generation of dynamic and forward-thinking
banking customers, we signed up our first everbrand ambassador, 2023 Miss Universe Philippines
Michelle Dee who is redefining contemporary
Filipino culture on a global stage. By the time thisreport is released, our brand refresh and advertising
campaign would be in full swing. And that is why
we have decided to make our new tagline thetheme of this report.

From back-end process upgrades to reimagined
customer-facing solutions, to a new logo and whole
new campaign to connect with more customers,
exciting things are happening in your bank!
Outlook and objectives for 2024
A sustained downtrend in inflation should be a
tailwind to the economy in 2024, especially since
it would provide room for the BSP to start cutting
policy rates. However, uncertainty on the timingof monetary easing, with many economies still not
yet out of the woods on the inflation front, could
result in some volatility in financial markets in thenear term. We see inflation finally settling at 3.8%
for the full year, within the BSP's target of 2% to
4%, but may again breach the 4% high-end target
in April to July partly due to base effects. Overall,recent developments point to a better year for thePhilippine economy in 2024, with the potential toonce again be the fastest-growing economy in theregion. We project a slightly higher GDP growthat 5.8%, driven by strong household consumption
amid slowing inflation.
For Chinabank, we believe 2024 is going to be atransformative year. We are determined to bringyour bank to a new level—a highly efficient andproductive organization, strongly competitive inour chosen markets, and sharply focused on ourcustomers. We will operate, as we always have,with an eye toward the future, optimizing for thesatisfaction and loyalty of our customers andrunning our business in a balanced manner to help
bring the Philippines toward sustainable prosperityin the future.
We have set ambitious goals for the next five years:
solidify Chinabank’s position in the top 4, expand
customer base and deepen relationships, andensure stock price is aligned with performance.
To achieve these objectives, our strategies include
maximizing opportunities in margin expansion,
driving growth through digital banking, andleveraging the brand refresh to boost customer
acquisition. The focus areas of growth identified
in 2023 remain the same: deposits, loans, andfee income.
We will step-up efforts on customer acquisition,building up new-to-bank CASA (checking andsavings account), and organic CASA expansion
with promos and incentives. To expand our loan
portfolio, we will enhance our coverage of target
industries and segments, implement programs toincrease the share of consumer loans, and launcha digital platform for real-time application decision.
Digital will also play a big part in our fee income
strategy as we will roll-out platforms and solutions

to drive client onboarding and offer value-added
services to diversify revenues. At the same time,
greater synergy will be emphasized as we optimize
our vast branch network and reorganize our Retail
Banking and Consumer Banking Segments toboost cross-selling group-wide and increase thesubsidiaries' fee income contribution.
Conclusion
In the last 103 years, we have been building
Chinabank’s reach, capabilities, and market share
while contributing to the development of our nationand her people, creating employment opportunities,
and financing the growth of business and domestic
consumption.
While we take pride in our achievements, we also
remain grounded and mindful of the challenges thatlie ahead. The business landscape is evolving fast,
demanding a deep commitment to innovation andadaptation. We will continue to embrace changewith an open mind, and more importantly, to use oursize and strength to do good for society and to giveour customers more good reasons to bring us moreof their business.
Our success will be driven by our stellar executionof our plans and strategies, the strength of thebusiness fundamentals we have worked so hardto build, and the continued trust and support ofour customers, employees, shareholders, andother stakeholders.
On behalf of the Board of Directors, we thank you
for your trust and confidence in us and for being apart of Chinabank’s remarkable journey.

Sincerely,

HANS T.SY
Chairman

GILBERT U. DEE
Vice Chairman

ROMEO D. UYAN, JR.
President & CEO

C HI NA BANK I NG COR P O R AT I O N

11Financial

Highlights

2-6
Net Income

Total Resources

In PHP Bn

Stockholders’ Equity

In PHP Bn

In PHP Bn

22.0

150

1,478
135

1,330

19.1
15.1

962

119

1,112

1,036

105

96

12.1
10.1

2021

2022

2019

2023

2020

2021

2019

2022

2023

2019

1,069

1,037

2020

2022

2023

2021

ATMs

Total CAR

648

2021

15.1

15.5

2022

2023

12.1

2019

2020

2021

Branches

Market Capitalization

Cash Dividends Paid

In Percent

2023

13.6

637

2020

2022

In Percent

11.0
634

863
631

835

1,022

1,002

1,187
1,066

2021

2020

Return on Equity

ActualIn PHP Bn

2019

2023

Distribution Network

Deposits

775

2022

1,044

2020

640

2019

In PHP Bn

In PHP Bn

5.1
83
16.1
15.8
14.7

2.4

13.7

2019

12

2020

4.0

15.9

2021

2022

2023

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

2019

2.7

2.7

2020

2021

2022

2023

67

67

2019

2020

70

2021

74

2022

2023

CONSOLIDATED
2022

PARENT COMPANY

2023

2022

2023

For the Year (In Million Pesos)
Gross Revenues

67,27479,932

59,212

68,413Gross Expenses

48,13957,913

40,104

46,402Net Interest Income

45,59053,52838,833

46,292

Non-Interest Income

10,063564

10,280923

Operating Income

55,65254,091

49,11347,215

Provision for Impairment & Credit Losses

9,013

1,246

7,427

208

Operating Expenses

24,35427,037

19,716

21,698Net Income Attributable to Equity Holders of the Parent Bank

19,10822,011

19,10822,011Net Income

19,13622,018At Year End (In Million Pesos)
Total Resources

1,329,729

1,478,043

1,218,673

1,336,529

Loan Portfolio (Net)699,595

771,992

613,197

663,182

Investment Securities

412,234

504,581402,672

483,983

1,065,915

1,186,724

959,419

1,050,575

134,579

150,298

134,510150,222480

Total Deposits
Stockholders' Equity
Distribution Network and Manpower
Number of Branches

640

648

479

Number of ATMs

1,044

1,069

874

868

Number of Employees

10,237

10,662

7,478

7,593

Return on Average Equity

15.1

15.5

15.1

15.5

Return on Average Assets

1.6

1.6

1.7

1.7

Net Interest Margin

4.2

4.2

3.9

4.1

Cost-to-Income Ratio

44

50

40

46

Liquid Assets to Total Assets

44

45

46

46

Loans (net) to Deposit Ratio

66

65

64

63

Key Performance Indicators (In %)Profitability

Liquidity

Asset Quality
Gross Non-Performing Loans (NPL) Ratio

2.3

2.5

2.0

2.4

NPL Cover

123

104

136

105

Common Equity Tier 1 Ratio (CET 1/Tier 1)

15.1

15.3

15.1

15.3

Total Capital Adequacy Ratio (CAR)

15.9

16.1

15.9

16.2

Capitalization

Shareholder Information
Market Value
Market Price Per Share (In Pesos)

27.45

30.85

Market Capitalization (In Million Pesos)

73,87683,028Valuation
Earnings Per Share (In Pesos)

7.1

8.2

Book Value Per Share (In Pesos)

50.0

55.8

Price to Book Ratio (X)

0.5

0.6

Price to Earnings Ratio (X)

3.9

3.8

Cash Dividends Paid (In Million Pesos)

4,037

5,113

Cash Dividends Per Share (In Pesos)

1.50

1.90

Dividends

Cash Payout Ratio (In %)27

27

Cash Dividend Yield (In %)

5.6

6.2

C HI NA BANK I NG COR P O R AT I O N

13OPERATIONAL HIGHLIGHTS

Focused on ourCustomers

With a deep understanding of our clients’ financial needs
gained from over a century of building relationships andadvanced customer insights through modern data analytics,
we engage and serve each retail and business client,offering personalized service, solutions, and advice to help
them achieve their financial goals.

14

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTGrowing for and withour customers
In 2023, the Philippine economy continued to reboundand most people and businesses have recovered fromthe impact of the pandemic. We responded to the morevigorous demand for financial services by being moreclient-centric, bringing to bear all that the ChinabankGroup has to serve our customers well and help them
thrive today and in the future.
With our customers’ needs and expectations in mind, we
kept on enhancing, developing, and broadening every
aspect of our operations—infrastructure, organizational
structure, people, products, systems, and processes.
We reviewed our current product suite, operatingprocedures, and policies and identified gaps and pain
points, adding new features, making small adjustments, or
significantly re-engineering as necessary to create bettersynergies across the enterprise and enhance customer
experience. We also maintained our ongoing dialogue withour customers around their financial health, their goals, andhow we can help.
Our sharpened customer focus enabled us to deepen
existing relationships and gain new ones. We closed theyear with 2.6 million customers, including over 200,000
new relationships in 2023. Total deposits increased by
11% year-on-year to P1.2 trillion, nearly half of which are
Checking and Savings Accounts. Our loan portfolio grewby 10% to P791 billion, driven by strong demand acrossclient segments.

2.6 million
customers

P1.2 trillion
deposits

Creating connections, building
relationships. On the ground, inthe cloud, and across the ChinabankGroup, we work hard to forge deeper
connections with our customers and build
lasting relationships with them. Driven
by our culture of service excellenceand powered by a comprehensive
360-degree view of our customers, wefind out and understand what matters toeach customer, then offer personalized
strategies that address their specificneeds, and regularly engage with them toknow how we can serve them better.

P791 billion
loans

C HI NA BANK I NG COR P O R AT I O N

15

OPERATIONAL HIGHLIGHTS

Blending high touchand high tech
Despite the growing shift towards self-service, our customers
still seek face-to-face interactions. Thus, in 2023, we continued
to refine our omnichannel approach, combining the high-touch
warmth of personalized service with the high-tech efficiency
of automation for a seamless customer experience in-branch
and online.
Despite the continued shift from over-the-counter to digitaltransactions, our brick and mortar network—648 branches and 110
wealth management offices, consumer banking centers, lending
centers, and branch lites—remains crucial in establishing local
presence and reinforcing customer trust and loyalty.
During the year, we expanded our physical touchpoints with eight
new branches and 25 more ATMs, at the same time, we sustained
efforts to optimize our nationwide footprint and enhance ourhuman and digital capabilities to drive continuous improvement
and identify simpler and more efficient ways of working andserving our customers.

Over-all Satisfaction

2022

2023

97%

98%

*Branch Personnel
Queue time

96%

98%

Account Opening

97%

98%

Deposit/Withdrawal

97%

98%

Branch Premises

96%

98%

ATM Services

97%

98%

Security Guards

97%

98%

*newly-added attribute (Aug 2023)

16

98%

We added more than 1,328
highly qualified bankers toour branches and financial
centers, bringing our branchteam to over 7,386-strong.
Well trained in banking
operations, marketing, andcustomer service, our branchpersonnel are delivering greatcustomer experiences, asevidenced by the 98% scorein our 2023 Branch Customer
Satisfaction Survey.

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

648

branches
480 Chinabank
168 CBS18

Chinabank Wealth
Offices andConsumer Banking
Centers

92

CBS lending centersand branch lites

To meet our customers’ growing demand for fast, convenient,and secure banking anytime, anywhere, we implemented
enhancements like instant credit card issuance and credit
card activation via SMS, as well as client-facing application
upgrades on InstaPay and our payment gateway. We arealso strengthening our fraud management capabilities withthe ongoing deployment of a fraud management system toprevent, detect and mitigate fraud efficiently and effectively.
Meanwhile, processes, systems, and technologies underlying
and comprising our overall IT architecture are being overhauled
as part of our ongoing digital transformation (see more details
on pages 50 to 53).
Digital and e-banking transactions accounted for 70% of totaltransactions in 2023. The value of retail digital transactions
jumped 33% to P131 billion. Enrollment in our award-winning
Chinabank Mobile grew by 27%. With 514,000 users,
it accounted for 42% of the total retail transactions.

70%

share of digital& e-banking
to totaltransactions

Putting customers front and center.
Backbase, the global leader inengagement banking platform, named
Chinabank as The Big Shift Championof the Year. The award recognizes our
successful transition from conventional toengagement banking, making customercentricity, multi-channel interaction, andpersonalized products and services the
key drivers of our digital transformation.

514,000

Chinabank Mobile
users

C HI NA BANK I NG COR P O R AT I O N

17

OPERATIONAL HIGHLIGHTS

Supporting customers
in their financial journey
We work hard to be the best bank for our customers. Fromsaving and investing, to protecting lives and assets against
unforeseen events, to building wealth and creating a legacy,
we support our clients and stand by them every step of theway as their needs and aspirations evolve.
For new-to-bank customers, our digital account opening apps
Chinabank START and CBS Go make account ownership easy andaffordable. With the apps’ user-friendly interface and simple accountopening requirements, over 42,000 new customers were digitally
onboarded in 2023.
For OFWs and their families, we offer fast, safe, and affordable
remittance services, including the zero opening and maintainingbalance OKS Account. In 2023, we continued to expand ourinternational remittance network to serve Filipinos anywhere in
the world. Our partners now include Singapore’s SingX as wellas Malaysia’s Mobile Money and Thailand’s DeeMoney via the
RippleNet platform, a globally recognized cross-border payment
solution using blockchain technology. Utilizing Ripple’s ODL (ondemand liquidity) solution, we are able to process instant crossborder payments without costly pre-funding.
We also launched a promo to encourage opening an OKS Accountthrough Chinabank START. The promo and our year-round predeparture orientation seminars for OFWs pushed the number ofaccountholders to grow by 15% for the US Dollar-denominated OKS
Account and 5% for the Peso-denominated OKS Account.
For customers traveling abroad, they can visit Chinabankbranches in Metro Manila to purchase US Dollar, Singapore
Dollar, Chinese Yuan or Renminbi, Euro, Japanese Yen, andKorean Won at competitive foreign exchange rates. The foreign
currencies may be paid for in cash or via account debit in theequivalent Philippine Pesos. Even in this age of credit cards anddigital payments, carrying cash in the currency of the country ofdestination makes traveling easier, especially when paying forsmall items or making purchases at cash-only establishments.

+15%

OKS USDaccountholders+5%

OKS PHP
accountholders

18

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

+55%

PHP fixed income
sales

+58%

USD fixed
income sales

As our customers’ needs expand from banking
transactions to self-directed investments andmanaged investment portfolios, we connect themwith insights, tools, and opportunities across fixedincome, equities, and insurance.
Empowered by cutting-edge technology, deep
customer insight, and real-time market data, ourteam of highly experienced traders, analysts,
and relationship managers focus on helping ourcustomers—whether seasoned investors or juststarting out—make more informed choices based on
their goals and risk appetite.
To help customers better understand financial
and estate planning, as well as the economic
developments that have an impact on investments,
we conduct learning sessions and market outlook
forums year-round.
During the year, our information campaign on
investing, including conducting webinars andbriefings to guide existing and potential investors
on the features, benefits, and risks, bolstereddemand for treasury products. We saw more of
our customers invest in Peso-denominated and US
Dollar-denominated fixed income securities, withsales surging by 55% to P797 billion and by 58% to$320 million, respectively.

Achieving wider retail distribution of fixed-income
securities. The Philippine Dealing System Holdings
Corp. and Subsidiaries (PDS) Group recognized
Chinabank for outstanding performance in trading,
distribution, and settlement activities in 2023. Our
Financial Markets team bagged five wins at the 19th
PDS Annual Awards: Cesar E.A. Virata Award—thehighest distinction in the bank category, Top Brokering
Participant for Retail Transactions, Top Fixed-Income
Dealing Participant, Top 2 Securities Market Maker,
and Top 3 Fixed-Income Brokering Participant.

C HI NA BANK I NG COR P O R AT I O N

19

OPERATIONAL HIGHLIGHTS

We offer our individual and business customers theadvantage of a competent trustee to manage theirinvestment portfolios, estates, and retirement funds,
as well as the benefit of a reliable escrow agent forbusiness transactions involving large sums of money.
For self-directed investors, the power to manage
their unit investment trust fund (UITF) holdings is in
their hands with Chinabank Mobile.
The assets under management (AUM) of our Trustand Asset Management Group grew by 27% in 2023
to P282 billion, the 4th largest among privatelyowned local banks in the country.
We welcomed more investors as the number of new
trust accounts opened during the year increased
by 18%. Overall, the total number of trust accounts
grew by 11%.
Meanwhile, enrollments of UITF accounts in
Chinabank Mobile increased by 51%, whiletransaction count surged by 140%, with net
subscriptions of P28 million.

Delivering the best returns. The CFA Society
Philippines named Chinabank Dollar Fund andChinabank Intermediate Fixed-Income Fund as
the Best Managed Funds for 2023 for delivering
the highest risk-adjusted returns. This is the 7thtime that Chinabank Dollar Fund has bested
other funds in the Long-Term Bond (Dollar FVPL)
category, first earning the distinction in 2016.
For Chinabank Intermediate Fixed-Income Fund,
this is its second consecutive win in the MediumTerm Bond (Peso FVPL) category. In addition, asof end-December 2023, 8 out of 11 Chinabank
UITFs were among the highest-yielding funds
in the industry in terms of one year net returns,
according to www.uitf.com.ph.

P282 billion
AUM

+18%

new trust accounts

20

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTIt was a very challenging year for the equities
market as it grappled with high volatility driven by
prevailing market risks such as the US debt ceiling
crisis, the upside risks related to inflation due toincrease in food prices and the inflationary impactof unexpected wage hikes, reignited geopoliticaltensions such as concerns between Ukraine
and Russia, and governance issues among listedcompanies, to name a few.
On the last trading day of 2023, the bellwether
Philippine Stock Exchange index (PSEi) closed at
6,450.04, down by 116.35 points or 1.77% from2022. Daily average volume turnover was also tellingof the lethargic market as it dropped by 18.4% toP4.83 billion from the year-ago’s P5.92 billion.
Amid the weak environment, our stock brokeragebusiness, Chinabank Securities, redoubled efforts
to take advantage of the various preferred sharesissued by blue chip companies during the year suchas Ayala Corporation, AC Energy Corporation, Petron
Corporation and San Miguel Corporation. These
generally offered attractive dividend yields, withsome even exceeding 8% p.a., gross, that enticed
investors to lock in their funds in these quasi-debt
equity instruments. Clients were also encouraged
to invest in REITs or real estate investment trusts
whose market prices have become more affordable
while also providing steady cash flow from quarterly
dividend payments for effectively higher returns. To
participate in these issues, the number of clients grewby 10%, of which more than half went to our digitalstock trading platforms, ChinaBankSec Online andChinaBankSec Alpha. The company also got someboost from several institutional accounts that were
on-boarded during the year.
As the company was able to capitalize on the strong
equity underwriting activities of Chinabank Capital,
which participated in the cited preferred sharesissues, transaction volume from IPOs expectedly
grew nearly five-fold or 470% from P1 billion to P5.7
billion in 2023. The selling fees generated from IPO
marketing and distribution significantly compensatedfor the decline in commission revenues fromsecondary trading. Meanwhile, despite the highly
volatile market, our proprietary fund still managed toregister a positive annual return of 1.18% against the
PSEi’s negative 1.9%.

Looking forward to closer connections.
In October 2023, we started construction of
our Chinabank Securities Investors’ Lounge
in Bonifacio Global City where online tradingclients may do their trades, as well as to serve
as a venue for meeting with our clients and for
conducting product, market, and economic
briefings. This facility will be open by April 2024.

+10%

ChinabankSecurities accounts+470%

Transaction volume
from IPOs

C HI NA BANK I NG COR P O R AT I O N

21

OPERATIONAL HIGHLIGHTS

Insurance is not just for the worst-case scenario.
It’s a vital component of a financial plan. As ourcustomers build their portfolio, we advise them toincorporate insurance in their investment strategy
to have a safety net for the unexpected and theinevitable, to diversify their investments, as well as to
add predictability and tax benefits to their financial
plan. And as their life and financial circumstanceschange, we also help them ensure their coverageremains adequate for their needs.
In 2023, our bancassurance business, Manulife
Chinabank Life Assurance Corp. (MCBL),
implemented new strategies to better serve andsupport customers throughout their life stages.
While needs-based proposition continued
to be the overarching approach, more effort
was put into promoting regular pay policies tomake insurance more affordable, and to healthproducts to address our clients’ evolving healthprotection needs amid the rising cost of health care.
Simultaneously, sales roadshows and an exciting
promo was launched to broaden and deepen
engagement with corporate customers.
MCBL registered 3% increase in the number ofpolicies and 24% growth in the number of insured
lives. The shift to regular pay resulted in a 14% riseor a total of P733 million in new business value.
Driven by the “All-in-for-Health” campaign, which
included health product promos, incentives, and“Health Day” activities at selected branches, theStandalone Health product share in the businessincreased from 0.4% to 9%. MCBL’s Corporate
Solutions business achieved hefty growth of 357% incase counts and 31% in fee income.
Meanwhile, Chinabank Insurance Brokerage, Inc.
(CIBI), which provides direct insurance broking
to protect our customers’ personal and businessassets, continued to focus on serving customers
more effectively. Leveraging the strong synergies
within the Chinabank Group, solid partnerships
with A-rated insurance companies, and a robust
technology platform, CIBI accelerated initiatives toprovide curated and thoroughly vetted insurance
coverage and pay out claims as soon as possible.
CIBI recorded strong growth in 2023, with 15%
higher revenues. The number of policies increased
by 5%, and premiums produced grew by 18%.

+3%

number oflife policies+24%

number of
insured lives+5%

number of non-life
policies

Reaching new growth milestones. CIBI
celebrated 25 years and new milestones: ranking
among the top 10 in the local insurance broking
industry in terms of commissions earned* andachieving over P100 million in net income and P1
billion in premiums—CIBI was among the 15 outof the 61 insurance brokers in the Philippines tobreach the P1-billion level.
*Based on the Insurance Commission 2022
Brokers Ranking

22

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTFor the affluent and high net worth segment, weoffer integrated banking and wealth management
services customized to the unique needs of eachindividual or family. With a highly personalized andholistic approach, dedicated relationship managers
work with our affluent and high net worth clientsto understand their specific priorities and goals,
then bring together the resources and capabilitiesof all our business lines to develop and executethe appropriate tailored client solution. Whether
it’s to grow, preserve, or transfer wealth to the next
generation, the full power of the Chinabank Groupis behind every Wealth Management customer tomake it happen.
In 2023, our Wealth Management Group saw anincrease of 16% in AUM to P146 billion. The numberof new relationships grew by 8%.

P146 billion
AUM

Championing personalized service andsolutions for the affluent market. Private
Banker International conferred to Chinabankthe Outstanding Wealth Management Service
for the Affluent award, affirming our position
as the best partner for affluent individuals andfamilies in the Philippines. With a needs-based
strategy grounded on a clear understandingof their unique requirements, our WealthManagement team provides highly personalized
services to enable our affluent clients enhance,
preserve, and distribute their wealth to the next
generation.

+8%

WealthManagement
clients

C HI NA BANK I NG COR P O R AT I O N

23

OPERATIONAL HIGHLIGHTS

Financing dreams
Access to credit is essential to economic growth,financial security, and the fulfillment of dreams.
Whether for buying a vehicle or a house, foremergencies or big-ticket purchases, or for starting asmall business, we provide a range of consumer loan
products and services to help our customers get what
they need now.
The growing population with rising incomes buoyeddemand for consumer loans despite the higher cost of
goods, services, and credit. In 2023, our outstanding loans
to consumers grew by 25% to P181 billion, accounting for
23% of total loans. We continued to make home and carownership easy and affordable by offering competitive
rates, flexible payment terms, easy repayment via automatic
debit arrangement, and fast processing. We broadened
our relationships with accredited automotive dealers
and real estate developers, adding new partners andconverting in-house developer accounts to end-user
financing. We also strengthened our branch referral efforts
and asset quality management.
Outstanding real estate loans stood at P102 billion, up
17%. Outstanding vehicle loans, on the other hand, grewby 12% to P23 billion.

P181 billion
consumer loans+17%real estate loans

24

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Providing more rewarding options. In August
2023, we launched the Chinabank Destinations
World Mastercard, the Chinabank Destinations
World Dollar Mastercard, and the Chinabank
Destinations Platinum Mastercard. These newcredit cards make traveling the world more
rewarding with features like card spend to air
mile conversion rate of as low as P30 for 1 air
mile—the lowest in the Philippine market, free
one-year Accor Plus Explorer membership,
extensive hotel and dining deals across theglobe, and competitive foreign transaction feeof as low as 1.7%. Meanwhile, Chinabank Worldand Platinum cardholders enjoy additional perks
like 5% fuel rebate, 50% off premium dining
deals with the finest restaurants in Metro Manila,
and more.

+12%vehicle loans+52%
APD loans

Our credit cards business reached new heights
as we expanded our merchant partners toprovide customers with more exciting deals,
improved the features of existing credit
cards, and launched new credit cards thatempower customers to travel the world. Total
cards in force surged by 59%, breaching the
200k milestone. Credit card net billings andreceivables grew by 44% and 40%, respectively.
Despite the hefty growth, our past due ratecontinued to be one of the best in the industry at
2.56%*.
For short-term credit needs, CBS also provides
affordable, non-collateral multi-purpose loans of
up to P1 million. Individual customers can get a
personal loan, payable in up to 36 months, while
employees of the Department of Education(DepEd) can get an Automatic Payroll Deduction(APD) loan, payable in up to 60 months. Also
available is a salary loans program for businesses
that want to provide their employees with apersonal loan benefit.
With the launch of CBS Go and the expansion ofCBS’ network of branch lites and APD lending
centers, new personal and APD loans booked in
2023 increased by 20% and 24%, respectively.
Outstanding APD loans, the bulk of CBS’ loan
portfolio, surged by 52% to P52 billion.
*Credit Cards Association of the Philippines 4th Quarter 2023
Industry Report

It’s a go for public school teachers. As
part of its nation-building initiatives geared
towards financial inclusivity, CBS on-boarded
and opened free basic deposit accounts for
32,000 public school teachers via the CBS Go
app. These digital accounts will help teachers
nationwide grow their savings, borrow whenneeded, and easily conduct transactions online.

C HI NA BANK I NG COR P O R AT I O N

25

OPERATIONAL HIGHLIGHTS

Driving business andeconomic growthWith our customer-centric approach and deep
expertise across a full range of financial products
and services, we help companies grow as wecreate a sound and efficient financial system that
supports economic growth and stability.
Demand for loans to be used for working capital,purchase of equipment, or business expansion wasmoderate as the central bank’s monetary tightening
measures to curb inflation impacted borrowing
costs. We supported our customers’ business needs
and ambitions, mobilizing our resources where it
counts while keeping to our credit standards and risk
appetite. Serving thousands of SME, commercial,corporate, and institutional clients, our outstanding
business loans grew by 6% to P610 billion in 2023.
Our highly experienced branch managers andaccount officers work closely with our clients,
understanding their needs and setting them up forfinancial growth. In addition to credit facilities, weconnect companies with the expertise and capabilities
across the franchise for the advice and solutions they
need—deposits and investments, leasing, factoring,trade finance, insurance, cash management, andinvestment banking.

P610 billion
business loans

26

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Continued support for a real estate market
leader. Chinabank and Sta. Lucia Land Inc(SLI) entered into a P5 billion, 5-year term loan
agreement in 2023 to fund SLI’s nationwide
growth and expansion plans. SLI has beena client of the Bank for nearly a decade.
The partnership started with SLI’s maiden P4
billion bond offering in 2015 with Chinabank
Capital as issue manager and lead underwriter.
SLI is one of the Philippines’ biggest real estatecompanies and has launched more than 300
projects on over 10,000 hectares of land in 70
cities and municipalities across 10 regions and
15 provinces throughout the country.

+9%Companies using
Chinabank cash
management facilities

Running a successful business entails managing
the company’s cash flow well and striking the rightbalance. Too much cash on hand could mean
missed opportunities to invest and generate
additional earnings, while inadequate cash supply,
could necessitate borrowing money or selling off
liquid investments to generate the needed cash for
operations. With our cash management services, wehelp companies optimize their cash flow; streamline
liquidity, collection, and disbursement processes;
and manage other aspects of their financial
operations to achieve more operating and cost
efficiencies.
In 2023, the number of companies using our cash
management facilities increased by 9%; Chinabank
Online-Corporate users, in particular, grew by 12%.
The volume of cash management transactions roseby 12%, amounting to a total of P244 billion, up 13%.

+12%

Chinabank
Online-Corporate
users

Streamlining collections. Infosys Finacle
distinguished Chinabank as among the mostinnovative banks in the world. Our Automatic
Debit Arrangement (ADA) and Direct Debit
Arrangement (DDA), secure and convenient
collections options via our digital banking
platform Chinabank Online, won the Gold
Award in the Product Innovation category.
ADA is a payment facility that electronicallyinitiates recurring or scheduled collections
from customers’ or subscribers’ enrolled
deposit accounts. Meanwhile, DDA, is a total
outsourcing solution for the payment collectionof biller companies. These arrangements
enable corporate customers to improve theefficiency and timeliness of their receivables
collections from their subscribers.

C HI NA BANK I NG COR P O R AT I O N

27

OPERATIONAL HIGHLIGHTS

No. 1

bookrunner for
corporate bondand equity market
transactions in thePhilippines*

Through our investment house, Chinabank Capital, we offer afull suite of investment banking solutions that enable clientsto achieve their fundraising objectives and strategic goals.
These include arranging, managing, and underwriting debt
and equity transactions and providing financial advisory
services such as deal structuring, valuation, and execution ofmergers, acquisitions, divestitures, joint ventures, and othercorporate transactions.
Chinabank Capital continued to be the country’s top
bookrunner for bond deals in 2023, actively participating inbond transactions spanning sovereign issuances, corporate
offerings, and government bank bonds; as well as the top
domestic bookrunner for publicly-offered, SEC-registeredequity capital market transactions in the Philippines as we
strengthened our efforts to increase presence in the equity
space.
We continued to be a key player in supporting thegovernment’s sustainable development initiatives, raisinga total of P357 billion during the year. These transactions
were: the P3.875 billion Series 4 Fixed Rate Bonds of theDevelopment Bank of the Philippines, aimed at supportingthe country’s infrastructure development and the MSME
sector; and the P283.7 billion Series 29 Retail Treasury Bonds
and $1.26 billion Retail Onshore Dollar Bonds of the Bureauof the Treasury intended to bolster and sustain the country’s
economic recovery and facilitate the development of various
critical sectors such as agriculture, education, infrastructure,and healthcare.

28

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTThe only investment
house granted solemandates in thecorporate bondand equity capital
markets in 2023
* Bloomberg’s Peso-denominatedcorporate bond and equity league tables(excluding self-led issuances, private
issuances, non-government financial
institution issuances and non-local banks).

P544 billion
capital raised for
issuers

For the private sector, we helped raise P101 billion
from bond issuances and P86 billion from initialpublic offerings (IPOs) and preferred share offeringsfor our corporate clients. We were tapped for sevenout of the eight corporate bond issuances in 2023,
representing P101 billion out of the P115 billion
raised during the year. These include SM Prime
Holdings Inc.’s P33.3 billion Fixed Rate Bonds, thelargest corporate bond issuance in 2023 and thelargest corporate bond issuance by any real estatecompany, and Ayala Land Inc.’s P15-billion Fixed
Rate Bonds, with the bonds pricing at the tightest
spreads for 5-year and 10-year tenors to date.
Of the five public offerings of preferred shares in
2023, Chinabank Capital took on a more active role
as issue manager for three of the four transactions
we were part of, representing P86 billion out of theP88 billion raised. These include San Miguel Corp.’s
P34 billion Preferred Shares, the largest preferredshares issuance since 2016, and ACEN Corp.’s P25
billion Preferred Shares, the first Philippine Pesodenominated fixed-for-life listed equity instrument
to be introduced in the domestic market.
Chinabank Capital was also the only domestic
house to have solely led an IPO during the year with
Repower Energy Development Corp.’s (REDC) P1.05
billion IPO. REDC is the first pure-play hydropowercompany to be listed in the Philippines with
operating assets at the time of listing. The energy
firm used the proceeds of the IPO to support its
capital expenditures for the equity portion of its
15.0 MW Pulanai and 4.5 MW Piapi hydropower
projects and the development or acquisition ofother renewable energy projects.
Despite challenging market conditions, we weresuccessful in attracting quality investors for REDC’s
IPO, resulting in robust demand and an impressive
performance in the secondary market. Among
those that listed in 2023, REDC is the only company
trading above its IPO price*.

Leading in capital market structuring andexecution. For the eighth year in a row,
Chinabank Capital was recognized as theBest Bond Adviser in the Philippines by The
Asset. Our investment bank arm was also
recognized for their involvement in these awardwinning deals: Repower Energy Development
Corporation's P1.05 billion Initial Public
Offering, named Best IPO by The Asset andAlpha Southeast Asia; ACEN Corporation's P25
billion Preferred Shares Offering, named Best
Equity Deal by The Asset and commended
by FinanceAsia under the Best Equity Deal inSoutheast Asia category; SM Prime Holdings,
Inc.'s P33.3 billion Fixed Rate Bonds, named
Best Corporate Bond by The Asset; and Aboitiz
Equity Ventures' P17.54 billion Fixed Rate
Bonds, named Best Acquisition Financing by
The Asset and Best Multi-Year Bond of the Yearin the Philippines by Alpha Southeast Asia.

*Based on share prices as of December 31, 2023

C HI NA BANK I NG COR P O R AT I O N

29

SUSTAINABILITY HIGHLIGHTS

Focused on our

Stakeholders

Chinabank is focused on being a trustworthy and responsivebank to our customers and shareholders, a fair and caring
employer to our employees, and a responsible and proactive
ally to society. Committed to sustainable development, we are
diligently working with and for our stakeholders to help create
a better tomorrow today.

30

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTSustainability
governance
2-14, 2-24

Board of Directors

The Board of Directors has overall oversightof our sustainability initiatives, ensuringthat sustainability is institutionalized into
Chinabank’s strategy and objectives.
The Management Committee is responsible forkeeping our operations and the performanceof our personnel in line with the set objectives
on sustainability. It is supported by the
Sustainability Oversight Committee (SOC) which
ensures that oversight and management ofsustainability-related risk and opportunities arereflected within the Bank’s governance structure
and that the appropriate strategy is being
implemented accordingly.
The SOC is composed of the Chief Sustainability
Officer, Chief Finance Officer, Chief Risk Officer,
Head of Institutional Banking Segment, andHead of Business Development and Support
Division. The Committee meets quarterly andas needed.
The Sustainability Working Teams, composed ofthe different units of the Bank and coordinatedby the Environment, Social and Governance(ESG) Department, execute specific initiatives
such as identifying, measuring, managing,and monitoring sustainability-related risks andopportunities.

Management
Committee

Sustainability
Oversight Committee

Sustainability
Working TeamC HI NA BANK I NG COR P O R AT I O N

31SUSTAINABILITY HIGHLIGHTS

Sustainability strategy
2-22

Chinabank’s Sustainability Strategy is to support its vision and mission throughresponsible Value Creation activities that Contribute to the environment andsociety, while being Resilient.
In doing so, we operate under conditions that are Viable to the company andthe community. We will ensure that our contributions are Equitable to theenvironment and society, and that risks are Manageable.
It shall be governed by its Corporate Governance and Risk Management
framework.
Our Approach
2-23

Recognizing Chinabank’s vital role in advancing sustainable development—not justby being responsible in managing the impact of our operations, but also in making
responsible decisions in lending, investing, and the services we offer—we havebeen progressively integrating sustainability principles on three fronts: throughvalue creation, through our contribution, and by being resilient.

32

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTStakeholder engagement
2-25, 2-26, 2-29

We engage, listen, and respond to our key stakeholders to understand theirconcerns and expectations, improve our operations, develop long-term
solutions, and foster stronger relationships with them.

Our stakeholders

Key Engagement
Channels

Their concerns

Our response

Customers• Daily customer interactions:face-to-face with personnel
at branches; via e-mail,telephone, and social media
channels• Customer satisfaction survey• Regular client calls• Year-round events: market
outlook briefings, wealthforums, etc.

• Service quality and efficiency• Convenient and secureaccess to accounts throughdigital channels• Easy account opening
and loan application
requirements andprocesses• Sound financial advice• Capable personnel toaddress concerns• Digital transformation• Continuous process
improvements and capacitybuilding initiatives

Employees• Regular Management
Advisory• Internal Customer
Satisfaction Survey• Performance Appraisals• Online and face-to-faceinteractions and meetings• Retail Banking Business
National Convention• Work-life Integration
Programs and sportsfests• Townhall meetings• Internal social media: Viva
Engage• Career development• Work-life balance• Understanding oforganizational goals• Continuous implementationand enhancement of
employee development
programs• Cascade of Five-Year
Strategic Plan

Capital Providers• Annual Stockholders’Meeting• Quarterly analysts’ briefing• Group Strategy Update• Participation in the SM
Group’s quarterly investor
briefings• Shareholder returns• Financial performance• Continued growth andappropriate managementof risks• Continuous fiscal and risk
management improvements
to enhance profitability anddeliver dividends• Timely and transparent
updates and disclosures

Communities• Membership in industry
groups• Partnerships / sponsorships• Post-event feedback• Support for projects andinitiatives• Collaboration• Feedback on activities
conducted• Participation in and supportof worthy causes• Continuous enhancementof community relations

Regulators• Regular audits and reports• Regular Bangko Sentral ng
Pilipinas (BSP) examination• Regular correspondences
through letters and e-mails• Transparency andaccountability• Compliance with relevant
Philippine laws, rules, andregulations• Prompt response to inquiries
and requests for explanation
on certain matters• Timely and transparent
disclosures and regulatorycompliance reports• Annual conduct of internaland external audits

Suppliers• Online meetings• E-mail correspondences• Accreditation and bidding
process• Procurement policies• Cascade of policies andregular updates

C HI NA BANK I NG COR P O R AT I O N

33

SUSTAINABILITY HIGHLIGHTS

Materiality assessment
3-1, 3-2

Our most recent materiality assessment was
conducted in 2022 based on the following key
objectives:• To identify and prioritize which economic,
environmental, social or governance topic/
issue has an impact to and is impacted by the
Bank• To spot trends and anticipate emerging issues• To focus efforts on allocating resources better&KLQDEDQNRIƓFHUVVHOHFWHGEDVHGRQWKHEURDG
representation of their business/support function,area and scope in the organization, expertise,and seniority, participated in the materiality
assessment. Discussions were conducted to ensure
understanding of the purpose, process, andvalidation of the results.
In determining the potential economic,
environmental, social or governance topics, weconsidered various international sustainability
principles such as the standards of the GRI
Sustainability Reporting Standards and theSustainability Accounting Standards Board.

Using a proprietary data tool, the ESG Department
consolidated the responses which revealed thefollowing as Chinabank’s top ten material topics:
1

Health and Safety2Business Ethics

3

Corporate Governance4

Talent Attraction and Retention5

Anti-Corruption and Anti-Bribery

6

Digitalization

7

Labor Standards

8

Training and Education

9

Innovation

10

Economic Performance

We also designed the materiality assessment toincorporate topics of a more generic company
rather than focused on banking to have a broader
scope and to avoid excluding potential topics. As
such, we arrived at a total of 36 material topics—six
IRU(FRQRPLFHLJKWIRU(QYLURQPHQWƓIWHHQIRU
Social, and seven for Governance.
The respondents assigned a score for each topic based on the following:
SCORE
LEVEL

34

DESCRIPTION

4Extremely Important3

Very Important2

Somewhat Important1

Not so Important

Basis of our materiality scorecard- by scale, or how graveis the impact;- by scope, or how widespreadis the impact; and- by likelihood, or what are thechances the impact could happen

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTDirect economic value
generated and distributed
201-1

Our strong financial performance makes it possible for us toachieve our long-term growth objectives and deliver sustainablevalue to our stakeholders. In 2023, we distributed P39.8 billion or
70.2% of the wealth we created for the benefit of the people andthe communities where we operate, and retained P16.9 billion or
29.8% for Chinabank’s continued growth to remain well positioned
to respond to our stakeholders’ evolving needs.
ECONOMIC VALUE TABLE(in million PHP)
METRICS

2021

2022

2023

Economic Value Generated

41,90349,25556,698Economic Value Distributed

29,48334,15739,793Operating Costs

11,371

11,515

11,127

Employee Wages and Benefits

7,498

8,133

8,958

Payments to Providers of Capital

4,790

6,653

8,966

Payments to Governments

5,816

7,844

10,726712

16

12,24015,09816,905

Community Investments
Economic Value Retained

Through Chinabank Capital, we have also arranged financing forcompanies that are into renewable energy:•

Repower Energy Development Corporation's P1.1 Billion
IPO - the hydropower arm of Pure Energy Holdings
Corporation, a conglomerate comprised of hydropower,
bulk water and distribution, solar and geothermal power
member-companies. At the time of the IPO, the company
had 6 operating run-of-river hydropower plants with a
combined capacity of 10.2 MW. Proceeds of the IPO will
be used to (i) partially fund the equity portion of the 15.0 MW
Pulanai and 4.5 MW Piapi projects; (ii) fund the development
and/or acquisition of renewable energy projects; and (iii)fund operating and working capital requirements. REDC is
the first pure play hydropower company to be listed in thelocal stock exchange.

•

ACEN Corporation's P25.0 Billion Preferred Shares the listed energy platform of the Ayala Group with an
attributable capacity of around ~4,500 (MW) from its
facilities in the Philippines, Vietnam, Indonesia, India andAustralia, and a renewable share of 98%, which is among
the highest in the region. The proceeds will be usedprimarily for the financing or refinancing of new existing
Eligible Green Projects in accordance with ACEN’s Green
Equity Framework. The transaction was ACEN's maiden
preferred shares issuance and introduced the first Pesodenominated fixed-for-life equity instrument into thedomestic market.

C HI NA BANK I NG COR P O R AT I O N

35

SUSTAINABILITY HIGHLIGHTS

Sustainability performance
Our capital

These are the resources that we utilize for our business
operations to create value for our stakeholders

Financial- P1.48 trillion assets- 16.14% capital adequacy ratio- P22.02 billion net income

Manufactured- 648 Branches- 1,069 ATMs

Intellectual- Over 514,000 users of Chinabank
Mobile- P131 billion Value of retail digitaltransactions

Human- 10,725 Permanent and fixed
term employees- P65 million Spent on training
for employees

Social and relationship- 103 years of trusted banking
service and advice- 98% Customer satisfaction

Natural- 23,437 MWh Electricity consumption- 283,418 cu. meters Water consumption

36

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTHow we create value

Guided by our mission and vision, the business operations produce outcome that
aimed to fulfill our purpose and create value over the short, medium, and long term.

Our Mission

Business Operations

Our Vision•

Relationship Banking•

Financial Markets•

Savings Bank andBancassurance

The value we created

These are the outcomes of our business operations for the year
Shared Growth
We continued our strong financial performance in 2023, which enabled us
to provide economic value to our capital providers through dividends andinterest paid, the salaries and benefits paid to employees, through taxes paid
to the government and contribution to our communities.
➢➢

Page 35
Direct Economic Value Generated and Distributed
Page 38 to 41 Contribution to the SDGs

Focused on our clients
We continued to improve and expand our delivery infrastructure, making it
more efficient and convenient for our clients, while ensuring its security andreliability➢

Page 50 to 53 Leveraging technology, innovating for the future

One Chinabank
We ensured to make the bank a great place to work for our employees,
fostering continuous learning, holistic development, and strong engagement.
➢

Page 42 to 47 Forging ahead with a strong team

A trusted partner
We continued our strong commitment to improve consumer protection,
data privacy, cybersecurity and expand financial inclusion to enhance our
reputation as a trusted banking partner.
➢➢

Page 48 to 49 Protecting consumer rights
Page 54 to 55 Embracing corporate social responsibility

Conscious of nature
We remained aware of minimizing our ecological footprint to preserve theresources of our country.
➢

Page 56

Managing our environmental impact

C HI NA BANK I NG COR P O R AT I O N

37

SUSTAINABILITY HIGHLIGHTS

Contribution to the SDGs
3-3, 203-1, 203-2

We are driven to continuously create value by delivering on our role to ourstakeholders and contributing to the achievement of the United Nations
Sustainable Development Goals (SDGs).
UN SDGs

Targets
Target 1.4
By 2030, ensure that all men and women, inparticular the poor and the vulnerable, haveequal rights to economic resources, as wellas access to basic services, ownership andcontrol over land and other forms of property,
inheritance, natural resources, appropriate newtechnology and financial services, including
microfinance.
Target 1.5
By 2030, build the resilience of the poor andthose in vulnerable situations and reduce their
exposure and vulnerability to climate-related
extreme events and other economic, social andenvironmental shocks and disasters.
Target 1.a
Ensure significant mobilization of resources froma variety of sources to implement programmes
and policies to end poverty
Target 2.3

2

By 2030, reduce by one third premature mortality
from non-communicable diseases throughprevention and treatment and promote mental
health and well-being.
Target 3.8
Achieve universal health coverage, including
financial risk protection, access to quality
essential health-care services and access tosafe, effective, quality and affordable essential
medicines and vaccines for all.

38

2023

Total MSMEs supported by thebank products and services

Amount of microfinancing
loans provided to MSMEs

2,325

P18.01 billion

Refer to the section on “Environment & Social Risk
Management” on page 57 to 63

Amount of government taxes
paid

P10.73 billion

Amount of agribusiness loans

P14.00 billion

By 2030, double the agricultural productivity
and incomes of small-scale food producers, inparticular women, indigenous peoples, family
farmers, pastoralists and fishers, including
through secure and equal access to land, otherproductive resources and inputs, knowledge,
financial services, markets and opportunities forvalue addition and non-farm employment.
Target 3.4

UN SDGs

Contribution

Targets

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Refer to the section on “Health and Safety” on page47

Amount of loans to thehealth sector
Total lives insured
Amount of life insurance
claims paid
Contribution

P2.13 billion
189,817
P465.66 million
2023

UN SDGs

Targets
Target 4.4
By 2030, substantially increase the numberof youth and adults who have relevant skills,
including technical and vocational skills, foremployment, decent jobs and entrepreneurship.

Contribution

2023

Number of participants
attending in the financial
literacy programs of the Bank

11,534

Amount of loans to businesses
providing educational services

P5.99 billion

Refer to section on “Human Resources” on pages 42
to 47
Target 4.7
By 2030, ensure that all learners acquire theknowledge and skills needed to promotesustainable development, including, among
others, through education for sustainable
development and sustainable lifestyles, humanrights, gender equality, promotion of a culture ofpeace and non-violence, global citizenship andappreciation of cultural diversity and of culture’s
contribution to sustainable development.
Target 5.1
End all forms of discrimination against all womenand girls everywhere.

Selected Bank officers and staffs attended theseminar on “ESG Risk Assessment for Lenders &Asset Managers,” and “Measuring and Managing
Climate Risk,” hosted by Moody’s Analytics.

An ESG training module from LinkedIn Learning wasrolled out to employees.

Percentage of female
employees by Level

70% - (Rankand File)
60% - (JuniorManagement)
62% - (Middle
Management)
58% - (Senior
Management)

Target 5.5
Ensure women’s full and effective participationand equal opportunities for leadership at alllevels of decision-making in political, economic
and public life.

Total number of employees
who availed parental leave (bygender)285 – Male

Total number of female board
members2

652 – Female

C HI NA BANK I NG COR P O R AT I O N

39

SUSTAINABILITY HIGHLIGHTS

UN SDGs

Targets
Target 6.2
By 2030, achieve access to adequate andequitable sanitation and hygiene for all andend open defecation, paying special attention
to the needs of women and girls and those invulnerable situations
Target 6.4
By 2030, substantially increase water-use
efficiency across all sectors and ensuresustainable withdrawals and supply of freshwaterto address water scarcity and substantially reduce
the number of people suffering from water
scarcity.
Target 7.1
By 2030, ensure universal access to affordable,
reliable and modern energy services.
Target 7.2
By 2030, increase substantially the share of
renewable energy in the global energy mix
Target 8.8
Protect labour rights and promote safe andsecure working environments for all workers,
including migrant workers, in particular women
migrants, and those in precarious employment.

Contribution
Percentage of water being
measured and monitored incompany operations

2023
2023
100%

Refer to the section on “Environmental Footprint” onpage 56
Amount of loans provided tobusinesses providing waterand sanitation-related services

P22.23 billion

Amount of loans disbursed toenergy accessP25.42 billion

Amount of loans disbursed torenewable energy projects

P28.86 billion

Number of man-hours
recorded

18.39 million

Amount of income andbenefits of employees

P8.96 billion

Number of permanent andfixed employees

10,725Percent of rank-and-file
employees

60.80%

Refer to the section on “Human Resources” on page
42 to 47 and “Environmental Footprint” on page 56
Target 8.10
Strengthen the capacity of domestic financial
institutions to encourage and expand access tobanking, insurance, and financial services for all

Number of branch andsatellite units

Number of ATMs

40

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

648 branches
92 CBS lending
centers andbranch lites
1,069 ATMs

UN
UN SDGs
SDGs

Targets
Targets
Target 9.3
Increase the access of small-scale industrial andother enterprises, in particular in developing
countries, to financial services, including
affordable credit, and their integration into value
chains and markets
Target 9.4
By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, withincreased resource-use efficiency and greater
adoption of clean and environmentally soundtechnologies and industrial processes, with allcountries taking action in accordance with theirrespective capabilities.
Target 10.2
By 2030, empower and promote the social,economic and political inclusion of all,irrespective of age, sex, disability, race, ethnicity,
origin, religion or economic or other status
Target 11.1

Contribution
Contribution

2023
2023

Amount of corporate,commercial and trade-related
lending

P610.21 billion

Amount of loans disbursed togreen building

P6.98 billion

Amount of teacher’s salaryloan

P52.20 billion

Low-cost housing loan

P24.20 billion

By 2030, ensure access for all to adequate, safe
and affordable housing and basic services andupgrade slums.
Target 12.6
Encourage companies, especially large andtransnational companies, to adopt sustainable
practices and to integrate sustainability
information into their reporting cycle
Target 16.6
Develop effective, accountable and transparent
institutions at all levels.
Target 16.10
Ensure public access to information and protect
fundamental freedoms, in accordance withnational legislation and international agreements.

Refer to the section on “Environmental Footprint”
on page 56 and “Environment & Social Risk
Management” on page 57 to 63.

Two-time 5-Golden Arrow awardee for corporate
governance

Since 2018, we have been disclosing oursustainability initiatives on an annual basis and its
depth has been increasing/improving over time.

C HI NA BANK I NG COR P O R AT I O N

41

SUSTAINABILITY HIGHLIGHTS

Forging ahead with a strong
and resilient team
2-7, 2-8, 3-3People are at the heart of Chinabank. The dedication, enthusiasm, and competence of
our employees underpin our continued success and sustainability. We are committed tocreating a positive work environment and culture, upholding the best practices in people
management to enable a great corporate experience for Chinabankers, while empowering
our people to reach their full potential for today and tomorrow.

In 2023, Chinabank was recognized as the Employer of the Year in
the Philippines by the prestigious People Management Associationof the Philippines (PMAP), besting 32 nominees. We are proud tobe the only bank to win this coveted award in the last 30 years, atestament to our remarkable people management practices. We areeven more proud to have a strong team of 10,725* highly driven andqualified men and women across the Chinabank Group.

Employee Breakdown by Company
2022
Company Name
Chinabank

Male

Total

Female

Male

Total

5,275

2,249

7,524

5,348

2,294

7,642

Chinabank Capital

11

13

24

15

15

30

Chinabank Insurance Brokers

88

32

120

97

45

142

CBC Properties and Computer Center

67

112

179

69

124

193

Chinabank Securities

*

42

2023

Female

13

12

25

11

14

25

Chinabank Savings

1,431

980

2,411

1,623

1,070

2,693

Grand Total

6,885

3,398

10,283

7,163

3,562

10,725

10,662 permanent, 63 fixed-term employees

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTDiversity and Inclusion
3-3, 405-1, 406-1

We believe in creating a safe and inclusive work environment where diversity in its many forms is
respected. Thus, in both recruitment and career advancement, we offer equal opportunities to all
potential and current employees based on their qualifications and suitability. We have introduced
Days of Significance to celebrate diversity and inclusion in the workplace (International Women’s
Day and Month, PRIDE Month, and International Men’s Day) as part of our DEI (Diversity, Equality
and Inclusion) education campaign.

Employee Demographics
2022

2023

Permanent
Employees

Fixed-Term
Employees

Total
Employees

Permanent
Employees

Fixed-Term
Employees

Total
Employees

10,23746

10,283

10,662

63

10,725

Male

3,387

11

3,398

3,541

21

3,562

Female

6,850

35

6,885

7,121

42

7,163

6,291

44

6,335

6,460

61

6,521

Junior Management

873

-

873

950

1

951

Middle Management

2,658

-

2,658

2,809

Senior Management

415

2

417

443

1

444

Below 30 years old

4,829

36

4,865

4,957

52

5,009

Between 30-50 years old

4,533

6

4,539

4,777

8

4,785

875

4

879

928

3

931

NCR

6,197

36

6,233

6,535

60

6,595

Luzon

2,320

3

2,323

2,361

1

2,362

Visayas

1,046

5

1,051

1,069

2

1,071

Mindanao

674

2

676

697

Total HeadcountBy Gender

By Level
Rank-and-File

2,809

By Age Group

Above 50 years old
By Region

697

C HI NA BANK I NG COR P O R AT I O N

43

SUSTAINABILITY HIGHLIGHTS

Recruitment
3-3, 401-1

We aim to attract top talents from a variety
of sourcing platforms, including professional
networks, search firms, top colleges anduniversities, social media, employee referrals,
and recruitment events. In 2023, our Internal
Recruitment Drive, which rewards current
employees who successfully refer their friends
and previous colleagues to join Chinabank,continued to be the top source for qualified
candidates for our vacancies. A total of 187
officers and 402 rank-and-file personnel were
hired through this program, equivalent to 26.53%
of the total employees hired in 2023. Meanwhile,
our Open Recruitment Program was a greatsource for entry-level hires. It was launched in
2022 to provide fresh graduates and people
who lost their jobs or became underemployed
due to the pandemic a renewed start and theopportunity to get hired on the spot. During
the year, 51 open recruitment events were heldin Metro Manila and North and South Luzon
provinces. The events attracted over 3,700
applicants, of which 467 were hired for various
rank-and-file positions in our branches and head
office.

44

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTNew Hires
2022

2023

2,481

2,220

Male

760

723

Female

1,721

1,497

Total New Hires
By Gender

By Age Group
Below 30 years old

1,978

1,666

Between 30-50 years old

458

513

Above 50 years old

45

41

NCR

1,598

1,365

Luzon

447

479

Visayas237

222

Mindanao

199

154

By Region

Remuneration

Collective Bargaining Agreement

201-3, 401-2, 401-3

2-30

Chinabank’s high regard for human resources
is reflected in a sound compensation policy
anchored on the principles of fairness,transparency, and performance-based reward.
We provide fair and competitive compensation(basic salary, allowances, overtime pay), consistent
with industry standards, and comprehensive
benefits, including group accident insurance, termlife insurance, comprehensive healthcare plan,
retirement benefits, employee assistance plans(loans, car plan, tuition reimbursement, etc.), sickleave, vacation leave, and more. In 2023, various
salary reviews were implemented to ensure ourcompliance with the series of regional wage orders
released across the country. Only 78 rank-and-file
employees or 1.2% of our nationwide rank-andfile population were impacted by the regional
wage orders and their salaries were adjusted
accordingly.

We are committed to the best labor practices andrecognize the importance of employee unions
in upholding the rights of employees. Over theyears, we have maintained a positive working
relationship with our employee unions. Chinabankand our thrift bank arm CBS each have a union
and Collective Bargaining Agreements (CBA).
Chinabank’s new five-year CBA was signed in
2022, while the CBA of CBS, entered in 2019, will
expire in 2024. In 2023, a total of 5,521 rank-andfile employees, which is equivalent to 51.48% of
our total workforce, was covered by CBA.

Training
3-3, 404-1, 404-2

We recognize the potential each employee
brings to Chinabank and help them realize thispotential to the fullest. From our refreshedorientation program for new hires to engaging
technical, marketing, sales, values, service,and leadership training programs, we arebuilding a culture of continuous learning anddevelopment. Employees have access to awide range of role-specific and general training
courses to enhance their hard and soft skills
or learn new ones through our online learning
platform powered by LinkedIn Learning,
Learning EDGE (Empowered Talents Driving
Growth and Excellence), and the Chinabank
Academy. We also sponsor employees’ external
training. The total investment for training andeducation reached P65 million in 2023. We
recorded a total of 565,317 training hours,
which translated to 53 training hours per
employee, notably up from 29 training hours
per employee in 2022.

Training Hours
2022

2023

292,734

565,317

Male

79,452

165,494

Female213,282

399,823

Rank-and-File

226,127

327,315

Junior Management

14,46760,890

Middle Management

46,947

165,636

Senior Management

5,193

11,476

Total Employees
By Gender

By LevelC HI NA BANK I NG COR P O R AT I O N

45

SUSTAINABILITY HIGHLIGHTS

Career Advancement and Succession
404-3

We encourage our employees to constantly strive for
H[FHOOHQFHDQGHPSRZHUWKHPZLWKWKHUHTXLVLWHWRROV
training, and support for their professional growth. We
KDYHHVWDEOLVKHGFOHDUO\GHƓQHGUROHVUHVSRQVLELOLWLHV
DQGH[SHFWDWLRQVVRHDFKHPSOR\HHZRUNVSXUSRVHO\productively, and is well guided in meeting
performance standards and working with the wholeteam. Our Performance Management System ensuresthat promotions are based on meritorious performance.
Meanwhile, our Succession Management Program
ascertains that we have a pool of potential successors
for our future leadership needs ensuring a strong bench
for sustainability. We conduct periodic reviews of thetalent pipeline and promote Talent Mobility throughour Internal Career Fairs where Chinabankers are given
WKHRSSRUWXQLW\WRH[SORUHDVVLJQPHQWVWKDWZLOOIXUWKHU
develop their competencies and broaden their skill
sets. We also implement individual career development
plans to support the progression of Chinabankers.
These efforts resulted in a total of 1,602 employees
promoted in 2023.
As we continue to deepen our leadership bench, 222
RIWKHSURPRWHGUDQNDQGƓOHHPSOR\HHVPRYHGXSWRRIƓFHUSRVLWLRQ

Promotionb

Total Employee Promotions
By Gender

b
2022

2023

1,797

1,602

b

b

Male

597

591

Female

1,200

1,011

By Level
Rank-and-File649

Junior Management

182

Middle Management

647

Senior Management

124

Engagement and Retention
2-25, 401-1

We constantly engage with our employees
to motivate and energize them to stay with
us and do their best work every day. All
our human resources policies, strategies,
and programs are aimed at making ourpeople feel valued, that they are doing workthat matters, and that we understand andrespond to what matters to them. In 2023,
we implemented a Staggered Regular Work
Shift (SRWS), allowing employees to choose
from different work shift schedules: 7:00 a.m.4:00 p.m., 8:00 a.m.-5:00 p.m., 9:00 a.m.-6:00
p.m., and the standard 8:30 a.m.-5:30 p.m.
schedule. We also implemented a pilot runof the Blended Work Arrangement (BWA)ZLWKLQRXU,7*URXSZKHUHLQWKHRIƓFHUVFDQ
work from home for two days per week. These
helped improve turnover rate from 19.9% to17.1% and allowed us to hire competitively vs
HPSOR\HUVZLWKŴH[LEOHZRUNDUUDQJHPHQWV

46

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTEmployee Separations
2022

2023

1,990

1,783

1,899

1,654

91

129

Male

587

565

Female

1,403

1,218

1,335

1,044

Between 30-50 years old

548

610

Above 50 years old

107

129

NCR

1,320

1,101

Luzon

352

371

Visayas191

189

Mindanao127

122

Total Separations
By Separation Type
Voluntary
Involuntary
By Gender

By Age Group
Below 30 years old

By Region

Health and Safety

Occupational Health and Safety

3-3, 403-1, 403-2, 403-3, 403-6, 403-7, 403-8

We care about our employees and their wellbeing. We provide a healthy and safe work
environment at all our offices and branches inline with industry best practices and occupationalsafety and health standards. As part of our
Occupational Safety and Health (OSH) awarenesscampaign in 2023, we released the OSH policies
e-learning suite to provide employees easy accessto OSH training. A discussion on existing OSH
policies was also integrated in the orientation
program for new hires. Also in place are healthand safety policies, emergency procedures
and evacuation plans in case of fire or othersignificant incidents, and wellness programs
aimed at preventing accidents, managing
stress, and minimizing cases of work-related illhealth. Employees have access to confidential
and professional counseling with an in-house
psychologist.

No. of Fatalities
No. of Lost-Time Injuries
Total Hours Worked

2022

2023

0

0

356

0

17,155,246

18,390,613

Some of the programs implemented in 2023 were:• Onsite annual physical examination• Year-round executive check-up• Year-round mental health and wellness
consultation and referral• Preventive vaccinations• Sports activities: badminton tournament,basketball tournament• Wellness Day celebration• Work-Life Integration Programs: succulent
dish gardening and pot painting, basic
embroidery, soap making, basic brush pen
calligraphy, tote bag decoration, scented
candle making, and bath bomb making• The Mind Hub: #MentalHealthMatters
Series, Test Me Tuesday, CBC Time Out• Mental Health Webinars: Mental Health
Benefits of Exercise & Physical Activity and
Taking Care of our Mental Health• Series of health advisories
C HI NA BANK I NG COR P O R AT I O N

47

SUSTAINABILITY HIGHLIGHTS

Protecting consumer rights
3-3

Beyond the friendly smile and the customary professionalism,
we are deeply committed to protecting and upholding therights of consumers. We endeavor to earn and keep the trustof the banking public by being fair, honest, and forthright.
The Board is responsible for approving and overseeing theimplementation of our Consumer Protection Risk Management
System and Consumer Assistance Mechanism, while Management
is in charge of its proper implementation, ensuring the effective
management of day-to-day consumer protection activities, andstrict compliance with internal policies and applicable laws
and regulations.

Our Consumer Protection Framework is composedof the following pillars:• Board and Management Responsibility• Consumer Protection Risk Management
System• Institutional Culture• Disclosure and Transparency• Effective and Robust Complaints Handling
Our Customer Contact Center (CCC), headed by
the Chief Consumer Assistance Officer, handles
all our customer assistance channels and reports
consolidated complaints to the Risk OversightCommittee via Risk Management Group.
Meanwhile, our Service Standards & Quality
Department (SSQ), together with client-facing
units, ensures that important client feedback arecaptured and communicated with the product and/or service owners.
48

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Information
We help consumers make an informed choice
about our products and services. We provide
clear, understandable, and accurate information
through easily accessible communication channels:
website, social media, product brochures, materials
displayed in our branches, and print, broadcast,and online advertisements. Our branch personnel,
relationship managers, account officers, andphone bankers are adequately trained to answer
questions about our products and services, explain
the risks that certain products and services carry,
and advise consumers on financial matters. At thesame time, we promote financial literacy throughinformation campaigns on social media as wellas webinars and onsite events to help people inmanaging their finances, securing their financial
future, and using credit wisely.

Data Privacy

Consumer Assistance

3-3, 418-1

We respect and uphold consumers’ data privacy
rights. We apply the principles of transparency,
legitimate purpose, and proportionality inprocessing any personal data entrusted to us,
ensuring it is kept safe and secure, stored for
no longer than necessary, and used only inaccordance with the consent requirements of thelaw and the National Privacy Commission (NPC).
,QD*URXS'DWD3URWHFWLRQ2IƓFHU *'32 
was appointed to oversee the Chinabank Group’s
Privacy Program. The dedicated GDPO provides anenhanced layer of focus in navigating the intricaciesof the privacy legislature and in keeping us in stepwith the banking industry’s privacy practices. Our*'32DQG'DWD3ULYDF\2IƓFHZRUNFORVHO\ZLWKour Research & Innovation and Data Intelligenceteams to ensure our policies, procedures, andstandards on data privacy, data protection, data
JRYHUQDQFHDQGXVHRIDUWLƓFLDOLQWHOOLJHQFH
technologies are aligned with the changing
regulatory and business environment. In line withour commitment to the highest tenets of privacy
compliance, we successfully completed the NPC’s
registration requirements. The Chinabank Group’s
seal of registration is displayed in all our branches
DQGRIƓFHVInteractions
by Case TypeWe make it easy and convenient for consumers
to get the answers and the assistance they needfrom us.
For inquiries, complaints, or feedback, consumers
can reach us through the Chinabank Hotline, the“Contact Us” page of our website, and via mail,e-mail, Facebook, Twitter, and Viber (see page 168).
For reports on fraudulent activities or unethicalbehavior, consumers can also call the Chinabank
Hotline or use our Whistleblowing channel(see page 79).
CCC is our designated Consumer Assistance2IƓFH6XSSRUWHGE\RXU&XVWRPHU&RQWDFW
0DQDJHPHQW6\VWHP&&&HQVXUHVWKDWUHTXHVWVand concerns sent through any channel are well
GRFXPHQWHGHIƓFLHQWO\KDQGOHGDQGSURPSWO\LQYHVWLJDWHGDQGUHVROYHGb,Q&&&
UHFRUGHGbbFXVWRPHULQWHUDFWLRQVbKLJKHUbFRPSDUHGWR0DMRULW\RIWKH
interactions were inquiries and requests.
&RPSODLQWVDFFRXQWHGIRURQO\bbZKLFKZHUHPRVWO\UHODWHGWRbXQVXFFHVVIXOIXQGWUDQVIHUV$70
withdrawals, captured ATM cards, mobile banking
GRZQWLPHDQGFUHGLWFDUGWUDQVDFWLRQGLVSXWHVb)RU
WKH\HDU&&&UHVROYHGbRIVLPSOHFRPSODLQWV
DQGRIFRPSOH[FRPSODLQWVbZLWKLQ%63 Vstandard turnaround time for complaint resolution.

Inquiry
RequestComplaint
OthersBreakdownof concerns

Fund Transfer Related Concerns

Undispensed ATM Withdrawal

Captured Card

Mobile Banking Downtime

Credit Card Transaction Dispute

Other Mobile Banking Rellated

Digital Channel -Related

Deposit Related

Other Credit Card-Related Concern

Cash Management Related

Other Product Related Concerns

C HI NA BANK I NG COR P O R AT I O N

49

SUSTAINABILITY HIGHLIGHTS

Leveraging technology,
innovating for the future
3-3

In line with our commitment to helping our customers
succeed in their aspirations, Chinabank has embarked
on a comprehensive digital transformation journey toimprove our operations, enhance customer experiences,and remain responsive to the needs of our stakeholders.
With our digital initiatives, we are competing and growing
in the new economy as we make our business operations
greener and more inclusive. The ongoing process
automation, implementation of paperless systems, cloud
migration, and stronger push for digital banking not only
LQFUHDVHRXUHIƓFLHQF\DQGUHGXFHRXUFDUERQIRRWSULQWEXW
PRUHLPSRUWDQWO\WKH\GULYHRXUHIIRUWVIRUJUHDWHUƓQDQFLDO
inclusion and digital payment adoption in support of thePhilippines’ Digital Payments Transformation Roadmap. We
have been reaching out to underserved communities andbringing them into the formal banking system by making ourdigital banking services more accessible, convenient, andsecure. In 2023, 99% of the person-to-person payments and
77% of the person-to-business payments we processed weredigital transactions.
As we continue to embrace digital transformation, harnessing
the power of technology to drive sustainable growth andresilience, we aim to create long-term value
for our customers, stakeholders, and the environment.
Chinabank Digital
In 2023, we internally launched the pilot phase of our new retail digital banking platform,
Chinabank Digital, with more powerful features: improved registration process, easy login
YLDELRPHWULFVRU3,1VLPSOLƓHGIXQGWUDQVIHUFDSDELOLWLHVVHFXUHWUDQVDFWLRQVLJQLQJDQGD
language selector that includes Mandarin. When launched to the public by the third quarterof 2024, Chinabank Digital will have enhanced functionalities for easier QR code generation,
reload & top-up, digital payments, trust fund management, and remittance. It will also provide
XVHUVZLWKDPRUHVHDPOHVVƓQDQFHPDQDJHPHQWH[SHULHQFHHQDEOLQJWKHPWRGRPRELOH
check deposit, conveniently open new Chinabank accounts, and use credit cards for bill
payments. The ongoing evolution of Chinabank Digital mirrors our dedication to innovation,aligning with our commitment to sustainable growth and responsible business practices, whileconsistently meeting the diverse needs of our customers.

50

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTBusiness Solutions
Processes, systems, and technologies underlying andcomprising Chinabank’s overall IT architecture are being
significantly overhauled as part of our digital transformation.
In 2023, we upgraded our client-facing application for Instapay,
payment gateway, and card-related processes.
In the pipeline are upgrades for our Remittance, Trade
Finance, and Foreign Exchange Retail systems. Internally usedapplications designed to efficiently carry out support processes
such as IT Service Management, Loan Origination, and Contact
Center are also being improved.

C HI NA BANK I NG COR P O R AT I O N

51

SUSTAINABILITY HIGHLIGHTS

Data 360

Move to the Cloud

We have made significant progress in enhancing
our customers’ digital experience through the Data
360 Project. Several milestones were achieved in
2023 through this initiative:

We have also made remarkable progress in ourcloud adoption initiative, a strategic move that
underscores our commitment to innovation,
efficiency, and agility. During the year, we
strengthened Chinabank’s position as among thepioneers in the Philippines in harnessing the fullpotential of cloud computing.

•

The establishment of Chinabank’s First Data
Lake in the Cloud: This enables the creationof an enterprise data hub by integrating
and aggregating data from various sources,
both structured and unstructured, into acentralized repository. This allows for betterdata management and analysis.

•

Implementation of Data Stewardship Tier:This provides the Bank with a tool for
ensuring data quality and governance. It
allows for greater agility in managing dataand ensures the availability of trusted datafor decision-making purposes.

•

Customers’ 360-degree views: With the
project, we now have a comprehensive
view of our customers which allows forbetter insights and the ability to develop
personalized strategies for each customer.

•

Future Applications Ready: The project has
also prepared us for implementing futureapplications and insights, such as customer
lifetime value, customer profitability,
automated marketing, operational CRM,
embedded analytics, and API integration.
These applications will further enhance ourability to serve our customers and makestrategic decisions.

Overall, the Data 360 Project has been successful
in improving data management, analytics, andcustomer experience at Chinabank, positioning the
Bank for future growth and competitiveness in thedigital era.

•

Cloud Readiness: We completed thecomprehensive assessment of ourorganization’s readiness for cloud
adoption. This encompassed evaluatingorganizational preparedness, aligning
our environment with cloud standards,
obtaining necessary regulatory approvals,
and optimizing our infrastructure. This
foundational step laid the groundwork for aseamless transition to the cloud.

•

Cloud-First Policy: We officially implemented
a Cloud-First policy for all new systems
and applications. This strategic directive
ensures that our organization prioritizes
cloud solutions, harnessing the power ofscalable and flexible cloud resources to drive
innovation and responsiveness.

•

Cloud Migration of On-Premise Virtual
Machines to Azure AVS: We migrated 80%
of our on-premise virtual machine workload
to Azure AVS cloud. This transition not only
enhances our operational efficiency but also
unlocks the capabilities of Azure’s advanced
services, paving the way for a more robust
and resilient IT infrastructure.

•

Cloud Optimization: Building on the
momentum of our migration, we initiatedcloud optimization efforts to maximize
the benefits of the cloud while optimizing
resource utilization and costs.

•

Multi-Cloud Environment Implementation:
In line with our commitment to flexibility
and risk mitigation, we have commenced
the implementation of a multi-cloudenvironment. This approach not only
leverages the strengths of different cloudproviders but also enhances our resilienceby avoiding vendor lock-in.

Looking ahead, Chinabank is committed to pushing
the boundaries of innovation and efficiency. Our
cloud adoption journey is not just a technologicalshift but a strategic imperative that propels us into afuture where we can adapt, scale, and innovate with
unparalleled agility.
52

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTGenerative Artificial Intelligence
We are committed to embracing emerging
technologies and staying at the forefront ofinnovation. In 2023, we started to explore andrealize how Generative Artificial Intelligence (GenAI)
is disrupting industries and services globally with
opportunities in cost reduction, uplifting employee
productivity, and overall work satisfaction. We
launched CHIB GPT, our first GenAI-based bot
for Chinabank employees, and our Ethical AI
Guidelines which are aligned with Chinabank’s
security, privacy, compliance, and ethical standards
CHIB GPT aims to boost productivity, enhanceawareness about Gen AI internally, introduce AI
capabilities to the business, and uncover high value,
revenue-generating use cases. It is trained to be aconcierge of Chinabank information—from humanresources, digital services, directory services, cards
and securities Our employees use CHIB GPT as a
virtual assistant and a personal advisor to help withanalysis, summarizations, assessments, and evencreative work.
We are broadening the CHIB GPT programme
to cover customer interactions and other GenAIpowered services, including Conversational Banking
for customers and Employee co-pilots by 2024.

Cybersecurity
3-3, 418-1

We have a comprehensive Cybersecurity Programthat is aligned with government and industry
best security practices that provides a safe andsecure banking environment for our customers.
Our Information Security and Data Privacy Division(ISDPD) is responsible and accountable for the
Cyber Security Program that continuously monitors
and protects our systems against cybersecurity
threats.
Our Risk Oversight Committee receives
regular reports on information security risk andperformances of our cyber security controls. They
are also given updates on significant internal andexternal cyber security events as well as the existing
controls and response efforts to mitigate or containthose events from affecting the Bank.
Our IT Team led by the Chief Information Officer,
works hand in hand with the ISDPD and the
Risk Management Group in managing andimplementing the Bank’s IT security controls
effectively.
To fortify our strong cyber security foundationand defense, various security assessments andpenetration testing of our IT systems are regularly
conducted by both our in-house cyber security
team and independent parties. At the same time,
as part of our continuous effort to establish an
information security culture, all new employees
are mandated to undergo an information security
and data privacy trainings prior to accessing our
IT systems, while all current employees undergo
annual information security e-learning. This is
aside from the security reminders that are sent
regularly to ensure that employees remain vigilant
and up-to-date with the current cyber threats. On
top of this, information security due diligence andassessment are conducted on our service providers
to gain a level assurance that our information
is well protected on their environment. For our
stakeholders, we enjoin them in the fight against
cyberattacks through our cybersecurity campaign
on our website and social media channels. In 2023,
we continued to proactively communicate with ourcustomers on keeping their personal information
safe and spotting and avoiding cyber scams andthreats.
Aside from our robust IT system and cyber security
program, we are committed in maintaining a highly
capable cyber security and IT Team. In 2023, wehave conducted several specialized trainings on
cyber security such as but not limited to secure
coding, malware analysis, cloud security, andincident responses.
C HI NA BANK I NG COR P O R AT I O N

53

SUSTAINABILITY HIGHLIGHTS

Embracing corporate social
responsibility
3-3, 413-1

Chinabank is a responsible corporate citizen that stands for values
and strives to create value. We are committed to giving back tosociety by hiring and buying locally, promoting financial inclusion,and encouraging a strong spirit of volunteerism and charitablegiving among our employees.
Financial Literacy
We aim to promote economic empowerment and create a more
inclusive and equitable society through our banking services andfinancial literacy program. In 2023, Chinabank conducted 343 online
and onsite sessions of financial management training for Filipinos
bound for abroad as part of the Pre-Departure Orientation Seminarof the Philippine Overseas Employment Agency. We also resumed
our Financial Literacy Roadshow, visiting five schools and universities
to teach students how to budget and secure their financial future. A
total of 11,534 OFWs and students benefitted from these events.
Meanwhile, CBS had 9 financial wellness trainings, sharing practicaltips on financial planning to 237 individuals,
and an SME Kapihan Roadshow in eightcities: Pasig City, Angeles City, Baliwag(Bulacan), Cagayan de Oro, Iloilo City, Roxas
City, San Pablo City, and Zamboanga City.
Over 114 owners of small businesses joined
the CBS SME Kapihan for insights on market
prospects and financing opportunities.
Brigada Eskwela
We have been actively supporting Brigada Eskwela, the annual campaign of the
Department of Education (DepEd) which enjoins parents, students, faculty, andthe private sector to help clean, refurbish, and rehabilitate pubic elementaryand high school campuses and facilities before the start of each school year. In
2023, CBS redoubled efforts for Brigada Eskwela, supporting 737 public schools
nationwide and complementing the initiative with the CBS Gadget Assistance
Program to provide new computer laptops for DepEd regional offices’ lead
personnel. CBS donated a total of P6.86 million worth of construction materials,
housekeeping supplies, office equipment, electronic devices, sanitation kits, andschool and office supplies.

54

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTNational Teachers’ Day
We are proud of Filipino teachers and recognize their crucialrole in the country’s development. A long-time DepEd partner,
CBS actively supports programs to uplift public school teachers,
including the annual National Teachers’ Day (NTD) celebration.
CBS donated P8.5 million in prizes—one Toyota Innova, one
Toyota Raize, 20 Honda motorcycles, 35 Dell laptops, 10
Samsung smart TVs, and 6000 freebies—for teachers at the 2023
NTD culminating event in Butuan City.
Community OutreachThrough the Chinabank Human Resources Group - Personal
Social Responsibility Program, we conduct outreach activities,
including donation and clean-up drives, disaster relief,
and medical missions. In 2023, over a hundred Chinabankvolunteers helped distribute bags of food items and hygiene
essentials and lunch packs to the 750 Aeta families in Barangay
Nabuclod in Floridablanca, Pampanga, as well as collect trash
and debris along the Manila Bay coastline during the 2023
International Coastal Cleanup.
Environmental Preservation
We make a conscious effort to reduce our carbon footprint andencourage our employees and clients to also help protect theenvironment. In 2023, CBS conducted a tree planting activity tohelp mitigate the impact of climate change, planting 750 tree
seedlings and saplings at the La Mesa Watershed in Quezon
City. CBS partnered with leading Philippine fashion brand
Bayo for a carbon offsetting program wherein Bayo will makea contribution on behalf of CBS to various sustainable projects
to offset the carbon emissions resulting from the production of
CBS red polo shirts. CBS also held an art exhibit and auction,
the proceeds of which were used to support conservation
efforts for the La Mesa Watershed and the Tubbataha Reefs
Natural Park.

C HI NA BANK I NG COR P O R AT I O N

55

SUSTAINABILITY HIGHLIGHTSManaging our environmental impact
3-3

We are committed to upholding sound business practices and promoting resource
efficiency by monitoring and reducing our consumption of resources such as fuel,electricity and water.
Fuel Consumption
302-1, 305-1

Our direct emission or Scope 1 comes mostly from the fuel consumption of our generator
sets during testing and power interruptions, transportation in bank-owned vehicles andfrom armoured vehicles used in servicing our branches. We gathered our Scope 1 emission
by following the operational control approach of the Greenhouse Gas Protocol, where acompany accounts for 100% of the emissions from the operations over which it or one of its
subsidiaries has operational control. The gathered fuel consumption is then multiplied withthe stationary combustion emission factor for Gasoline and Diesel.

Scope 1 (in MT CO2e)

2021

2022

2023

2,148

2,944

2,089

Electricity Consumption and Indirect Emission
302-1, 305-2

Emissions arising from our use of purchased electricity in facilities that are fully controlled
and operated by the bank are our source of indirect emission or Scope 2. In gathering ourindirect emission or Scope 2, we followed the accounting method of the GHG Protocol
Corporate Accounting and Reporting Standard, which refers to the indirect emissions createdby electricity generation to the end consumers of a given grid. We applied the “location
based” method since the physics of energy production and distribution functions the sameway in almost all grids, with electricity demand causing the need for energy generation anddistribution. The gathered electricity consumption is then multiplied with the latest available
Simple Operating Margin Emission Factors from the Department of Energy’s (DOE) National
Grid Emission Factors for Luzon-Visayas and for Mindanao.
2021

2022

2023

Scope 2 (in MT CO2e)

16,797

17,993

16,736

Electricity Consumption(in MWh)

22,44925,11423,437

Water Consumption
303-5

The following data is based on the consolidated water meter readings from all our branches
and corporate office.
2021
Water Consumption(in cubic meters)

56

2022

2023

306,333 435,045

283,418

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Managing our environmental
and social risks
We are strengthening our risk management framework to mitigate the potential
effects of environmental and social (E&S) risk (including climate risk) andopportunities to Chinabank’s performance and prospects.
Governance
The Sustainability Oversight Committee, a sub-committee of the Management Committee, is responsiblefor identifying, measuring, managing, and monitoring E&S risk (including climate risk) and opportunities
and this is reflected in its Charter.
Among its tasks, the Committee reviews the appropriate parameters to be used in managing E&S risk(including climate risk) and the appropriate climate risk stress test scenarios, which will be used to facilitate
the updates/development of the appropriate Bank policies accordingly.
Strategy
Recognizing our vital role in advancing the country’s sustainable development, while also protecting
Chinabank’s assets and operations from the potential negative consequences of E&S risk (including climaterisk), our strategy includes the establishment of a Sustainable Finance Framework and the development ofan E&S Risk Management Framework
Sustainable Finance Framework
Chinabank’s sustainable finance framework defines our approach and methodology for sustainablefinance, including the eligibility criteria for projects for financing and procedures for the issuanceof sustainable finance instruments (SFIs) such as Green, Social or Sustainability bonds.

C HI NA BANK I NG COR P O R AT I O N

57

SUSTAINABILITY HIGHLIGHTS

Sustainability Transition Plan
The year 2023 saw the global and local regulatory landscape continuously evolve in terms of sustainability
with issuances from the newly formed International Sustainability Standards Board—IFRS S1 and IFRS S2,and the Bangko Sentral ng Pilipinas (BSP)—Circular No. 1185 or Grant of Additional Single Borrower’s Limit
for Financing Eligible Projects and Zero Percent Reserve Requirement Rate Against Sustainable Bonds.
These are in addition to the previous issuances of enabling regulations from the BSP to foster wider
adoption of sustainability principles in the domestic financial system.
We believe that these standards and frameworks provide strong guidelines for the banks to play key roles
in building a more sustainable and resilient Philippine economy. The Chinabank Group is committed to not
only meet these requirements, but also to do our part to help accelerate the low-carbon transition of ourcountry’s financial sector.
Key Accomplishments in 2023:
Chinabank— Environment Risk Hazard Modeling Exercise
Completed the assessment of environmental
risk/hazards faced by our facilities andbranches such as earthquake, volcano,flooding, or sea rise using HazardHunterPH
and Moody’s Climate on Demand.
— Sustainable Finance Framework
Established a process on how we take
ESG considerations into account when
making a financing or investment decision.
The Framework is of two parts: 1.) a
categorization in place for us to identify
within our own internal portfolio on which
ones are considered as sustainable financeand, 2.) to provide procedures on how the
Bank could issue SFIs such as Green, Social
or Sustainability bonds.
— ESG Portfolio Profiler
Completed the assessment of our non-retailloan and investments to identify each one’s
ESG risk profile and determine the Physicaland Transition Risk Scores and Scope 1 and
2 GHG Emissions, together with Moody’s
Analytics.
— Capacity Building
Conducted a series of ESG-related training
courses for selected officers from various
units.
— Sustainability AwarenessRolled out an ESG training module toprovide our employees with a fundamental
understanding of sustainability topics.

CBS
—

—

—

—

58

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Governance• Redefined CBS’ Mission Vision
Statement and Core Values to reflect its
commitment on sustainability.
• Creation of Sustainability SubCommittees under its Board Risk
Oversight Committee (ROC) and its
Credit, Collections, and Asset Recovery
Committee (CRECOM).
• Creation of a Sustainability Department
to ensure the management andimplementation of its sustainabilityrelated programs and activities.
Improve Resiliency• Engaged Deloitte as its external
consultant in formulating its E&S risk
management system, gap analysis andcapacity building.
• Created and conducted Personal
Wellness Modules focused on
maintaining financial resilience throughcalamities such as climate change
induced extreme weather events.
Environment Protection• Engaged Bayo as external partner in
offsetting its carbon emissions fromthe manufacture of CBS uniforms by
supporting renewable energy projects,
including the Burgos Wind Farm.
• Created an internal policy thatencourages employee engagement
through tree planting activities incoordination with DENR.
• Donated cash and in kind to theconservation efforts in La Mesa
Watershed and Tubbataha Reef.
Capacity Building• Completed ESG Materiality Assessment.
• Conducted capacity building on ESG
Trainings with CBS Officers.

Risk Management
Recognizing the importance of taking into account the potential negative impacts of events oractivities on the natural environment and the communities when making business decisions, weare making environmental and social risk management an integral part of our risk management
practices. Our approach is to manage these risks on two fronts: credit impact and operational
impact.
E&S Risk Management Framework
We are developing our Environmental & Social Risk Management Framework to identify, measure,manage, and monitor environmental and social risks—whether natural or man-made, including
environmental pollution; hazards to human health, safety, and security; negative impacts oncommunities and threats to a region’s biodiversity and cultural heritage—that may arise from a
project or activity for which Chinabank grants a loan.

Environmental and Social Risk
Management Framework

Credit Risk

Environment

SocialOperational Risk

Governance

Earthquake

Flood

VolcanoIn aid of this development, we continuously seek ways to appropriately assess the environmental,social and governance risk of our asset portfolios as well as their physical and transition risks.
For our operations, we are using hazard mapping to assess our facilities and branch network’s
exposure to potential damages brought about by environmental hazards such as seismic, volcanic,
typhoon, flooding, or sea rise.

C HI NA BANK I NG COR P O R AT I O N

59

SUSTAINABILITY HIGHLIGHTS

Credit Impact
In 2022, Chinabank engaged Moody’s Analytics as its external advisor and usedtheir ESG Score Predictor to initially analyze the Bank's credit portfolio, with a plan
to eventually use the tool to influence its credit risk management system

Moody's Analytics proprietary tool used to estimate ESG
Moody's Analytics ESG Score Predictor is an analytical framework thataims to bridge coverage gaps by generating a wide array of ESG andcarbon footprint metrics. Its comparable and standardized predicted
metrics include large-, mid-, and small-cap firms, spanning a wide
variety of industries across both developed and emerging markets.

Coverage
PrivatePublicESG SCORESFOR EVERYCOMPANY
TYPE

Wide
Industry
Range &
DetailSmall,
Medium& Large

Multinational,
National &Subnational

Data Input
SIZE
LOCATION
INDUSTRY

Predicted ESG Scores
Physical Risk

CarbonEmissions
Footprint

ENVIRONMENT

Environmental Strategy
Impact on Environment
Energy& More60

SOCIAL

Non-Discrimination & Diversity
Health & Safety Conditions
Labor Conditions& More20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTGOVERNANCE
Regular Practices
Board of Directors
Shareholders& MoreTransition Risk

Chinabank leveraged Moody’s Analytics ESG Score Predictor to address the challenges
of gathering large quantities of ESG-related data of our borrowers, especially for unlistedcompanies, and to be able to generate comparable and standardized metrics. Using thedata as of the end of December 2023, the predicted Climate Risk + Environment Score
and Social Score of the Bank’s non-retail loans as an approximate breakdown of theenvironment and social risk exposures on a per industry or sector are as follows:

Climate +Environment(E) Score

MAJOR INDUSTRY

Social (S)Score% Exposure

%
Count

1

Real estate activities

23%

14%

2

Financial and insurance activities

17%

4%

3

Electricity, gas, steam and air conditioning supply

14%

1%

4

Manufacturing

10%

13%

5

Other service activities (including arts and activities of households)

8%

3%

6

Wholesale and retail trade; repair of motor vehicles and motorcycles

7%

37%

7

Information and communication

5%

1%

8

Transportation and storage

3%

4%

9

Water supply; sewerage, waste management and remediation activities

3%

0%

10

Mining and quarrying

2%

0%

11

Accommodation and food service activities

2%

5%

12

Construction

2%

7%

13

Professional, scientific and technical activities (including Education)

1%

3%

14

Agriculture, forestry and fishing

1%

3%

15

Administrative and support service activities

1%

3%

16

Human health and social work activities

0%

2%

17

Public administration and defense; compulsory social security

0%0%Legend:Risk Bucket

Score Range

Very Low

Mean +1*SD to 100

Low

Mean to Mean + 1*SD

MediumMean -2*SD to MeanHigh

0 to Mean -2*SD

The categorization of the predicted Climate Risk
+ Environment Score and Social Score are basedon how far is the mean of the obtained weighted
score of the Borrowers from the mean scores of all
the Borrowers in the database of Moody's ona global level.

Based on the ESG Score Predictor, the Bank has identified a majority of the Bank’s non-retailloan portfolio as having a medium risk in terms of environmental and social (E&S) factors.
However, the Bank acknowledges the importance of enhancing this profile further by raisingawareness and promoting better management of E&S risk among its Borrowers and internal
stakeholder.

C HI NA BANK I NG COR P O R AT I O N

61

SUSTAINABILITY HIGHLIGHTS

Operational Impact
The Philippines is one of the countries that are susceptible to the impacts of climatechange due to the rising sea levels, super typhoons, and prolonged severe droughts. In
2023, we conducted assessments on the potential exposures of our offices and branches
to various natural hazards such as earthquakes, volcanic eruptions, and flooding using
HazardHunterPH, as well as sea rise using Climate on Demand.
The map below shows the location of Chinabank’s offices and branches with very
high risk of exposures to the identified hazards.

Chinabank Hazard Map

Earthquake
VolcanoFlooding
Sea RiseHazardHunterPH
A tool developed by GeoRisk Philippines, a multigovernmental agency initiative led by DOST-PHIVOLCS
to generate an indicative hazard assessment suchas seismic, volcanic, storm surge, severe wind, andflood- and rain-induced landslides based on the user’s
specified location.

62

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTClimate on Demand
A tool developed by Moody’s RMS, a world leading
catastrophe risk assessor as it provides risk scores forfloods, heat stress, hurricanes and typhoons, sea levelrise, water stress and wildfires across asset classes,
including individual corporate facilities and other real
assets, infrastructure assets, corporate entities, subnational entities, and sovereigns.

The graphs below show the percentage of our offices and branches that are exposed
to hazards such as earthquake, volcanic eruptions, flooding and sea rise and underwhich risk categories:

Chinabank
Earthquake

71%

Volcano

49%
40%
20%
7%

9%

4%

Flooding

0%71%

Sea Rise

66%

21%

19%
9%

3%

2%

0%

CBS
Earthquake

Volcano
61%

50%
36%
25%
13%

11%
2%

Flooding

1%

69%

Sea Rise

62%

30%

25%
10%
3%

Low RiskMedium Risk

1%

High Risk

0%

Very High Risk

Based on the assessment, no more than 4% of the facilities are exposed
to 'very high’ risk to any hazards.

C HI NA BANK I NG COR P O R AT I O N

63CORPORATE GOVERNANCE

Focused on our

Shareholders

We work hard at doing business the right way—ethically,
responsibly, and sustainably. Led by a Board fully committed
to adopting corporate governance best practices, we arecontinually building trust, inspiring investor confidence, andenhancing Chinabank’s position to deliver long-term value toour shareholders.

64

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Advocating governancebeyond compliance
Robust corporate governance practices are the bedrock of Chinabank’s
continued success and resilience. Central to our governance approach
are the principles of fairness, accountability, integrity and transparency.
Guided by the corporate philosophy to do business the right way and constantly adapt tomultifaceted changes, we place significant emphasis on proactive governance. We advocate
continuous improvement, implementing new initiatives along with the regular best governancepractices to further strengthen our position as one of the best governed companies in the region.
Significant Developments in 2023
2-9, 2-12

•
•
•
•
•
•
•
•
•
•
•

Amended the By-Laws to revise the percentage distribution of the net earnings
to the Officers, to allow flexibility and opportunity to share with its employees
more definitively the financial growth of the Bank;
Elevated the IT Steering Committee to a Board-level committee, to assist theBoard of Directors in its IT-related duties and responsibilities;
Established the management-level Sustainability Oversight Committee to ensurethat oversight of sustainability-related matters is embedded in the
Bank’s governance structure;
Institutionalized the Sustainable Finance Framework to further strengthen the
Bank’s sustainability strategy;
Established the Reputational Risk Management Framework to identify, assess
and mitigate potential risks that could adversely impact the Bank’s image
and brand value;
Conducted the virtual Annual Stockholders’ Meeting, allowing stockholders
to exercise their voting rights through a secured electronic registration andvoting facilities;
Updated the Corporate Governance Manual to align with recent rules, regulations
and international best practices;Enhanced the Board Committee Charters and Board Self-Assessment Forms.
Conducted the annual assessment for the Board, Board-level committees,
Independent Directors, Compliance Group, External Auditor and the President.
Facilitated the accomplishment of the Conflict of Interest and RPT Disclosure Formby the re-elected directors; andConducted an in-person corporate governance training for the Bank’s directors
and key officers, as facilitated by the Good Governance Advocates and Practitionersof the Philippines (GGAPP).

Governance Principles

Fairness

Accountability

Integrity

Transparency

We treat our shareholders
fairly and equitably whether minority or
majority, local or foreign.
We balance our profit
motive, ensuring thatthe investment of allshareholders is protected.

We are accountable andresponsible for our actions
and performance andcommit to uphold the law,
behave ethically,and protect the resources
entrusted in our care.

We adhere to a moral
code of honesty andprofessionalism in our
thoughts, words,
and actions.

We are truthful andforthcoming, ensuring
the accurate and timely
disclosure of and easy
access to all material
matters, such as thefinancial situation,
performance, ownership,
and governance ofthe corporation.

C HI NA BANK I NG COR P O R AT I O N

65CORPORATE GOVERNANCE

Code of Ethics

Corporate Governance Manual

3-3

3-3

Anchored on our core values of integrity, highperformance standards, commitment to quality,
customer service focus, concern for people,
efficiency, resourcefulness, and initiative, ourCode of Ethics articulates the acceptable practices
in carrying out the institution’s functions and indealing with our clients. The Code establishes clear
guidelines for professional and ethical businessconduct, firmly expressing our unwavering stanceagainst any illegal or irregular activities.

Underpinned by strong leadership, robust
controls, and adherence to core values, ourCorporate Governance Manual institutionalizes
the principles of effective corporate governanceand promotes our beyond-compliance approach.
It contains our governance structure, policies
and standards, duties and responsibilities of theBoard and individual directors, compliance system,
internal controls, and guidelines on protecting
the rights of various stakeholders, among others.
It is regularly updated to align with the changes
in the laws, regulations, and best practices. The
Chief Compliance and Governance Officer actively
oversees and monitors compliance with the
Manual.

All new directors and employees are given a
copy of the Code, required to acknowledge
receipt thereof, and undergo the New Employees’
Orientation Course wherein the Code iscomprehensively discussed. Everyone is required
to uphold the tenets set within.

In 2023, we have fully complied with all material
provisions of the Corporate Governance Manual.

Organizational Structure
As of December 31, 2023
BOARD OF DIRECTORSBOARD OF COMMITTEESRELATED PARTY
TRANSACTIONSCOMMITTEECORPORATESECRETARY
Leilani B. Elarmo

REMUNERATIONCOMMITTEEINFORMATIONTECHNOLOGYSTEERINGCOMMITTEENOMINATIONSCOMMITTEEEXECUTIVE
COMMITTEEOFFICE OF THE
VICE CHAIRMAN
Gilbert U. Dee

BOARD OFTRUSTEES OF CBC
RETIREMENTPRESIDENT & CEO
Romeo D. Uyan, Jr.

MANAGEMENTCOMMITTEESUSTAINABILITYOVERSIGHT COMMITTEECHINABANKSAVINGS
James ChristianT. DeeCHINABANKCAPITAL
Ryan Martin
L. Tapia

RETAIL BANKING
BUSINESS SEGMENT
Jose L. Osmena, Jr.
Clara C. Sy

CHINABANKSECURITIESMarisol M. Teodoro

66

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTINSTITUTIONALBANKINGSEGMEN T
Lilian Yu

WEALTHMANAGEMENTAngela D. Cruz

CREDIT
COMMITTEEPEOPLE & CULTURE
COMMITTEEFINANCIAL MARKETSSEGMENT
Magnolia Luisa N.
Palanca

CONSUMER BANKINGSEGMENT
Aloysius C. Alday, Jr.

Setting the tone at the top
Our shareholders are represented by a highly capable independent
Board that sets the tone of our strong governance culture, shaping key
decisions, actions, and relationships across the organization.
Governance Structure
2-9, 2-12

At the forefront of promoting sound governance is the Board of Directors, steering theoverall corporate direction and cultivating a culture of accountability. On the other hand,the execution of strategies aligned with the Bank’s business objectives and overseeing
operational activities are entrusted to the Management.

TRUST
INVESTMENTCOMMITTEE

TRUST & ASSETMANAGEMENTGROUP
Mary Ann T. Lim

ASSET & LIABILITYCOMMITTEEINNOVATION AND
TRANSFORMATIONSEGMENT
Delfin Jay M. Sabido, IX

CHINABANK PCCIFrancis Andre
Z. De Los Santos

AUDIT
COMMITTEERISK OVERSIGHT
COMMITTEE

AUDIT GROUPRISK MANAGEMENTGROUP
Ananias S. Cornelio III

Jeruel N. Lobien

COMPLIANCECOMMITTEECORPORATEGOVERNANCE
COMMITTEECOMPLIANCE GROUP
Aileen PauletteS. De Jesus

OPERATIONS COMMITTEE

BUSINESSOPERATIONSSUPPORT SEGMENT

CREDIT
MANAGEMENT
Melissa F. Corpus

FINANCESEGMENT
Patrick D. Cheng

CENTRALIZEDOPERATIONS
Delia Marquez

CORPORATE SUPPORTSEGMENTLEGAL &
COLLECTIONS
Belenette C. Tan

CHINABANKINSURANCE
Frankie G. Panis

BANCASSURANCE
Regina Karla
F. Libatique

HUMAN RESOURCES
Tani Michelle
M. Cruz

ADMINISTRATIVE
Baldwin A. Aguilar

BUSINESS DEVELOPMENT& SUPPORTAngelyn Claire CC. Liao
BUSINESS PROCESSREENGINEERING &OPTIMIZATIONJose Luis A. Alcuaz, Jr.

INSTITUTIONAL &TRANSACTION ADVISORY
Mani Thess Q. Pena Lee

CORPORATE SECURITY
Nestor Jason V. Camba, Jr.

C HI NA BANK I NG COR P O R AT I O N

67CORPORATE GOVERNANCE

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Name+DQV76\*LOEHUW8'HH

Designation

Directorship

Age

Year FirstElectedNo. of Years as
Director&KDLUPDQ

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68

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C HI NA BANK I NG COR P O R AT I O N

69CORPORATE GOVERNANCE

Board Diversity
In place is a Board Diversity Policy which mandates, among other criteria, thatthe Board consists of directors possessing a collective working knowledge,
educational background, and experience relevant to the Bank’s businesslandscape and operations. Furthermore, it underscores the importance of
maintaining a well-rounded mix of skills, competence, and expertise. To highlight
our dedication to diversity and operational effectiveness, the Board actively
verifies the continuing qualification of its members, both individually andcollectively. This ensures their ability to fulfill roles and responsibilities, responding
adeptly to the organization’s evolving needs within the dynamic businessenvironment and strategic direction. For enhanced diversity, our Board includes
two female Independent Directors.

BOARD DEMOGRAPHICS
AGE

17% under 65
83% 65 and above

17%
83%

GENDER

17% female
83% male

17%
83%

TENURE

50% over 20 years
50% 20 years and under

50%
50%

BOARD EDUCATION/EXPERIENCE/SKILLS

8%

8%

B.S. in MechanicalEngineering

17%
42%
33%

17%
100%

SKILLED AND
EXPERIENCED
Our directors have a collective
working knowledge in banking/operations, management, finance,
marketing/sales, investment, risk
management, accounting, credit,
anti-money laundering, internal
control and sustainability& resiliency.

70

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

B.S in Business Administration and
B.S. in Business Administration Major
in Financial Management

42%

B.S in Banking/Management/Accounting/Management Engineering

33%

B.S in Commerce and B.S. in Commerce
Major in Accounting/Finance/Business
Management

Induction and Continuing Education
2-17

Continuing education is vital to cultivating the directors’ knowledge and skills to enhancethe overall effectiveness and performance of the board. Newly-elected directors undergo anorientation program facilitated by an SEC-accredited training provider, complemented by anorientation kit containing essential documents such as the Specific Duties and Responsibilities of
Directors, Corporate Governance Manual, and relevant Board Committee Charters, among others.
All of our directors attend the mandatory annual corporate governance training facilitated by an
SEC-accredited institution to ensure they are updated with the latest regulations and industry
best practices. With the assistance of Corporate Governance Division, directors also participate
in various small-scale learning opportunities, trainings, webinars, etc., whenever available and/or
applicable.
On August 3, 2023, we conducted the Annual Chinabank Group-wide Corporate Governancetraining for our directors and key bank and subsidiary officers, organized by the Corporate
Governance Division and facilitated by the Good Governance Advocates and Practitioners of
the Philippines. The training covered topics like Ethical Decision-Making Models and Digital
Transformation: Case Studies and Success Stories.
Board Remuneration
2-19

As stipulated in Chinabank’s amended By-Laws, our directors receive a per diem of up to P10,000
for attendance at each meeting / session of the Board of Directors or of any Committee. In
accordance with Article VIII of the By-Laws, a portion of the net earnings is to be given to themembers of the Board. Executive directors get performance-related compensation based on
their performance, banking experience, position, and rank, while non-executive directors do notreceive any performance-based compensation.
In 2023, each member of the Board of Directors received the following amount as compensation:

Hans T. Sy

P7,310,000

Gilbert U. Dee

P7,430,000

Romeo D. Uyan, Jr.

P300,000

Peter S. Dee

P7,405,000

Joaquin T. Dee

P7,410,000

Herbert T. Sy

P7,155,000Harley T. Sy

P7,275,000

Jose T. Sio

P7,210,000

Margarita L. San Juan

P7,430,000

Philip S.L. Tsai

P7,430,000

Claire Ann T. Yap

P7,420,000

Genaro V. Lapez

P7,350,000

C HI NA BANK I NG COR P O R AT I O N

71

CORPORATE GOVERNANCE

Performance Evaluation
2-18

In line with the requirement for an annual
performance evaluation, the Board, all Boardlevel Committees, individual Directors, and thePresident & CEO accomplish a self-assessment
to appraise their individual effectivenessand collective performance, as well as to
identify areas for improvement. The Corporate
Governance Division summarizes the resultsof the evaluation and reports it to the Board
through the Corporate Governance Committee.
A 5-point scale rating system is used for the
self-assessment, where the lowest score is 0,
equivalent to “Poor”, and the highest score is 5,
equivalent to “Excellent”.
RATINGDESCRIPTION

0

Poor - Leading practice or principle is
not adopted in the company’s Manual of
Corporate Governance1

Needs Improvement - Leading practiceor principle is adopted in the Manual but
compliance has not yet been made2-3

Fair - Leading practice or principle isadopted in the Manual and compliancehas been made but with major deviation(s)or incompleteness4

Good - Leading practice or principle isadopted in the Manual and compliancehas been made but with minor deviation(s)or incompleteness5

Excellent - Leading practice or principle isadopted in the Manual and full compliancewith the same has been madeThe self-assessments focus on the following
key aspects:
A. For the Board as a whole:• Structure (size and composition; skills,
expertise and competencies)• Organization and function (conduct ofmeetings, quality of reporting, training
areas, reporting by committees)• Dynamics and internal culture (formal andinformal engagement)
B. For the Board Committees:• Leadership, size and composition(including skills)• Responsibilities• Quality of reporting and timelines

72

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

C. For the Individual Directors• Upholding the guiding principles and bestpractices stipulated in the Code of Ethics for
Directors• Practicing due diligence in carrying out duties
as director• Willingness to speak at the meetings• Receptiveness to other views• Constructively challenging fellow directors
and proposals and management of senior
management• Applying a strategic mindset to board• Attendance at Board and Committee meetings
D. For the President & CEO• Leadership• Cooperation and collaboration with the Board• Execution of strategies• External relations
The 2023 evaluation revealed that:• The Directors are generally satisfied with theprogress the Board has made to enhance its
effectiveness.
• The size and level of independence within
the Board and Committees are deemed
appropriate.
• The committee leadership is deemed effective
and operates on a high level of competency.
• There is strong commitment among the
Directors and the President & CEO to fulfill their
obligations.
• There is a high degree of confidence thatthe Directors and the President & CEO arecompetent to serve their roles to a highstandard.
In compliance with the SEC Code of Corporate
Governance, the results of the Board Self-Assessment
are evaluated by an external facilitator every three
years.

Retirement and Succession
We recognize the wisdom that senior directors contribute. Emphasizing theimportance of experience over mere numbers, our Board firmly rejects any form ofage discrimination. A director may remain in the Board for as long he/she continues
to be physically and mentally fit for the position and able to discharge his/her duties
in accordance with the regulatory requirements. Our By-laws provides the rules on
succession, replacement or vacancy in the Board due to retirement or any otherreason. Vacancies in the Board may be filled up through appointment or election of
the remaining directors, if still constituting a quorum; otherwise, the stockholders
shall fill such vacancy in a regular or special meeting called for such purpose. For
Independent Directors, Bank policies and practices are aligned with SEC and BSP
rules on term limit.
Corporate Secretary
Our Corporate Secretary holds a senior and strategic-level position that is vital insafekeeping the Bank’s official records and for the administrative side of the Board
and Committee meetings. The Board of Directors has full and unrestricted accessto the services of the Corporate Secretary, who is also a corporate governancegatekeeper responsible for overseeing sound board practices. The Corporate
Secretary also serves as the Board liaison, who works with, and deals fairly andobjectively with the Board, Management, stockholders, and other stakeholders.
Board Committees
2-9, 2-11, 2-12, 2-13

To carry out its mandate of good corporate governance, stewardship, and fiduciary
obligations more effectively, the Board has delegated authority to various Board
Committees which oversee certain roles and responsibilities based on theirrespective Charters:• Executive Committee has the powers of the Board, when the latter is notin session, in the management of our corporate affairs to the fullest extent
permitted under the By-Laws, the applicable laws and the Committee’sCharter. The Committee also decides on credit applications or transactions, as
endorsed by the Credit Committee (if they exceed the latter’s credit authority),
as well as other matters brought to its attention.
• Corporate Governance Committee ensures that our Corporate Governanceframework is regularly reviewed, updated, and properly implemented. It
assists the Board by ensuring compliance with laws, rules, principles, andbest practices on corporate governance, including the continuing education
program for the directors and conduct of the Board assessment.
• Audit Committee primarily oversees audit matters – mainly the evaluation of
the adequacy and effectiveness of the Bank’s internal control system, as wellas the integrity of its financial statements. It appoints, reviews and concurs
in the appointment or replacement of the Chief Audit Executive (CAE), andis responsible for ensuring that the CAE and internal audit function are freefrom interference by outside parties. It ensures that an annual review isperformed on the effectiveness of the internal audit mechanism, including
compliance with the Institute of Internal Auditors’ International Standards for
the Professional Practice of Internal Auditing and Code of Ethics and provides
oversight over Management’s activities in maintaining an adequate internal
control framework, managing credit, market, liquidity, operational, legal andother risks. It likewise ensures that internal and external auditors remain
independent and are given unrestricted access to records, properties andpersonnel, to perform their the
C HI NA BANK I NG COR P O R AT I O N

73

CORPORATE GOVERNANCE

respective audit functions. It is also responsible for the recommendation on theappointment of the CAE and the external auditor, and their removal. It has the
explicit authority to investigate any matter within its terms of reference, in orderto ensure the effectiveness and efficiency of the Bank’s internal controls.
• Compliance Committee monitors compliance with laws, rules and regulations
specifically in creating a dynamic and responsive compliance risk management
system for identifying and mitigating risks that may erode the franchise value ofthe Bank, and ensuring that Management is doing business in accordance withthe said prescribed laws, rules and regulations including policies, procedures,
guidelines and best practices.
• Risk Oversight Committee is responsible for the development and oversightof the Bank’s risk management functions, including the evaluation of theeffectiveness of the enterprise risk management framework and ensuring that
corrective actions are in place to address concerns in a timely manner. It oversees
the risk-taking activities of the Bank and warrants the continued relevance,
comprehensiveness and overall value of the institutional risk management plan.
• Nominations Committee reviews and evaluates the qualifications of all persons
nominated to the Board. Jointly with the Corporate Governance Committee, it
oversees the nomination process and evaluates the qualifications of persons
nominated to Department and Division Head positions, as well as all promotions
to Officer positions. It also reviews the qualifications of Board candidates, toensure that their qualities and/or skills are sufficient to lead and/or assist the Bankin accomplishing its vision and corporate goals, and identify if the quality of thedirectors nominated is aligned with the Bank’s strategic directions.
• Remuneration Committee provides oversight over the remuneration of senior
management and other key personnel, ensuring that compensation is consistent
with the interest of all stakeholders and the Bank’s culture, strategy and control
environment.
• Related Party Transactions Committee reviews all material related party
transactions (RPTs) to ensure they are conducted at an arm’s length. Composed
entirely of Independent Directors, the Committee oversees the proper
implementation of the RPT Policy and ensures RPTs are properly identified,measured, monitored, controlled and reported.
• Information Technology Steering Committee assists the Board of Directors infulfilling its corporate governance and oversight responsibility for the Bank’s
investments, strategy and implementation in relation to Information Technology
and Digitalization. It also oversees the IT strategy and execution of the Bank’s
subsidiaries and affiliate, to ensure that these are aligned with the overall
strategic plans for continuous value creation.
• Trust Investment Committee provides oversight functions, overall strategic
business development and financial policy directions to the Trust and AssetManagement Group. It oversees the trust, investment management and fiduciary
activities of the Bank, and ensures that they are conducted in accordance withapplicable rules and regulations, and judicious practices. Moreover, it ensuresthat prudent operating standards and internal controls are in place and thatthe Board‘s objectives are clearly understood and duly implemented by theconcerned units and personnel.
Additional details on the Committees and their charters are posted on our website atwww.chinabank.ph.

74

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTBoard and Committee Meetings
The Board of Directors champions thorough and impactful discussions in both Board and Committee
meetings. Regular Board meetings are held at least once a month, set to be every first Wednesday, toreview the Bank’s financial performance, to approve strategies, policies, and business plans, as well as toconsider other proposals and action plans which require the Board’s approval. Special Board meetings
may also be arranged to deliberate and assess other business issues and related matters that also require
Board approval.
Board and Committee meetings are conducted in accordance with the Bank’s By-Laws. Majority of theBoard constitutes quorum and a majority of the quorum is generally what is required for Board decisions.
The directors are committed to their duty by studying the materials to prepare for the meetings. Whenexigencies prevent a director from physically attending a Board or committee meeting, he/she could
join through remote communication such as videoconferencing, teleconferencing or other alternative
platforms/media that allow them reasonable opportunity to participate.
To ensure sound and objective decision making, Board materials are provided to the directors five days
before the meeting. The directors also have access to senior management, external consultants andadvisors, and the Corporate Secretary.
In 2023, each of the incumbent directors attended at least 88% of all Board meetings and 80% ofBoard-level Committee meetings.
Attendance in Board and Committee Meetings
Director

Board

Executive
Committee

Corporate
GovernanceCommittee

Audit
Committee

Compliance
Committee

Risk OversightCommittee

13 meetingsin 2023,
including
12 joint
meetings with
the Corporate
GovernanceCommittee

14 meetingsin 2023,
including
2 joint
meetings with
the Executive
Committee

No. of meetings attended
16 meetings in
39 meetings in
28 meetings
2023, including 2023, including
in 2023,
the organization- 2 joint meetings
including 12
al meetingwith Risk
joint meetings
Oversight
with the CompliCommittee
ance Committee
and 16 joint
meetings with
the Nominations
Committee
Hans T. Sy

13 meetings in
2023

14/16
Chairman

35/39
Chairman

16/16

39/39

Romeo D. Uyan, Jr.

12/12

27/28 bPeter S. Dee

16/16

39/39

Joaquin T. Dee

16/16

39/39

Herbert T. Sy

15/16

Harley T. Sy

16/16

Jose T. Sio

16/16

Margarita L.
San Juan

16/16

28/28
Chairwoman

Philip S.L. Tsai

16/16

18/18 c5/5 dClaire Ann T. Yap

16/16

26/28

13/13
Chairwoman

Genaro V. Lapez

16/16

8/10 d7/8 cGilbert U. Dee
a

12/13

13/13

a

Elected as Director, President and CEO effective April 1, 2023c

Member from April 20, 2023b

Member from April 1, 2023d

Member up to April 19, 2023

13/13
Chairwoman

14/14

4/4 d

14/14
Chairman
12/14

8/9 c

C HI NA BANK I NG COR P O R AT I O N

75

CORPORATE GOVERNANCE

Attendance in Board and Committee Meetings
Director

Nominations
Committee

Remuneration
Committee

Related Party
Transactions
Committee

Information
Technology
Steering
Committee e

Trust Investment
Committee f

2 meetings in 2023

11 meetingsin 2023

2/2
Chairman

8/8

No. of meetings attended
16 meetings in
2023, jointlywith theCorporate
GovernanceCommittee

2 meetings in 2023

12 meetings in
2023

Hans T. Sy
Gilbert U. Dee
Romeo D. Uyan, Jr.aPeter S. Dee

11/11
ChairmanJoaquin T. Dee
Herbert T. Sy

2/2

Harley T. Sy

11/11

Jose T. Sio
Margarita L. San Juan

a

11/11
16/16
Chairwoman

Philip S.L. Tsai

10/10cClaire Ann T. Yap

15/16

Genaro V. Lapez

5/6d

12/12
2/2

12/12

2/2
Chairman

12/12
Chairman

2/2

Elected as Director, President and CEO effective April 1, 2023b

Member from April 1, 2023c

Member from April 20, 2023d

Member up to April 19, 2023e

The other non-director members as of February 29, 2024 are:f

The other non-director member is Mary Ann T. Lim

Patrick D. Cheng, Jose L. Osmena, Jr., Clara C. Sy, Aloysius C. Alday, Jr. and Delfin Jay M. Sabido IX

76

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

2/2

Upholding high governance standards
2-6, 2-15, 2-16, 2-19, 2-23, 205-1

We are resolute in upholding good governance and have establishedthe policies that reinforce this commitment. Our corporate governancepolicies are posted in Chinabank’s intranet facility for our employees’ strict
compliance, and on our corporate website for stakeholders’ information andguidance.
• Insider Trading: The policy prohibits Chinabank directors, officers, and employees who
have knowledge of material facts or changes in the affairs of the Bank which have not yet
been publicly disclosed, including any information likely to affect the share price of theBank’s stock, from directly or indirectly engaging in financial transactions. Any transactions
by the Directors and principal officers involving the Bank’s shares are required to bedisclosed within three business days from the date of the transaction.
• Conflict of Interest: In accordance with our Code of Ethics, conflict of interest (COI)
between the Bank and its directors, officers and employees should be avoided at all times.
However, should a conflict arise, the interest of the Bank must always prevail. Employees are
not permitted to have or be involved in any financial interests that are in conflict or appear
to be in conflict with their duties and responsibilities to the Bank. They are likewise barredfrom engaging in work outside of the Bank unless with duly-approved permission, as well
as work that lies in direct competition with the Bank.
To strengthen prevention measures for COI, our directors are mandated to accomplish the
COI and RPT disclosure form after their election and after gaining knowledge of an actualor potential COI situation.
• Related Party Transactions: The policy requires the thorough review of all transactions withrelated parties as having been conducted in the ordinary course of business, at arm’s length
basis, at fair market prices, and upon terms not less favourable to the Bank versus terms
offered to others. The RPT Framework serves as a guide for the Chinabank Group in dealing
with related parties. All material RPTs are reviewed and vetted by the RPT Committee
before they are endorsed to the Board for approval and are ratified by the stockholders
during the Annual Stockholders’ Meeting. To prevent conflict of interest, no director isallowed to participate in the discussion, deliberation, and approval of a transaction where
he is a related party. Specific materiality thresholds on a per transaction basis have been
established. The Bank’s RPT policy is kept relevant and aligned with recent regulatory
issuances.
• Below is a summary of material RPTs and outstanding loan balances in 2023. Details havebeen disclosed through the submission of required periodic reports to the BSP and/or SEC.
General Summary of Material RPTs
TOTAL
AMOUNT/1

TOTAL OUTSTANDING
BALANCE/2

Chinabank Group

P14.0 B-

SM GroupP298.8 B$23.5 M

P7.0 B

Other Related Parties

P206.9 B$46.3 M

P2.6 BRELATED PARTY

1/
2/

Covers all transactions
For loan transactions approved in 2023 (with availments)
C HI NA BANK I NG COR P O R AT I O N

77CORPORATE GOVERNANCE• Anti-Bribery and Anti-Corruption: The Bank does not tolerate any form of bribery
and corruption. As established in the Code of Ethics, Directors, officers, andemployees are prohibited from offering, promising, or giving a financial or otheradvantage to any person or party, including public officials, with the intention of
inducing or rewarding improper performance by them of their duties or to facilitate
Bank transactions. They are likewise prohibited from accepting any financial or otheradvantage as a reward for participating in any act prejudicial to the Bank or any of its
stakeholders.
In 2023, a total of 7,996 employees attended the training on Code of Ethics andother related courses/sessions, in which anti-bribery and anti-corruption were also
discussed.
• Anti-Money Laundering Governance: To ensure bank-wide compliance with theAnti-Money Laundering and Counter-Terrorism and Proliferation Financing (AML/
CTPF) laws, rules and regulations, we established a Money Laundering and Terrorist
Financing Prevention Program (MTPP), approved by the Board of Directors. It is
designed in accordance with the Bank’s corporate structure and risk profile and isreviewed and updated regularly to incorporate recent regulatory issuances andapproved amendments. The MTPP provides guidelines to combat money launderingand terrorism and proliferation financing activities, and promotes high ethicaland professional standards, to keep the Bank from being utilized as a channel forsuch. The Compliance Group oversees the Bank’s compliance with the MTPP and
AML laws and regulations, and manages the AML System to ensure the effective
monitoring of transactions and the timely and accurate reporting of covered andsuspicious transactions to the Anti-Money Laundering Council (AMLC).
The MTPP is disseminated to all officers and staff of the Bank who are obligatedby law and by the Bank’s policies to implement the program. Mandatory AML
trainings and seminars are also conducted to update the Bank’s directors, officers
and staff of the latest AML/CFT requirements and to continuously inform them of
their obligations under the AMLA. The Bank has also adopted an AML e-Learning
platform to efficiently expand the reach of AML training nationwide. A total of 5,019
employees completed the mandatory AML e-learning course in 2023.

ANTI MONEY LAUNDERING AND COUNTER- TERRORISM
AND PROLIFERATION FINANCING

78

Customer Due
Diligence

AML Compliance
OfficerTraining

System Internal
Control

Independent
Testingprevents
criminals/
terrorists fromusing the Bank
to disguise theirillicit activities

oversees thecompliance with
the MTPP and
AML laws andregulations

maintains
continuous
adherence to
the AML/CTPF
requirements

establish
internal policies
and procedures
appropriate to
the risk profile of
the Bank

to identify any
deficiencies
in the Bank’s
process

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT• Whistleblowing: Without fear of any retaliation, Chinabank employees, customers, shareholders,and any third-party service providers may report questionable or illegal activity, unethical conduct,fraud or any other malpractice by mail, phone or e-mail. The identity of the whistleblower is kept
confidential and all reports are acted upon based on their merits. If determined sufficient in formand substance, the disclosure is referred to the appropriate unit/s for further investigation. If thereport is found to be baseless, the whistleblower is informed of the status. Although the CCGO is theprimary driver in the implementation of the Whistleblowing Policy, the policy allows reporting of any
disclosure to the Chief Audit Executive, Chief Risk Officer, and the HRG Head.
The Bank's Whistleblowing mechanism is under the Audit Committee – an independent control
committee that ensures that a system is in place for the independent investigation, appropriate
follow-up action and subsequent resolution of complaints. It is composed of non-executive directors,
majority of whom are independent directors.
Whistleblowing disclosures may be reported directly to Human Resources Group, Audit Group, Risk
Management Group or the CCGO:
Chief Compliance and Governance Officer
Tel. No.: 8885-5731
Mobile No.: 0947-9960573
Fax No.: 8864-5007
Email: whistle_chib@yahoo.com.ph
A whistleblower disclosure form is also available at www.chinabank.ph.
• Creditors: The policy focuses on honoring agreements with and respecting the rights of Chinabank’s
creditors—depositors and bondholders—including complying with post-issuance regulatory
requirements like continuing disclosures and tax compliance.
• Suppliers and Contractors: We advocate fair market practices and is committed to dealing only with
suppliers and contractors who have proven integrity and good track record. They must also undergo
and pass our accreditation process before any contract is awarded to them. Third parties’ reputation,
capability, reliability, and actual performance are carefully evaluated, taking into consideration
standards of objectivity, impartiality, and equal opportunity. Vendor bids are evaluated based on
quality, price, service, and overall value to the business, ensuring that we prevent any favoritism orconflicts of interest. We also have an outsourcing policy in place.
• Senior Management Appointment and Succession: We exercise due diligence in selecting
members of Senior Management. Guided by our Succession Management Program, successors
for key roles are identified, vetted, and readied accordingly. A formal process is followed to ensurethat a candidate chosen for a Senior Management role is fit and proper for said key position,
taking into account his/her experience in finance / banking or related field, and integrity, among
other requirements. The process involves a talent profile review by Senior Management led by the
President through an interview, aside from the Human Resources Group conducting the reference
background check. Furthermore, the talent profile is also reviewed by the Nominations and/or
Corporate Governance Committees as applicable. If found suitable, the candidate is endorsed to the
Executive Committee / Board of Directors for final appointment approval.
• Executive Compensation: Our remuneration policy is anchored on the principle of fair, transparent,
and performance-based reward to encourage employees’ long-term commitment, to support theBank’s long-term outlook and plans, and to address the challenge of attracting and retaining the besttalents. Remuneration for senior officers varies according to rank, function, and performance. Regularsalary reviews are conducted to ensure market competitiveness of total remuneration.

C HI NA BANK I NG COR P O R AT I O N

79

CORPORATE GOVERNANCE

In 2023, the Bank paid a total of P144.8 million to the five most senior executives*:
Vice Chairman Gilbert U. Dee, President and CEO Romeo D. Uyan Jr., Chief Finance
Officer Patrick D. Cheng, and Executive Vice Presidents Jose L. Osmena Jr. andLilian Yu.

SALARYBONUSES & OTHER
COMPENSATION

TOTAL

2023

P69,179,206

P75,651,275

P144,830,581

2022

P65,233,046

P70,881,725

P136,114,771

YEAR*Due to the competitiveness and high demand for talent in the banking industry, individually
disclosing the remuneration of the top five officers, as per corporate governance best practices,would be disadvantageous to Chinabank.

•

Dividends: We are committed to providing shareholders with an equitable shareof profits. Cash dividends are declared at a payout ratio of approximately thirty
percent (30%) of the net income of the prior year, subject to the conditions andlimitations set forth in more detail in the dividend policy statement containedin the Corporate Governance Manual. Dividend payouts, as part of our capitalmanagement policy and process, are reviewed and calibrated annually, taking
into account the economic and business environment, the Bank’s risk profile andappetite, and trends in capital markets and regulatory environment to achieve thefollowing objectives:•••

Delivering to stockholders satisfactory returns and enhanced shareholder
value
Healthy capital adequacy ratios to comply with regulatory capitalrequirements and maintain strong credit rating
Capital buffer to support business growth and pursue business opportunities

Cash Dividend

2019

2020

2021

2022

2023

Regular

8.8%

10%

10%

10%

10%

Special

-

-

-

5%

9%

• Disclosure and Transparency: We are committed to providing stakeholders
with timely and accurate information to facilitate understanding of Chinabank’strue financial condition, operations, and corporate governance practices. All
material information about the Bank’s financial condition and operations aredisclosed in accordance with applicable rules and regulations. Major and marketsensitive information, including but not limited to dividend declarations, joint
ventures and acquisitions, sale and disposition of significant assets, as well as
financial and non-financial information that may affect or influence investor
decision are promptly disclosed through the Philippine Stock Exchange’s (PSE)
Electronic Disclosure Generation Technology (EDGE) which are then madeavailable publicly on the PSE’s website. We comply with reporting requirements,
such as the publication of quarterly financial statements and a comprehensive
annual report for our annual stockholders’ meeting. Our Investor and Corporate
Relations Group conducts or participates in analyst and investor briefings. Our
corporate website is regularly updated to include the latest news and information
about the Chinabank Group.

80

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTEnforcing effective internal controls
A robust control system is fundamental to protecting assets, minimizing risks,
promoting accountability, and ensuring the integrity of financial data. Our internal
control framework spans financial, operational, information technology, compliance,risk management, and audit controls, policies, and systems to ensure safe and soundbusiness practices.
We have adopted the three-lines-of-defense governance and risk management framework,with each line playing a distinct role within our control environment. The first line ofdefense is risk management by the business lines, wherein each business unit engages
in risk-taking within the established range of risk appetite, and promptly implements risk
control at the on-site level when a risk arises. The second line of defense is Compliance andRisk Management. The Compliance Group is in charge of the compliance risk management
system to identify and mitigate risk that may erode the franchise value of the Bank, while
the Risk Management Group (RMG) acts as a restraint function for the risk taking of thefirst line of defense, and supervises and provides guidance regarding the risk governancesystem. RMG reports on the status of risk management to the Board of Directors throughthe Risk Oversight Committee. The third line of defense is the Audit Group which validates
the effectiveness and appropriateness of the group-wide risk governance system andprocesses from an independent standpoint.
Compliance
Compliance risk management forms part of the Bank’s overall and fundamental businessactivities and is upheld in all levels of the organization. The Board is responsible for
ensuring that appropriate policies are in place to manage and mitigate compliancerisks, while Management is responsible for implementing these policies and undertakes totimely address critical issues to preserve the franchise value of the Bank.
Vital to the implementation of a Group-wide culture of compliance is our ComplianceGroup which designs and manages the implementation of our compliance program acrossthe Group. It provides assistance to the Board in the discharge of its governance function
to protect the franchise value of the Bank as well as the interests of its various stakeholders.

Three Lines of Defense

First Line

Compliance andRisk Management

Second LineBusiness Lines

Third Line

Audit

C HI NA BANK I NG COR P O R AT I O N

81

CORPORATE GOVERNANCE

Driving and managing group-wide compliance is the Bank’s Chief Compliance and Governance Officer(CCGO) who functionally reports to the Compliance and the Corporate Governance Committees of theBoard, and administratively to the Bank’s President and CEO. As the second-line of defense in the overall
control structure, the compliance function is independent from business operations. In order to covervarious areas, the Compliance Group was structured to be composed of six divisions/departments:
Regulatory Compliance, Anti-Money Laundering, Corporate Governance, IT Compliance, Subsidiaries
Oversight and Associated Person.
It endeavors to drive a strong compliance culture within the Group, thru a dynamically-responsive
compliance program and corresponding activities such as the preparation and enhancement of policies
and procedures, risk assessment of the institution, conduct of independent testing and promotionof compliance awareness. Compliance also ensures that employees at all levels are kept informed ofchanges in the laws and regulations through regular trainings and dissemination of the latest and important
advisories and regulatory issuances. The Compliance function and program are subject to independent
review by the Audit Group.
Risk Management
We believe that risks are part of doing business, and that effective risk management, rather than outrightrisk avoidance, is crucial to success. This mindset has enabled us to maintain highly profitable andstable operations while undertaking only well-calculated risks for commensurate returns. The Board isaccountable for risk oversight, but everyone in the Bank is responsible for risk management. The Board
sets the tone for a sound risk culture, Management handles the implementation of the Enterprise Risk
Management Framework and day-to-day risk management to ensure alignment with the establishedrisk appetite and limits, and employees at all levels share the responsibility of managing risks. Throughtrainings and communication, effective risk management is reinforced as a group-wide discipline.
The Risk Management Group (RMG), headed by the Chief Risk Officer (CRO), performs overall risk
management, identifies and evaluates group-wide risks, creates a risk management process, formulates
recovery strategies, and sets risk limits in accordance with the Board-approved risk management policies.
RMG applies the principles of sound governance to the identification, assessment, monitoring, andmitigation of risks. Risk identification and assessment are embedded in our work processes and criticalbusiness systems to ensure that decision-making is based on valid data. RMG distinguishes the different
types of risk and takes an integrated approach, guided by supporting frameworks and policies which are
regularly reviewed and enhanced, to effectively manage the Bank’s financial, nonfinancial, and emerging
risks.
• Credit Risk
During the normal course of lending and credit underwriting, the Bank is exposed to credit risk
which is the risk of financial loss where a customer or counterparty fails to meet their financial
obligations to Chinabank. The policies for managing credit risk are determined at the business levelwith specific procedures for different risk environments and business goals. Risk limits and thresholds
have been established to monitor and manage credit risk from individual counterparties and/or
group of counterparties, countries, and industry sectors. Periodic assessments are also conducted toreview the creditworthiness of our counterparties. We measure credit risk for large corporates andmedium-sized entities through the Internal Credit Risk Rating System (ICRRS). For smaller businesses,
retail and individual loan accounts, we use the Borrower Credit Score (BCS) for credit scoring. For
housing loans, auto loans, and credit cards, we use the Transunion Bureau score in conjunction withother credit acceptance criteria. We also have a rating system for Philippine universal, commercial,
thrift, rural, and cooperative banks. In addition, we use a Sovereign Risk Rating Model to assess thestrength of the country rated with reference to its economic fundamentals, fiscal policy, institutional
strength, and vulnerability to extreme events.
The performance of our rating models and scorecards are regularly monitored. Over the years,
we have partnered with third party consultants such as Moody’s Analytics and Teradata for model
validation, model recalibration, and knowledge transfer projects. Internally, periodic review of theperformance of the models are conducted by running statistical metrics to ensure that they continue
to be a reliable tool in our credit evaluation process.

82

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT• Market and Liquidity Risk
Operating in a market that is dynamic and often unpredictable, Chinabank is exposed tomarket risk— the risk of changes in market factors, such as foreign exchange, interest rates
and equity prices negatively impacting earnings and capital. The Bank is also exposed toliquidity risk, which is the current and future risk arising from a company’s inability to meet its
financial obligations when they come due, and to interest rate risk in the banking book whichis the risk to interest income from a mismatch between the duration of assets and liabilities.
The objective of our market risk policies is to obtain the best balance of risk and return while
meeting our stakeholders’ requirements. On the other hand, our liquidity risk policies centeron maintaining adequate liquidity at all times to be in a position to meet all obligations as
they fall due. Market risk, interest rate risk, and liquidity risk exposures are managed througha risk management framework comprising of limits and triggers monitoring and reporting
processes. Established limits and triggers are set and reviewed in accordance with the risk
appetite of the Board. Market risk exposures are measured and monitored through reports
from our Market Risk Management System. We use Historical Simulation Value-at-Risk (VaR)
approach for all treasury traded instruments, including fixed income bonds, foreign exchange
swaps and forwards, interest rate swaps, and equity securities. Meanwhile, liquidity andinterest rate risk exposures are measured and monitored through the Maximum Cumulative
Outflow (MCO) and Earnings-at-Risk (EaR) reports from our Asset and Liability Management(ALM) system. Based on the latest annual validation of Internal Audit, our internal risk
measurement models –VaR, EaR, and MCO – remain appropriate and adequate.
• Operational Risk
In the course of conducting our daily business activities, operational risk may arise which
can result from breakdowns in internal procedures, people, and systems. We believe that
operating soundly and innovating nimbly are vital to sustaining the faith and credit of our
stakeholders. Our Operational Risk Management Framework provides guidelines that
operational workflows sustain the Bank’s growth and profit objectives. Our framework
advocates a culture of risk recognition, risk control and risk management. It includes policies,
processes, procedures, and various tools, which includes Risk Assessment, Control SelfAssessment, Loss Incident Reporting System and reporting of Key Risk Indicators to manage
operational risks.
• Business Continuity Management (BCM)
Adequate advanced planning and preparation is essential to maintaining business functionsor quickly resuming after a crisis or disaster. In place is a robust BCM to ensure the availabilityof crucial infrastructure, functions, and systems to minimize the effects of potentiallydisruptive events. We continually strengthen the ability of our operations to recover fromsignificant business disruptions that may include natural calamities, pandemics, and disasters
through the development, review, and testing of our resilience plans.
• Information Technology (IT) Risk
Technology has become an essential part of business operations by streamlining systems,
increasing efficiency, and enhancing customer experience. As a business that is heavily
reliant on technology, IT risk—any threat that can stem from equipment failure to targetedcyber attacks—is a core concern. Our IT risk infrastructure centers on ensuring the soundnessof our IT operations, the strength of our IT Security in the face of increasing cyber threat
landscape, and the orderliness of implementation of IT projects in line with Chinabank’s
ongoing digital transformation. The Chinabank Board is responsible for the Bank’s
technology upgrade strategy, investments and successful execution. The Bank’s IT Steering
Committee (ITSC) assists the Board in fulfilling its corporate governance and oversight
responsibility in relation to investments, strategy and implementation of technology. Our
ITSC includes the participation of three directors who oversee the Bank’s IT function as well as
members of management who oversee business execution and business support functions.
Governance functions participate in ITSC meetings in advisory capacity. The ITSC aggregates
IT concerns from all over the enterprise to ensure concerted implementation of the Group’s IT
Strategy. The allied subsidiary and affiliate enterprises ensure their respective Boards, Senior
Managements, and Risk functions remain aware of all businesses they raise before the ITSC.

C HI NA BANK I NG COR P O R AT I O N

83

CORPORATE GOVERNANCE• Trust Risk
With the extensive development of the financial markets, we continue to place
great importance on managing all the risks specific to our Trust business, including
legal, strategic, and reputational risks. Trust risk is managed in accordance with the
Guidelines in Strengthening Corporate Governance and Risk Management Practices
on Trust, Other Fiduciary Business, and Investment Management Activities (BSP
Circular 766), as well as the Bank’s internal Trust Risk Management Guidelines.
• Integrated Stress Test
RMG has an Integrated Stress Testing (IST) framework to evaluate the Bank’s overallvulnerabilities on specific events or crisis and gauge the ability to withstand stressevents, in addition to the silo stress tests. The IST covers all the major risk areasof the Bank and complements the Pillar I Plus Approach which is the basis for theInternal Capital Adequacy Assessment Process (ICAAP) capital charge under normal
condition.
Internal Audit
Internal Audit is a vital element in maintaining the Bank’s long-term resilience and solidity.
It functions as an independent assurance mechanism that enhances the effectiveness andefficiency of governance, risk management, and control processes. Through comprehensive
assurance reviews, valuable insights are derived, leading to actionable recommendations
that reinforce controls, mitigate risks, and drive operational enhancements. Moreover,internal audit plays a pivotal role in supporting the Board and Management in making
informed decisions that bolster and improve the Bank’s overall performance.
The Audit Group, under the guidance of the Chief Audit Executive, meticulously manages
the internal audit function while upholding unwavering independence and objectivity. It
maintains a steadfast commitment to effectively carry out its audit responsibilities, ensuringthat internal audit activities remain impervious to any form of interference or obstruction.
Audit Group derives its authority to fulfill its mandate from the Board-approved Charter,
which serves as a robust and comprehensive roadmap to carry out its responsibilities with
precision and accountability.

84

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTIn 2023, the Audit Group has undergone organizational changes, including its elevation
to a Group-level entity and the establishment of new division and department. Thesechanges reflect a strategic shift to transform the Internal Audit function into a solutionsfocused component of the Bank, with the aim of improving operational efficiency within thegroup. In line with this, the Audit Group has also started outsourcing certain Head Officeengagements to expand its audit coverage and tap into specialized expertise from external
service providers. Additionally, the Audit Group has implemented the latest Internal Audit
Competency Framework developed by the Institute of Internal Auditors (IIA) to ensure thecontinuous development of internal auditors’ knowledge, skills, and experience.
External Audit
Our external auditor fulfills a critical function in ensuring that our financial statements areaccurate and presented in accordance with the Philippine Financial Reporting Standards(PFRS). SyCip Gorres Velayo & Co. (SGV & Co.) has been Chinabank’s external auditor forover 40 years, with the signing partners rotated every seven years in compliance with existing regulations.
The audit and audit-related fees below, taken up and approved by the Audit Committee,
cover services rendered for the performance of the audit or review of the Bank's financial
statements, including the combined financial statements of Trust Group. The Board/Audit
Committee likewise discussed, approved, and authorized to engage the services of SGV &Co in non-audit work for independent vulnerability assessment and penetration testing in
2022, and independent validation of votes in the annual stockholders’ meeting in both 2023
and 2022.

Year

Audit and
Audit-Related Fees*

All Other Fees

2023

P10,773,803

P134,400

2022

P9,498,720

P974,400*Includes tax fees related to the audit of tax accounting and compliance

SGV & Co. had confirmed that they did not have any disagreement with Management that
could be significant to the Bank’s financial statements or their auditor’s report. Further, there
are no matters that in their professional judgment may reasonably be thought to bear on
their independence or that they gave significant consideration to in reaching the conclusionthat independence has not been impaired.

C HI NA BANK I NG COR P O R AT I O N

85

CORPORATE GOVERNANCE

Stock information
Chinabank common shares are listed and traded on the Philippine Stock Exchange under thesymbol “CHIB”. The Bank‘s common shares were valued at P30.85 per share as of December 29,
2023 (last trading day), and at P36.00 per share as of March 13, 2024 (latest practicable tradingdate).
The Bank has an authorized capital stock of P33 billion divided into 3.3 billion shares with a parvalue of P10.00 per share. As of February 29, 2024, there were approximately 1,824 holders of
2,691,340,312 common shares.
Equity Ownership by Nationality
Nationality

Number of Stockholders

Filipino

Number of Shares

Percentage

1,748

1,967,257,347

73.10

Non-Filipino (PCD)

1

717,994,442

26.68

Chinese49

3,485,501

0.13

American18

2,403,317

0.09

Australian

1

2,114

0.00

British2

97,631

0.00

Canadian

1

1,963

0.00

French1

13,4000.00

Spanish

1

107

0.00

Taiwanese

2

84,490

0.00

1,824

2,691,340,312

100.00TOTAL

Top 20 Holders of Chinabank Common Shares
Name of Stockholder

Number of Shares

1. PCD Nominee Corporation (Non-Fil.)

717,994,442

26.68

2. SM Investments Corporation

605,304,553

22.49

3. PCD Nominee Corporation (Filipino)

437,993,318

16.27

4. Sysmart Corporation

416,405,357

15.47

5. JJACCIS Development Corporation

62,320,926

2.32

6. CBC Employees Retirement Plan

53,278,951

1.98

7. Joaquin T. Dee &/or Family

37,861,404

1.41

8 . GDSK Development Corporation

31,458,583

1.17

9 . Suntree Holdings Corporation

24,138,332

0.90

10.Syntrix Holdings, Inc.

23,500,711

0.87

11.Hydee Management & Resource Corp.

14,334,603

0.53

12.The First Resources Mgt. & Sec. Corp.

5,964,229

0.22

13. Kuan Yan Tan’s Charity (Phil.), Inc.

5,941,277

0.22

14. Reliance Commodities, Inc.

5,662,648

0.21

15. Robert Y. Dee, Jr.

5,569,499

0.21

16. Ansaldo, Godinez & Co., Inc.

4,664,350

0.17

17. Michael John G. Dee

3,963,468

0.15

18. Cheng Siok Tuan3,864,332

0.14

19. Rosario Chua Siu Choe

3,631,816

0.14

20. Kristin Dee Belamide

3,520,559

0.13

2,467,373,358

91.68

TOTAL

86

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Percentage

Record and Beneficial Owners Holding 5% or More of Voting Securities
102-5
Name, Address of Record
Owner & Relationshipwith Issuer

Title of Class*

Name of Beneficial
Owner & Relationshipwith Record Owner

Citizenship

Numberof Shares
Held

Non-Filipino

717,994,442

26.68

Percentage

CommonPCD Nominee Corporation*
29th Floor BDO Equitable Tower
8751 Paseo de Roxas, Makati City
Stockholder

Various stockholders /clients

CommonSM Investments Corporation
10th Floor L.V. Locsin Bldg., 6752
Ayala Avenue, Makati City
Stockholder

PCD Nominee
Corporation
Stockholders

Filipino

605,304,553

22.49

CommonPCD Nominee Corporation*
29th Floor BDO Equitable Tower
8751 Paseo de Roxas, Makati City
Stockholder

Various stockholders /clients

Filipino

437,993,318

16.27

CommonSysmart Corporation
10th Floor L.V. Locsin Bldg.,
6752 Ayala Avenue, Makati City
Stockholder

Sy Family
Sycamore PacificCorporation
Stockholders

Filipino

416,405,357

15.47

Based on the list provided by the Philippine Depository & Trust Corporation to the Bank’s transfer agent, Stock
Transfer Service, Inc., as of December 31, 2023, The Hongkong and Shanghai Banking Corporation Limited(396,732,386 shares or 14.74%) and BDO Securities Corporation (191,921,819 shares or 7.13%) hold 5% ormore of the Bank’s securities under the names of various beneficial owners. The beneficial owners, such as theclients of PCD Nominee Corporation, have the power to decide how their shares are to be voted.

Stockholdings of Bank Directors
Name of Director

Position

Citizenship

Number & Nature of
Ownership:
Direct (D)/Indirect (I)

Percentage

5,014,801 (D)

0.186

2,866,781 (I)

0.107

Hans T. Sy

ChairmanFilipino

Gilbert U. DeeVice Chairman

Filipino

838,006 (D)0.031

Romeo D. Uyan, Jr.

Director, President and CEO

Filipino

1,545,500 (D)0.057Peter S. Dee

Director

Filipino

301,305 (D)

0.011

43,315,883 (D)1.610

8,371,029 (I)0.311

Joaquin T. Dee

Director

Filipino

Herbert T. Sy

Director

Filipino

735,431 (D)

0.027

Harley T. Sy

Director

Filipino

897,254 (D)0.033Jose T. Sio

Director

Filipino

3,517 (D)0.000

Margarita L. San Juan

Lead Independent Director

Filipino

95,238 (D)0.004

Philip S.L. Tsai

Independent Director

Filipino

2,000 (D)

0.000

Claire Ann T. Yap

Independent Director

Filipino

9,100 (D)0.000

Genaro V. Lapez

Independent Director

Filipino

100 (D)

0.000

TOTAL

63,995,945

2.378

C HI NA BANK I NG COR P O R AT I O N

87CORPORATE GOVERNANCE

Trading In Company Shares By Bank Directors As Of December 31, 2023
Director

Shareholdings As Of January
1, 2023

Hans T. Sy
Gilbert U. Dee
Romeo D. Uyan, Jr.*
Peter S. Dee
Joaquin T. Dee

Number Of Shares Disposed

Shareholdings As Of
December 31, 2023

Number Of Shares Acquired

5,298,862-

2,582,720

838,006--

7,881,582
838,006500-

1,545,000

1,545,500

301,305--

301,305

51,736,912

50,000-51,686,912

Herbert T. Sy

735,431--735,431

Harley T. Sy

897,254--897,254

Jose T. Sio

3,517

-

-

3,517

Margarita L. San Juan

95,238--95,238

Philip S. L. Tsai

2,000

-

-

2,000

Claire Ann T. Yap

100

-

9,000

9,100

Genaro V. Lapez

100

-

-

100
63,995,945*Elected and appointed as Director, President and Chief Executive Officer efective April 1, 2023.

Trading in Company Shares by Bank Principal Officers* as of December 31, 2023
Shareholdings as of January 1,
2023

Number of Shares Dispoed

Patrick D. Cheng

620,256-

620,256

Jose L. Osmeña, Jr.

10,000-10,000100-

2,977,104-

Principal Officer

Magnolia Luisa N. Palanca
Clara C. Sy
Lilian Yu

Shareholdings as ofDecember 31, 2023

100
1,087,300

4,064,404

400

-

400

10,700-10,700Angela D. Cruz

1,641,476-

52,400 **1,693,876

James Christian T. Dee

2,911,081-

50,000 **2,961,081

26,760

-

100

-

-

-

Ananias S. Cornelio III

Delia Marquez
Christopher Ma. Carmelo Y. Salazar
Jose Luis A. Alcuaz, Jr. a
Cristina P. Arceo
Gerard T. Dee
Antonio Jose S. Dominguez

26,760100
11,00011,000

1,200

-

1,200

12,279,464 ***-12,279,464

100

-

100

Maria Luz B. Favis

1,300

-

1,300

Madelyn V. Fontanilla

1,400

-

1,400

Jerry Ron T. Hao

300

-

300

Mary Ann T. Lim

200

-

200

Belenette C. Tan

7,708

-

7,708

Stephen Y. Tan

4,046

-

4,046

Layne Y. Arpon

11,832-

11,832

Love Virgilyn T. Bakingh

-

-

1,200

1,200

Richard S. Borjae--

10,30010,300Marie Carolina L. Chua

38,343-

Melissa F. Corpus

1,500

-

Domingo P. Dayrod

-

-

500

500

Gemma B. Deladiaj

-

-

5,430

5,430

Rhodin Evan O. Escolar

38,343
1,500

400

-

Pablito P. Floresb

-

-

1,400

1,400

Cesare Edwin M. Garciae

-

-

1,300

1,300

Cristina F. Gotuacok

-

-

3,300

3,300

Emir Francis D. Javillonare

-

-

4,000

4,000

Angelyn Claire CC. Liaoc--

363,600

363,600300

Regina Karla F. Libatiquef
Mandrake P. Medina

-

-

1,200

-

400

300
1,200

Jocelyn T. Pavoni

-

-

300

Mani Thess Q. Pena-Leec

-

-

200

200

Francisco Eduardo A. Sarmientof

-

-

8,480

8,480

Marisol M. Teodoro

23,923-

Maria Rosanna Catherina L. Testa

7,340

-

Esmeralda R. Vicenteg

-

-

2,900

2,900

Carina L. Yandocj--

31,06831,068700-

Michelle Y. Yap-Bersales*First Vice President and up, in addition to the Vice Chairman and President and CEO**50,000 shares are owned and held by Senior Vice President Angela D. Cruz and Senior Vice
President James Christian T. Dee, jointly with family members***Under his own name or held jointly with family membersaPromotion to First Vice President I effective July 18, 2022 and acquired shares In 2023b
Promotion to First Vice President I effective January 01, 2023c
Promotion to First Vice President I effective March 16, 2023
d
Promotion to First Vice President I effective April 16, 2023

88

Number of Shares
Acquired

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

23,923
7,340

Promotion to First Vice President I effective May 16, 2023
Promotion to First Vice President I effective June 16, 2023
Promotion to First Vice President I effective July 16, 2023
hPromotion to First Vice President I effective August 16, 2023
i
Promotion to First Vice President I effective October 16, 2023
jPromotion to First Vice President I effective December 16, 2023k
Promotion to First Vice President I effective January 16, 2023
e
f

g

300

700

Conglomerate Map
As of December 31, 2023

SMIC Subsidiary

Subsidiaries of SMIC
Subsidiary
Non-Financial Allied Subsidiary

Special Purpose Corporation

C HI NA BANK I NG COR P O R AT I O N

89Board of

Directors
HANS T. SY
Chairman
Non-Executive Director
Age and Nationality:
68, Filipino
Year First Elected / No. of Years on the
Chinabank Board:
1986 / 38 years
Present Directorships:• Director, SM Prime Holdings, Inc.* (SMPH)• Adviser to the Board, SM Investments
Corporation* (SMIC)• Chairman - Board of Trustees,
National University, Inc. (NUI)
Relevant Working Experience:• Former President, SMPH
• Former Vice Chairman, Chinabank• Held key positions in several companies
engaged in banking, real estate development,mall operations, and leisure/entertainment
Academic Qualification:
BS Mechanical Engineering, De La Salle University* Listed on the Philippine Stock Exchange

GILBERT U. DEE
Vice Chairman
Executive Director
Age and Nationality:
88, Filipino
Year First Elected / No. of Years on the
Chinabank Board:
1969 / 55 years
Present Directorships:• Chairman, Union Motor Corporation• Chairman, CBC Properties and Computer
Center, Inc. (CBC-PCCI)
Relevant Working Experience:• Former Chairman, Chinabank
Academic Qualification:• MBA, University of Southern California• BS Banking, De La Salle University

90

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORTROMEO D. UYAN, JR.

PETER S. DEE

Director, President & Chief Executive Officer
Executive Director

Director
Non-Executive Director

Age and Nationality:
61, Filipino

Age and Nationality:
82, Filipino

Year First Elected / No. of Years on the
Chinabank Board:
2023 / 1 year

Year First Elected / No. of Years on the
Chinabank Board:
1977 / 47 years

Present Directorships:• Vice Chairman, China Bank Capital Corporation(Chinabank Capital)• Director, China Bank Savings, Inc. (Chinabank Savings)• Director, China Bank Securities Corporation(Chinabank Securities)

Present Directorships:• Independent Director, City & Land
Developers, Inc.*• Independent Director, Cityland
Development Corporation*• Director & President, CBC-PCCI• Director, Commonwealth Foods, Inc.,• Director, GDSK Development Corporation• Director, Makati Curb Holdings Corporation• Director, Great Expectation Holdings, Inc.
• Director, The Big D Holdings Corporation

Relevant Working Experience:• Former Chief Operating Officer, Chinabank• Former President, Chinabank Capital• Former Managing Director & Co-Head of Asia
Special Situations and Leveraged CapitalMarkets, UBS AG - Singapore Branch• Managing Director & Head of Asia Credit
Products, Barclays Capital
Academic Qualifications:• MBA, Johnson Graduate School ofManagement - Cornell University• BS Management Engineering, Ateneo deManila University

Relevant Working Experience:
Former President & Chief Executive Officer, Chinabank
Academic Qualification:
BS Commerce, De La Salle University / Universityof the East
* Listed on the Philippine Stock Exchange

C HI NA BANK I NG COR P O R AT I O N

91

HERBERT T. SY
Director
Non-Executive Director
Age and Nationality:
67, Filipino
Year First Elected / No. of Years on the
Chinabank Board:
1993 / 31 years

Present Directorships:• Director, SMPH*• Chairman, Supervalue, Inc.
• Chairman, Super Shopping Market, Inc.
• Chairman, Sondrik, Inc.,• Chairman, Sanford Marketing Corp.
• Director, NUI

Relevant Working Experience:
Involved in companies engaged in food retailing,
investment, real estate development, and mall
operations
Academic Qualification:
BS Management, De La Salle University* Listed on the Philippine Stock Exchange

JOAQUIN T. DEE

HARLEY T. SY

Director
Non-Executive Director

Director
Non-Executive Director

Age and Nationality:
88, Filipino

Age and Nationality:
64, Filipino

Year First Elected / No. of Years on the
Chinabank Board:
1984 / 40 years

Year First Elected / No. of Years on the
Chinabank Board:2001 / 23 years

Present Directorships:• Chairman, JJACCIS Development Corporation• Chairman, Enterprise Realty Corporation• Director, Suntree Holdings Corporation

Present Directorships:
Director, SMIC*

Relevant Working Experience:
Former Vice President, Wellington Flour Mills
Academic Qualification:
BS Commerce, Letran College92

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Relevant Working Experience:
Co-Vice Chairman and Treasurer, SM Retail, Inc.
Academic Qualification:
BS Commerce - Finance, De La Salle University* Listed on the Philippine Stock Exchange

JOSE T. SIO

MARGARITA L. SAN JUAN

Director
Non-Executive Director

Lead Independent Director
Non-Executive Director

Age and Nationality:
84, Filipino
Year First Elected / No. of Years on the
Chinabank Board:
2007 / 17 years
Present Directorships:• Chairman Emeritus, SMIC*• Director, Atlas Consolidated Mining andDevelopment Corporation*• Independent Trustee, Far Eastern
University, Inc.*• Adviser, BDO Unibank, Inc.*• Adviser, Belle Corporation*• Adviser, Premium Leisure Corporation*• Director, NLEX Corporation• Director, Ortigas Land Corporation• Director, Carmen Copper Corporation• Director, First Asia Realty Development
Corporation• Chairman, President and Trustee,
SM Foundation, Inc.
Relevant Working Experience:
Former Senior Partner of SyCip Gorres Velayo& Co. (SGV)

Age and Nationality:
70, Filipino
Year First Elected / No. of Years on the
Chinabank Board:
2017 / 7 years
Present Directorships:• Independent Director, Chinabank Capital• Independent Director, Chinabank Insurance
Brokers, Inc. (Chinabank Insurance)• Independent Director, Resurgent Capital(FISTC-AMC) Inc. (RCI)
Relevant Working Experience:• Former Independent Director, Chinabank Savings• Former SVP & Account Management Group Head,
ChinabankAcademic Qualifications:• Advanced Bank Management Program, Asian
Institute of Management• BS Business Administration - Financial
Management, University of the Philippines

Academic Qualifications:• Certified Public Accountant• MBA, New York University• BS Commerce - Accounting, University of
San Agustin* Listed on the Philippine Stock Exchange

C HI NA BANK I NG COR P O R AT I O N

93PHILIP S.L. TSAI

CLAIRE ANN T. YAP

Independent Director
Non-Executive Director

Independent Director
Non-Executive Director

Age and Nationality:
73, Filipino

Age and Nationality:
68, Filipino

Year First Elected / No. of Years on the
Chinabank Board:
2018 / 6 years
Present Directorships:• Independent Director, Chinabank Savings• Independent Director, Chinabank Capital• Independent Director, Chinabank Insurance
Relevant Working Experience:
Former FVP & Metro Manila South Region Head,
ChinabankAcademic Qualification:• MBA, Roosevelt University• BS Business Administration, Universityof the Philippines

94

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Year First Elected / No. of Years on the
Chinabank Board:
2020 / 4 years
Present Directorships:• Independent Director, Chinabank Savings• Independent Director, Chinabank Securities• Independent Director, Chinabank Capital• Independent Director, RCI
Relevant Working Experience:
Former SVP & Head of Global Service Centre,
Global Payments Process Centre, Inc.
Academic Qualifications:• Certified Public Accountant• BS Accountancy, De La Salle University

GENARO V. LAPEZRICARDO R. CHUA

Independent Director
Non-Executive Director

Advisor to the Board

Age and Nationality:
66, Filipino
Year First Elected / No. of Years on the
Chinabank Board:
2021 / 3 years
Present Directorships:• Independent Director, Chinabank Savings• Independent Director, Chinabank Securities
Relevant Working Experience:
Former EVP, Union Bank of the Philippines
Academic Qualifications:
BS Management Engineering, Ateneo de Manila
University

Age and Nationality:
73, Filipino
Year First Elected / No. of Years as
Chinabank Advisor:
2017 / 7 years
Present Directorships:• Chairman, Chinabank Savings• Chairman, Chinabank Capital• Director, CBC-PCCI
Relevant Working Experience:• Former President & Chief Executive Officer,
Chinabank• Former Chief Operating Officer, Chinabank
Academic Qualifications:• Certified Public Accountant• MBA, Asian Institute of Management• BS Business Administration - Accounting,
University of the East

C HI NA BANK I NG COR P O R AT I O N

95Management

Committee

ROMEO D. UYAN, JR.

PATRICK D. CHENG

ALOYSIUS C. ALDAY, JR.

JOSE L. OSMEÑA, JR.

President and Chief Executive Officer

Consumer Banking Segment HeadMAGNOLIA LUISA N. PALANCA
Financial Markets Segment Head96

20 2 3 ANNUAL FINANC IAL AND SUSTAINABILIT Y REPORT

Chief Finance Officer

Retail Banking Business Co-Segment Head

CLARA C. SY

LILIAN YU

DELIA MARQUEZ

DELFIN JAY M. SABIDO IX

Retail Banking Business Co-Segment HeadCentralized Operations Group Head

Institutional Banking Segment Head

Chief Innovation and Transformation Officer

CHRISTOPHER MA. CARMELO Y. SALAZAR
Treasurer & Treasury Group HeadC HI NA BANK I NG COR P O R AT I O N

97Management

Team

As of March 1, 2024

Vice Chairman
Gilbert U. Dee
3UHVLGHQW &KLHI([HFXWLYH2IƓFHU
Romeo D. Uyan Jr.
Executive Vice Presidents
Aloysius C. Alday Jr.
Patrick D. ChengJose L. Osmena Jr.
Magnolia Luisa N. Palanca
Clara C. Sy
Lilian Yu
Senior Vice Presidents
Ananias S. Cornelio III
Angela D. CruzJames Christian T. Dee
Jeruel N. Lobien
Delia Marquez'HOƓQ-D\06DELGR,;
Christopher Ma. Carmelo Y. Salazar
Manuel C. Tagaza
First Vice Presidents
Jose Luis A. Alcuaz Jr.
Cristina P. Arceo
Layne Y. Arpon
Love Virgilynn T. Baking
Richard S. Borja
Marie Carolina L. Chua
Melissa F. Corpus
Tani Michelle M. Cruz
Domingo P. Dayro Jr.
Francis Andre Z. De Los Santos
Mary Grace R. De Ocampo
Gerard Majella T. Dee
Gemma B. Deladia
Antonio Jose S. Dominguez
Rhodin Evan O. Escolar
Luellia S. Espine
Maria Luz B. Favis
Gerald O. Florentino
Pablito P. Flores
Madelyn V. Fontanilla
Cesare' Edwin M. Garcia
Cristina F. Gotuaco
Jerry Ron T. Hao
Emir Francis D. Javillonar
Angelyn Claire C.C. LiaoRegina Karla F. Libatique
Karyn C. Lim
Mary Ann T. Lim
Eduardo S. Martinez
Mandrake P. Medina
Alfredo Manuel E. Moreno
Jocelyn T. Pavon
Mani Thess Q. Pena-Lee
Francisco Eduardo A. Sarmiento

98

Belenette C. Tan
Stephen Y. Tan
Marisol M. Teodoro
Maria Rosanna Catherina L. Testa
Melanee I. Torrelino
Bernhard Aloysius G. Tsai
Harvey L. Ty
Ma. Gingili A. Valenzuela
Esmeralda R. Vicente
Carina L. Yandoc
Michelle Y. Yap-Bersales
Vice Presidents
Eugenio Cesar U. Abella III
Baldwin A. Aguilar
Ma. Hildelita P. Alano
Jay Angelo N. Anastacio
Juan Emmanuel B. Andaya
Faye Theresa S. Babasa
Yvonne Lou O. Bada
Jose Julian E. Baduria Jr.
Aerol Paul B. Banal
Francis Nicolo D. Basilio
Ma. Luisa O. Baylosis
Bryan P. Benedicto
Pamela T. Benito
Francis Vincent S. Berdan
Yasmin I. Biticon
Betty L. Biunas
Agnes C. Calimbahin
Victor Geronimo S. CaloJonathan C. Camarillo
Jeannette H. Chan
Aileen Paulette S. De Jesus
Aimee-Cel A. De Leon
Leilani B. Elarmo
Therese G. Escolin
Marlon F. Galang
Rafael B. Gamad Jr.
Marissa G. Garcia
Pamela Ann B. Gogna
Ma. Cristina C. Hernandez
Marlon B. Hernandez
Grace Y. Ho-RVHƓQD$QQD7-XVWLQLDQR
Ma. Arlene Mae G. Lazaro
Shirley C. Lee
Elizabeth Anne C. Libutan
Christine Marie D. Lim
Mary Ann L. Llanes
B. Franco C. Loyola
Zahra D. Lumbris
Jennifer Y. Macariola
Katherine N. Manguiat
Ordon P. Maningding
Ronald R. Marcaida
Sheila Jane F. Medrero
Tadeos R. Natividad
Gil P. Navelgas

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

Jason R. Pangilinan
Joseph Vincent L. Pangilinan
Ma. Victoria G. Pantaleon
Josephine D. Paredes
Ma. Cristina T. Perez
Marilou P. Que
William Wayne T. Quesang
Alvin A. Quintanilla
Rhoel T. Reyes
Nina May Q. Reynoso
5HQD05LFR3DPƓOR
Louie Mark P. Rono
.DUOD+5XƓQR
Julie Ann P. Santiago
Alejandro F. Santos
Edgardo M. Santos
Maria Graciela C. Santos
Danilo T. Sarita
Ernanie V. Silvino
Chona C. Solano
Jennifer O. Soriano
Irene C. Tanlimco
Gianni Franco D. Tirado
Michael C. Tomon
Ma. Edita Lynn Z. Trinidad
Virginia Y. Uy
9DOHULH0DULŴRU*9DOHUD
Aileen Marie A. Vallesteros
Clarissa Maria A. Villalon
Charon B. Wambangco
Hanz Irvin S. Yoro
Mary Joy L. Yu
Senior Assistant Vice Presidents
Emmanuel L. Abesamis
Agnes O. Adviento
Rommel M. Agacita
Ma. Chimene C. Alvarez
Genie N. Ang
Ronaldo d. Angco
Ma. Cristina G. Antonio
Luis R. Apostol
Maria Marissa A. Auditor
Michelle M. Baroro
Roberto P. Basilio
Cherie Germaine T. Bautista
Eric Von D. Baviera
0DULH&KULVWLQH5%ODQFDŴRU
Benedict P. Blaza
Maria Charmina B. Bonifacio
Christine Z. Briones
Lester Augustus G. Callope
Sherry Anne F. Canillas
Norman Roque V. Causing
Eleanor S. Cervantes
Ma. Jeanette D. Cuyco
Ricardo J. De Guzman III
Reylenita M. Del Rosario
Marc Patrick A. Dela Paz

Ma. Lourdes L. Dela VegaJohn Pierre D. Delizo
Katherine Jean S. Diamante
Bernardita M. Ducusin
Eleanor Q. Faigao
Michelle A. Farcon
Eileen M. Felipe
James Royce C. Galang
Irene A. Go See It
Dennis S. Go II
Virginia G. Go
Juni H. Gotamco
Hector B. Holgado
Gladys Antonette Marcel P. Isidro
Maria Margaret U. Kua
Maria Melinda O. Lo
Glenn B. Lotho
Chris Jurald C. Mancelita
Jose G. Maravilla III
Godofredo L. Martinez
Edgar S. Neri Jr.
Cranston Hans S. Ng
Rosalie F. Ocampo
Remedios Emilia R. Olivar
Paul Albert P. Olivas
Eleanor C. Ona
Lilian B. Orlina
Sheilah B. Paglinawan
Marco Antonio V. Panajon
Jefrey D. Pangilinan
Mary Y. Pe&KULVWLQH*3HQDƓHO
Ma. Lourdes T. Pineda
George Michael F. Punzalan
1RUHHQ63XULƓFDFLRQDavid L. Quianzon
Victor M. Quismundo
Rosauro M. Ricardo
Eleanor D. Rosales
Zyra Mae B. Salvador
Rizza A. Salvino
Anita Y. Samala
Joseph Lloyd A. San Andres
Charmaine V. Santos
Hilarion Z. Silayan III
Maria Cecilia D. So
Andrea A. Tan
Jaydee C. Tan
Joanne Christie U. Tan
Stephanie Y. Tan
Susan Y. Tang
Michaela L. Teng
Arnel Ferdinand R. Tiglao
Karen W. Tua
Jeff Michael T. Ty
Norman P. Ureta
David Andrew P. Valdellon
Jonathan T. Valeros
Anthony Ariel C. Vilar

Catherine D. Yabes
April Marie O. Yago
Maria Carolina U. Yonzon
Assistant Vice Presidents
Maria Salome P. Angala
Juan Carlos R. Arcilla Jr.
Michelle T. Arriola
Manuel S. Aurora Jr.
Katherine Y. Barra
Ma. Christina L. Billedo
Ma. Victoria T. Bondoc
Alalyn J. Buragay
Regina A. Cabling
Noel D. Cachero
Maria Primitiva Carmela D. Canceran
Hermenegildo G. Carino
Jacqueline A. Chiong Maya
April Jean P. Chiong
Ma. Cecilia M. Chiu
Yvette O. Chua
Rolando V. Cinco
Maria Rosalie F. Cipriano
Daisy C. Co
Marc Victor Y. Co
Susan V. Co
Dianne Camille C. Condez
Carmela Ysabelle J. Cordero
Marlene Precious W. Cu
Genevive B. De Jesus
Anna Therese T. Dela Cruz
Anna Liza D. Dela Pena
Johann Dale J. Diaz
Warren D. Elbo
Ronaldo H. Francisco
Angeliza D. Gacutan
Nerisa U. Garcia
Gilbert M. Geronimo
Alvin C. Go
Amy A. Go
Desiree Jade T. Go
Marites B. Go
John Melvin D. Gomez
Ramoncito M. Gomez
Maria Violeta M. Gonzales
George D. Gutierrez
Ruth D. Holmes
Christine Erika S. Isada
Marvin Ray M. Isleta
Vivian T. Jasmin
Airene Cristina G. Ko
Gian Carlo D. Lacambra
Alvin M. Lacanlalay
Lorelie Y. Lacson
Jericho D. Lagustan
Teresa A. Li
Ma. Giselle A. Liceralde
Kerwin G. Lim
Jesse R. Linsangan

Pamela Junno B. Lising
Ma. Gladys C. Liwag
Marissa S. Macaraig
Mary Grace D. Macaraig
Kristian Ren Dorothy B. Manzano
Fe Angeles T. Marcaida
Rhea D. Matela
Guillermo Guillermo F. Medina, Jr.
Maricar M. Medina
Karen S. Mendoza
Gene Razieg B. Modequillo
Chrisrey D. Muyco
Roel A. Nagano
Ricardo N. Natividad
Wendy G. Ngo
Maria Josefa R. Nisce
Maynard G. Obispo
Roy M. Obregon
Richard Raymond P. Ong
Carmela S. Ongsiapco
Maricor B. Paez
Melissa L. Pascual
Vivienne Christine C. Perez
Hazel Marie A. Puerto
Claire L. Ramirez
Gina K. Reyes
Maria-Catleya C. Reyes
Pamela D. Rillon
Arlene A. Romo
Jouzl Marie C. Rona
Marita P. Roxas
Marie Christine S. Sagrado-Cabato
Lawrence S. Salido
Christian B. Salita
Roberto J. Sanchez Jr.
Edellina C. Santiago
Joanne A. Serrano
John Albert P. Sia
Maria Teresa P. Silva
Joseph Adrien B. Soriao
Julie A. Sy
Jason T. Tamayo
Anna Liza M. Tan
Joyce Y. Tan
Marie Roanne D. Tan
Cristina C. Ty
Arlene T. Uy
Ramiro Mateo D. Valdivia
Eleanore B. Villacrucis
Jet Joseph T. Villaroman
Hermarie Liza U. Villegas
German Laurie O. Yap
Maria Soccoro Perpetua L. Yapson
Marie Claire B. Young
Yerkes S. Yu
Joaquin Miguel O. Zavala

C HI NA BANK I NG COR P O R AT I O N

99Recent

AwardsChinabank•

5-Golden Arrow Award
Institute of Corporate Directors
ASEAN Corporate Governance Scorecard
Golden Arrow Recognition•

Outstanding Wealth Management Service
IRUWKH$IŴXHQWPrivate Banker International
33rd Annual Global Wealth Awards 2023 -•Big Shift Champion of the Year
Excellence in Customer Engagement
Awards 2023

•

•

100

2023 Employer of the Year
People Management Association of thePhilippines
60th PMAP Annual ConferenceAwards Night••

Chinabank Savings

Best Managed Fund of the Year for
Dollar Long-Term Bond (FVPL) category Chinabank Dollar Fund
CFA Society Philippines
Best Managed Funds 2023
Best Managed Fund of the Year for Peso
Medium-Term Bond (FVPL) category Chinabank Intermediate Fixed-Income
Fund
CFA Society Philippines
Best Managed Funds 2023
Cesar E.A. Virata Award - Bank Category
Philippine Dealing System
2024 PDS Annual Awards•

Top Brokering Participant for RetailTransactions
Philippine Dealing System
2024 PDS Annual Awards•

Top Fixed-Income Dealing Participant
Philippine Dealing System
2024 PDS Annual Awards•

Top 2 Corporate Securities Market Maker
Philippine Dealing System
2024 PDS Annual Awards•

Top 3 Fixed-Income Brokering Participant
Philippine Dealing System
2024 PDS Annual Awards

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

Outstanding Private Sector Partner
Department of Education
Partners’ Appreciation & Recognition•

Partner in Empowerment, Advocacy,
and Commitment to Excellence (PEACE)Award
Metrobank Foundation, Inc.
MBFI 45th Anniversary

Chinabank CapitalGold Award for Product Innovation Chinabank Automatic Debit Arrangement
and Direct Debit Arrangement
Infosys Finacle
Innovation Awards 2023

•

•

-

•

Best Bond Adviser - Domestic
The Asset
Triple A Country Awards for Sustainable
Finance 2024•

Best IPO - Repower Energy Development
Corp.'s P1.05 billion IPO
The Asset
Triple A Country Awards for Sustainable
Finance 2024•

Best Equity Deal - ACEN Corp.'s P25
billion Preferred Shares Offering
The Asset
Triple A Country Awards for Sustainable
Finance 2024•

Best Corporate Bond - SM Prime
Holdings, Inc.'s P33.3 billion Fixed Rate
Bonds
The Asset
Triple A Country Awards for Sustainable
Finance 2024•

Best Acquisition Financing - Aboitiz
Equity Ventures' P17.54 billion Fixed
Rate Bonds
The Asset
Triple A Country Awards for Sustainable
Finance 2024•

Top 3 Corporate Issue Manager/Arranger
Investment House Category
Philippine Dealing System
2024 PDS Annual Awards

Financial

Statements

Disclosure on Capital Structure 102
and Capital Adequacy
Report of the Audit Committee 112
Statement of Management’s 114
Responsibility for Financial
Statements
Independent Auditor’s Report 115
Management’s Discussion 118
on Result of Operations andFinancial Condition
Balance Sheets 119
Statements of 121
Comprehensive Income
Statements of Changes in Equity 122
Statements of Cash Flows 126

C HI NA BANK I NG COR P O R AT I O N

101

Disclosure on Capital Structure andCapital Adequacy
Capital Fundamentals
We believe that Chinabank can only achieve sustainable growth by maintaining strong capital fundamentals. Major
business initiatives are undertaken with the appropriate capital planning which also takes into consideration constraints
and changes in the regulatory environment. This is necessary to ensure that the Bank’s commercial objectives are equallyaligned with its ability to maintain a capital position at par with the industry. The Board and Senior Management recognizes
that a balance should be achieved with respect to Chinabank’s earnings outlook vis-à-vis capital fundamentals that can take
DGYDQWDJHRIJURZWKRSSRUWXQLWLHVZKLOHPDLQWDLQLQJVXIƓFLHQWFDSDFLW\WRDEVRUEVKRFNV
Risk-based capital components, including deductions, on a parent and consolidated basis:

Qualifying Capital (Basel III)In PhP Million

Consolidated

Parent Company
2023

Common Equity Tier 1 Capital
Paid-up common stock

26,913.40

26,913.40

Additional paid-in capital

17,201.51

17,201.51

Retained Earnings

103,297.89

100,523.48

Other Comprehensive Income

101.53101.53

Minority Interest

39.16

-

Less: Retained Earnings Appropriated for General Loan Loss Provision(2,865.42)(2,865.42)

Less: Unsecured DOSRI(271.21)(269.50)

Less: Deferred Tax Assets(6,705.79)(5,698.23)(563.47)(222.84)(3,399.13)(726.32)

Less: Goodwill
Less: Other Intangible Assets/HVV'HƓQHG%HQHƓW3HQVLRQ)XQG$VVHWV/LDELOLWLHV(680.98)(665.59)

Less: Investment in Subsidiary(462.89)(19,301.49)(1,329.48)(1,329.48)(76.72)(74.52)

131,198.42

113,586.54--

131,198.42

113,586.54

7,631.42

6,587.90

7,631.42

6,587.90

138,829.84

120,174.44/HVV6LJQLƓFDQW0LQRULW\,QYHVWPHQW
Less: Other Equity Investment
Total CET 1 Capital
Additional Tier 1 Capital
Total Tier 1 Capital
Tier 2 Capital
General Loan Loss Provision
Total Tier 2 Capital
Total Qualifying Capital102

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTQualifying Capital (Basel III)

Consolidated

In PhP Million

Parent Company
2022

Common Equity Tier 1 Capital
Paid-up common stock

26,912.88

26,912.88

Additional paid-in capital

17,200.76

17,200.76

Retained Earnings

87,206.51

84,589.38

Other Comprehensive Income

1,242.33

1,242.33

132.43-

Minority Interest
Less: Retained Earnings Appropriated for General Loan Loss Provision(2,852.96)(2,852.96)

Less: Unsecured DOSRI(265.66)(263.47)

Less: Deferred Tax Assets(4,390.77)(3,508.04)(563.47)(222.84)

Less: Goodwill
Less: Other Intangible Assets(3,404.39)(721.31)/HVV'HƓQHG%HQHƓW3HQVLRQ)XQG$VVHWV/LDELOLWLHV(141.53)(135.82)

Less: Investment in Subsidiary(406.89)(15,777.74)/HVV6LJQLƓFDQW0LQRULW\,QYHVWPHQW(983.24)(983.24)

Less: Other Equity Investment(69.61)(67.42)

119,616.41

105,412.50--

119,616.41

105,412.50

General Loan Loss Provision

6,682.77

6,124.93

Total Tier 2 Capital

6,682.77

6,124.93

126,299.18

111,537.44

Total CET 1 Capital
Additional Tier 1 Capital
Total Tier 1 Capital
Tier 2 Capital

Total Qualifying Capital

Qualifying Capital (Basel III)In PhP Million

Consolidated

Parent Company
2021

Common Equity Tier 1 Capital
Paid-up common stock

26,912.88

26,912.88

Additional paid-in capital

17,200.76

17,200.76

Retained Earnings

71,826.21

69,209.08

Other Comprehensive Income

631.16631.16

Minority Interest

103.77-(2,165.00)(2,165.00)(32.53)(32.16)(4,769.44)(4,034.91)(563.47)(222.84)

Less: Retained Earnings Appropriated for General Loan Loss Provision
Less: Unsecured DOSRI
Less: Deferred Tax Assets
Less: Goodwill
Less: Other Intangible Assets(3,429.01)(768.44)/HVV'HƓQHG%HQHƓW3HQVLRQ)XQG$VVHWV/LDELOLWLHV(68.89)-Less: Investment in Subsidiary(330.53)(13,959.10)/HVV6LJQLƓFDQW0LQRULW\,QYHVWPHQW(796.52)(796.52)

Less: Other Equity Investment(122.40)(120.21)104,396.99

91,854.70--

104,396.99

91,854.70

General Loan Loss Provision

5,807.27

5,463.97

Total Tier 2 Capital

5,807.27

5,463.97

110,204.26

97,318.67

Total CET 1 Capital
Additional Tier 1 Capital
Total Tier 1 Capital
Tier 2 Capital

Total Qualifying Capital

C HI NA BANK I NG COR P O R AT I O N

103Risk-based capital ratios:Basel III

Consolidated

Parent Company
2023

In PhP Million
CET 1 capital

147,553.49

144,739.92

Less regulatory adjustments(16,355.08)(31,153.38)

Total CET 1 capital

131,198.42

113,586.54

Additional Tier 1 capital
Total Tier 1 capital
Tier 2 capital--

131,198.42

113,586.54

7,631.42

6,587.90

Total qualifying capital

138,829.84

120,174.44

Risk weighted assets

860,219.70

742,637.06

CET 1 capital ratio

15.25%

15.30%

Tier 1 capital ratio

15.25%

15.30%

Total capital ratio

16.14%

16.18%

Basel III

Consolidated

Parent Company
2022

In PhP Million
CET 1 capital

132,694.92

129,945.35

Less regulatory adjustments(13,078.51)(24,532.84)

Total CET 1 capital

119,616.41

105,412.50

Additional Tier 1 capital
Total Tier 1 capital
Tier 2 capital--

119,616.41

105,412.50

6,682.77

6,124.93

Total qualifying capital

126,299.18

111,537.44

Risk weighted assets

793,551.56

700,446.57

CET 1 capital ratio

15.07%

15.05%

Tier 1 capital ratio

15.07%

15.05%

Total capital ratio

15.92%

15.92%

Basel III

Consolidated

Parent Company
2021

In PhP Million
CET 1 capital

116,674.78

113,953.88

Less regulatory adjustments(12,277.79)(22,099.18)

Total CET 1 capital

104,396.99

91,854.70--

104,396.99

91,854.70

Additional Tier 1 capital
Total Tier 1 capital
Tier 2 capital

104

5,807.27

5,463.97

Total qualifying capital

110,204.26

97,318.67

Risk weighted assets

699,547.39

624,981.80

CET 1 capital ratio

14.92%

14.70%

Tier 1 capital ratio

14.92%

14.70%

Total capital ratio

15.75%

15.57%

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTThe regulatory Basel III qualifying capital of the Group consists of Common Equity Tier 1 capital (going concern
FDSLWDO ZKLFKFRPSULVHVSDLGXSFRPPRQVWRFNDGGLWLRQDOSDLGLQFDSLWDOVXUSOXVLQFOXGLQJFXUUHQW\HDUSURƓWRWKHU
comprehensive income and minority interest less required deductions such as unsecured credit accommodationsWR'265,GHIHUUHGLQFRPHWD[RWKHULQWDQJLEOHDVVHWVJRRGZLOOGHƓQHGEHQHƓWSHQVLRQIXQGDVVHWVOLDELOLWLHVDQG
investment in subsidiaries. The other component of regulatory capital is Tier 2 capital (gone-concern capital), which
includes general loan loss provision. A capital conservation buffer of 2.5% comprised of CET 1 capital is likewise imposedin the Basel III capital ratios.

)XOOUHFRQFLOLDWLRQRIDOOUHJXODWRU\FDSLWDOHOHPHQWVEDFNWRWKHEDODQFHVKHHWLQWKHDXGLWHGƓQDQFLDOVWDWHPHQWVLV
presented below in (PhP million):

Consolidated
2023

2022

Qualifying
CapitalReconciling
Items

AuditedFinancial
Statements

Qualifying
CapitalReconciling
Items

AuditedFinancial
Statements

Common stock

26,913-

26,913

26,913-

26,913

Additional paid-in capital

17,201-

17,201

17,201-

17,201Retained earnings

103,298(2,606)

105,904

87,207(1,800)89,007

102

(101)

203

1,242

(147)

1,389

Other comprehensive income
Non-controlling interest

39

(37)

76

132

63

69

Deductions(16,355)(16,355)-(13,079)(13,079)-

7LHU &(7 FDSLWDO7RWDOHTXLW\

131,198(19,099)

150,297

119,616(14,963)

134,579

7,632

7,632

-

6,683

6,683

-

138,830(11,467)

150,297

126,299(8,280)134,579

Tier 2 capital
7RWDOTXDOLI\LQJFDSLWDO7RWDOHTXLW\Parent Company
2023

2022

Qualifying
CapitalReconciling
Items

AuditedFinancial
Statements

Qualifying
CapitalReconciling
Items

AuditedFinancial
Statements

Common stock

26,913-

26,913

26,913-

26,913

Additional paid-in capital

17,201-

17,201

17,201-

17,201Retained earnings

100,524(5,380)105,904

84,589(4,418)89,007

102

(101)

203

1,242

(147)

1,389

Deductions(31,153)(31,153)-(24,533)(24,533)-

7LHU &(7 FDSLWDO7RWDOHTXLW\

113,587(36,634)

150,221

105,412(29,098)

134,510

Other comprehensive income

Tier 2 capital
7RWDOTXDOLI\LQJFDSLWDO7RWDOHTXLW\Capital Requirement in
PhP Million

6,587

6,587

-

6,125

6,125

-

120,174(30,047)

150,221111,537(22,973)

134,510

Consolidated

Parent

2023

2022

2023

2022

Credit Risk

76,145.12

69,505.45

65,648.31

61,222.73

Market Risk

1,436.49

2,830.88

1,392.07

2,835.83

Operational Risk

8,440.36

7,018.83

7,223.34

5,986.10

Total Capital Requirements

86,021.97

79,355.16

74,263.71

70,044.66

C HI NA BANK I NG COR P O R AT I O N

105

Credit Risk
2QEDODQFHVKHHWH[SRVXUHVQHWRIVSHFLƓFSURYLVLRQVDQGQRWFRYHUHGE\&50 LQ3K3PLOOLRQ 

December 2023
Consolidated
On-Balance Sheet Assets

ParentExposures, net of
6SHFLƓF3URYLVLRQV

Exposures not
Covered by CRM

Exposures, net of
6SHFLƓF3URYLVLRQV

Exposures not
Covered by CRM

17,585.99

17,585.99

12,981.97

12,981.97

Cash on Hand
Checks and Other Cash Items

82.11

82.11

79.33

79.33

Due from BSP

84,267.77

84,267.77

72,967.45

72,967.45

Due from Other Banks

18,218.24

18,218.24

17,000.05

17,000.05

Financial Assets at FVPL

10.81

10.81

-

-

Financial Assets at FVOCI

107,785.17

107,785.17

95,008.70

95,008.70

Investment Securities at Amortized Cost

383,707.89

382,626.57

376,933.53

375,852.21

Loans and Receivables

808,538.74

781,582.50

697,166.61

680,225.08

Loans and Receivables arising from
Repurchase Agreements

12,635.37

12,635.37

8,989.23

8,989.23

Sales Contract Receivables

1,285.29

1,285.29

203.82203.82

Real and Other Properties Acquired

2,596.14

2,596.14

829.96829.96

Other Assets

19,368.20

19,368.20

14,633.56

14,633.56

1,456,081.72

1,428,033.35

1,296,805.02

1,278,771.35

Total On-Balance Sheet Assets

December 2022
Consolidated
On-Balance Sheet Assets

Exposures not
Covered by CRM

Exposures, net of
6SHFLƓF3URYLVLRQV

Exposures not
Covered by CRM

13,671.94

13,671.94

10,017.29

10,017.29

78.51

78.51

73.63

73.63

Due from BSP

106,784.36

106,784.36

92,743.27

92,743.27

Due from Other Banks

13,056.26

13,056.26

11,530.01

11,530.01

Cash on Hand
Checks and Other Cash Items

Financial Assets at FVPL

10.89

-

10.89

-

Financial Assets at FVOCI

43,758.24

43,758.24

41,574.59

41,574.59

Investment Securities at Amortized Cost

361,202.92

360,114.08

355,143.78

354,054.94

Loans and Receivables

738,711.36

711,749.65

650,027.42

633,975.15

Loans and Receivables arising from
Repurchase Agreements

14,799.28

14,799.28

12,831.54

12,831.54

Sales Contract Receivables

1,187.85

1,187.85

181.28181.28

Real and Other Properties Acquired

2,551.07

2,551.07

686.20686.20

Other Assets
Total On-Balance Sheet Assets

106

ParentExposures, net of
6SHFLƓF3URYLVLRQV

22,208.94

22,208.94

18,058.59

18,058.59

1,318,021.63

1,289,960.19

1,192,878.50

1,175,726.50

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTDecember 2021
Consolidated
On-Balance Sheet Assets

ParentExposures, net of
6SHFLƓF3URYLVLRQV

Exposures not
Covered by CRM

Exposures, net of
6SHFLƓF3URYLVLRQV

Exposures not
Covered by CRM

15,809.59

15,809.59

13,581.16

13,581.16

Cash on Hand
Checks and Other Cash Items

78.33

78.33

71.80

71.80

Due from BSP

124,003.69

124,003.69

114,388.01

114,388.01

Due from Other Banks

10,532.76

10,532.76

9,386.15

9,386.15

Financial Assets at FVPL

9.96

-

9.96

-

Financial Assets at FVOCI

28,908.58

28,908.58

26,742.03

26,742.03

Investment Securities at Amortized Cost

244,449.13

243,453.17

238,544.43

237,548.47

Loans and Receivables

635,911.71

614,656.08

569,853.32

557,001.47

Loans and Receivables arisingfrom Repurchase Agreements

17,328.61

17,328.61

15,800.32

15,800.32

924.31

924.31214.68214.68

Sales Contract Receivables
Real and Other Properties Acquired

2,277.59

2,277.59

221.64221.64

Other Assets

19,275.03

19,275.03

13,925.02

13,925.02

1,099,509.30

1,077,247.76

1,002,738.51

988,880.74

Total On-Balance Sheet Assets

Credit equivalent amount for off-balance sheet items, broken down by type of exposures (in PhP million):
2023

2022

Consolidated

Off-balance Sheet Assets

Notional
Principal
Direct Credit Substitutes

ParentCreditEquivalent-

Notional
Principal

2021

Consolidated

CreditEquivalent

Notional
Principal

ParentCreditEquivalent

Notional
Principal

Consolidated

CreditEquivalent

Notional
Principal

ParentCreditEquivalent

-

-

-

-

-

-

-

Notional
Principal--

CreditEquivalent-Transaction-related contingencies

25,205.62

12,602.81

25,122.94

12,561.47

17,329.43

8,664.72

17,245.15

8,622.58

26,183.61

13,091.8

26,089.65

13,044.83

Trade-related contingencies
arising from movementof goods

5,202.29

1,040.46

5,193.62

1,038.72

6,832.71

1,366.54

6,825.71

1,365.14

3,866.81

773.36

3,862.96

772.59Other commitments (which can
322,277.46
be unconditionally cancelled
at any time by the bank without
prior notice)-320,658.32-

252,069.02-

250,614.58-

242,928.59-

242,391.06-

13,643.27

350,974.89

13,600.19

276,231.17

10,031.26

274,685.45

9,987.72

272,979.01

13,865.17

272,343.68

13,817.42

Total Notional Principal andCredit Equivalent Amount352,685.38

December 2023
Standardized Approach

Consolidated
Notional Principal

Interest Rate Contracts

ParentCredit Equivalent

Notional Principal

Credit Equivalent

500.000.11

500.000.11

301,566.20

3,377.23

301,566.20

3,377.23

Equity Contracts

-

-

-

-

Credit Derivatives

-

-

-

-

302,066.20

3,377.34

302,066.20

3,377.34

Exchange Rate Contracts

Total Notional Principal andCredit Equivalent AmountC HI NA BANK I NG COR P O R AT I O N

107December 2022
Standardized Approach

Consolidated
Notional Principal

ParentCredit Equivalent

Notional Principal

Credit EquivalentInterest Rate Contracts

1,000.00-

1,000.00-

Exchange Rate Contracts

159,912.49

2,039.92

159,912.49

2,039.92

Equity Contracts

-

-

-

-

Credit Derivatives

-

-

-

-

160,912.49

2,039.92

160,912.49

2,039.92

Total Notional Principal andCredit Equivalent Amount

December 2021
Standardized Approach

Consolidated
Notional Principal

ParentCredit Equivalent

Notional Principal

Credit EquivalentInterest Rate Contracts

2,172.98

12.11

2,172.98

12.11

Exchange Rate Contracts

46,799.69

864.7946,799.69

864.79Equity Contracts

-

-

-

-

Credit Derivatives

-

-

-

-

48,972.67

876.9048,972.67

876.90Total Notional Principal andCredit Equivalent Amount

Net Exposures after CRM for counterparty credit risk in the banking book, broken down by type of exposures (in PhP million):
December 2023
Consolidated
Standardized Approach)DLU9DOXH
Carrying Amount

ParentNet Exposures
after CRM

)DLU9DOXH
Carrying Amount

Net Exposures after CRM

Derivative Transactions

-

-

-

-

Repo-Style Transactions

97,877.37

22,659.44

97,877.37

22,659.44

97,877.37

22,659.44

97,877.37

22,659.44

Total Fair Value/Carrying Amount andNet Exposures after CRM

December 2022
Consolidated
Standardized Approach)DLU9DOXH
Carrying Amount

Net Exposures
after CRM

Derivative Transactions
Repo-Style Transactions
Total Fair Value/Carrying Amount andNet Exposures after CRM

Parent)DLU9DOXH
Carrying Amount-

Net Exposures after CRM---

81,523.48

16,730.77

81,523.48

16,730.77

81,523.48

16,730.77

81,523.48

16,730.77

December 2021
Consolidated
Standardized Approach

Net Exposures
after CRM

)DLU9DOXH
Carrying Amount

Net Exposures after CRM

Derivative Transactions

-

-

-

-

Repo-Style Transactions

73,943.11

10,816.70

73,943.11

10,816.70

73,943.11

10,816.70

73,943.11

10,816.70

Total Fair Value/Carrying Amount andNet Exposures after CRM

108)DLU9DOXH
Carrying Amount

Parent20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTThe following credit risk mitigants are used in the
December 2023 CAR Report:
•
•
•
•
•
Ř

ROP warrants
ROP guarantee
HGC guarantee
Holdout vs. Peso deposit
Holdout vs. FCDU deposit$VVLJQPHQW3OHGJHRI*RYHUQPHQW6HFXULWLHV

Total credit exposure after risk mitigation, broken down by type of exposures, risk buckets, as well as those that are deducted from
capital (in PhP million):
2023
Weight Band

Consolidated

Parent Company

On-balance Off-balance Counterparty
sheet
sheet

Total

On-balancesheet

Off-balance
sheetCounterparty

Total

Below 100%
100% & Above843,255.66
584,777.69

680.3912,962.88

23,702.28
2,334.50

867,638.33
600,075.06

784,139.22
494,632.12

680.3912,919.80

23,702.28 808,521.89
2,334.50 509,886.42

Total

1,428,033.35

13,643.27

26,036.77

1,467,713.39 1,278,771.35

13,600.19

26,036.77 1,318,408.31

2022
Weight Band

Below 100%
100% & Above
Total

Consolidated

Parent Company

On-balance Off-balance Counterparty
sheet
sheet

Total

On-balancesheet

Off-balance
sheetCounterparty

751,122.40
538,837.78

953.209,078.06

17,198.79
1,571.89

769,274.40
549,487.73

1,289,960.19

10,031.26

18,770.68

Total

708,410.59
467,315.91

953.209,034.52

17,198.79
1,571.89

1,318,762.12 1,175,726.50

9,987.72

18,770.68 1,204,484.90

726,562.59
477,922.31

2021
Weight Band

Below 100%
100% & Above
Total

Consolidated

Parent Company

On-balance Off-balance Counterparty
sheet
sheet

Total

On-balancesheet

Off-balance
sheetCounterparty

599,059.49
478,188.27

5,803.77
8,061.40

11,362.79
330.801,007,247.76

13,865.17

11,693.59

Total

616,226.05
486,580.46

564,535.18
424,345.56

5,803.77
8,013.65

11,362.79
330.801,102,806.52

988,880.74

13,817.42

11,693.59 1,014,391.75

581,701.75
432,690.00

Total credit risk-weighted assets, broken down by type of exposures (in PhP million):
2023
Weight Band

Consolidated
On-balancesheet

Off-balance
sheet

Below 100%

146,103.73

100% & Above
Covered by
CRM

On-balancesheet

Off-balance
sheet

136.089,591.58 155,831.39 134,048.64

136.089,591.58 143,776.30

591,850.95

12,962.88

2,334.50 607,148.33 499,597.16

12,919.80

2,334.50 514,851.46

162.25-

Excess GLLP
Total

Parent Company

Counterparty

Total

-

162.25162.25-738,116.94

13,098.96

11,926.08 763,141.97 633,808.06

Counterparty

Total

-

162.252,306.97

13,055.88

11,926.08 656,483.05

C HI NA BANK I NG COR P O R AT I O N

109

2022
Weight Band

Consolidated
On-balancesheet

Off-balance
sheet

Parent Company

Counterparty

Total

On-balancesheet

Off-balance
sheetCounterparty

Total

Below 100%

134,557.55

190.64

6,568.32

141,316.52

125,830.94

190.64

6,568.32

132,589.90

100% andAbove

542,960.83

9,078.06

1,571.89

553,610.78

469,169.75

9,034.52

1,571.89

479,776.16

127.19--127.19127.19--127.19677,645.58

9,268.70

8,140.21 695,054.49 595,127.88

9,225.16

Covered by
CRM
Excess GLLP
Total

-

265.988,140.21 612,227.27

2021
Weight Band

Consolidated
On-balancesheet

Off-balance
sheet

Below 100%

113,234.38

2,060.75

100% andAbove

482,770.09

8,061.40

63.77-

Covered by
CRM

Parent Company

Counterparty

Total

On-balancesheet

Off-balance
sheet

4,166.05

119,461.19

105,336.46

2,060.75

4,166.05

111,563.26

330.80491,162.28

426,425.79

8,013.65

330.80434,770.24

-

63.77

63.77

-

-

63.77

Excess GLLP
Total

Counterparty

Total

596,068.24

10,122.15

212.484,496.85 610,687.24 531,826.02

10,074.40

4,496.85 546,184.78

The credit ratings given by the following rating agencies were used to determine the credit risk weight of On-balance
sheet, Off-balance sheet, and Counterparty exposures:
For all rated credit exposures regardless of currency:
Standard & Poor (S&P)
0RRG\ōVFitch
For PHP-denominated debts of rated domestic entities:
Philratings
Market Risk-Weighted Assets
The Standardized Approach is used in Chinabank’s market risk-weighted assets. The total market risk-weighted assetof the Bank as of December 2023 is P14,364.90 million on a consolidated basis and P13,920.65 million for the parent
company. This is composed of Interest Rate exposures amounting to P13,146.80 million and Foreign Exposures amounting
to P1,218.10 million on a consolidated basis, and Interest Rate exposures amounting to P13,146.80 million and Foreign
Exposures amounting to P773.85 million for the parent company

Interest Rate Exposures (in PhP Mn)
6SHFLƓF5LVN

Consolidated

Parent Company
2023

Consolidated

Parent Company
2022

67.53

67.53

87.35

87.35

PHP

565.20565.20311.47311.47FCY

419.01419.01

1,648.77

1,648.77

Total Capital Charge

1,051.74

1,051.74

2,047.59

2,047.59

Adjusted Capital Charge

1,314.68

1,314.68

2,559.50

2,559.50(TXLYDOHQW0DUNHW5LVN:HLJKWHG$VVHWV

13,146.80

13,146.80

25,594.96

25,594.96

General Market Risk

110

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

Consolidated

Equity Exposures

Parent Company

Consolidated

2023

Parent Company
2022

Total Capital Charge

-

-

-

-

Adjusted Capital Charge

-

-

-

-

(TXLYDOHQW0DUNHW5LVN:HLJKWHG$VVHWV

-

-

-

-

Foreign Exchange Exposures

Consolidated

Parent Company

Consolidated

2023

Parent Company
2022

Total Capital Charge

97.45

61.91

217.11221.07

Adjusted Capital Charge

121.81

77.39

271.38276.34Equivalent Market Risk-Weighted Assets

1,218.10

773.852,713.83

2,763.35

Total Market Risk-Weighted Assets

14,364.90

13,920.65

28,308.79

28,358.31

Operational, Legal, and Other Risks
The enterprise-wide risk management framework of the bank covers measurement of operational risks to facilitate
management and the setting up of capital cover. The Bank monitors its operational risk exposures through using tools that
include Key Risk Indicators, Risk Assessments and Control Self Assessments as well as scenario analyses. The capital allocatedby the bank for Operational Risk amounted to PHP 8,440 million of which PHP 7,223 million was allocated to the operation of
WKH3DUHQW%DQN%RWKƓJXUHVDVVHVVHGDVDGHTXDWHWRFRYHUWKHFRPSXWHGRYHUDOORSHUDWLRQDOULVNH[SRVXUHIRUWKH*URXSDQGIRUWKHSDUHQWUHVSHFWLYHO\,QDGGLWLRQWKH%DQNWKURXJKLWV/HJDO &ROOHFWLRQ*URXSLGHQWLƓHGDQGDVVHVVHGSRWHQWLDOORVVHVDWWULEXWHGWR/HJDO5LVNDQGWKHDPRXQWLVQRWPDWHULDOWRVLJQLƓFDQWO\DIIHFWWKH%DQNōVFDSLWDOSRVLWLRQOperational Risk-Weighted Assets
The bank risk weights its assets for purposes of operational risk using the Basic Indicators Approach. Banks using this method
UHFRJQL]HDULVNZHLJKWHGDVVHWWKDWLVWLPHVƓIWHHQSHUFHQWRIWKHDYHUDJHRSHUDWLQJLQFRPHUHSRUWHGE\WKHEDQNRYHU
the last three reporting periods. Total Operational Risk Weighted Assets reported were as follows:
In PHP millions

2023

2022

Parent

84,404

59,861

Group

72,23370,188Interest Rate Risk In The Banking Book
The Bank’s interest rate risk in the banking book (IRRBB) originates from its holdings of interest rate sensitive assets andinterest rate sensitive liabilities. The repricing mismatch exposes the Bank to movements in interest rates. To measure theimpact to the Bank’s net interest income, a sensitivity analysis thru the Earnings-at-Risk (EaR) method is performed. In thisPHWKRG/RDQVDUHDVVXPHGDIIHFWHGE\LQWHUHVWUDWHPRYHPHQWVRQLWVUHSULFLQJGDWHIRUŴRDWLQJUDWHVDQGRQLWVPDWXULW\
IRUƓ[HGUDWHV'HPDQGDQGVDYLQJVGHSRVLWVRQWKHRWKHUKDQGDUHJHQHUDOO\FRQVLGHUHGQRWVHQVLWLYHWRLQWHUHVWUDWH
movements. EaR results are discussed in Asset and Liability (ALCO) meetings every week. Aside from measuring exposure
to movements in interest rates, the Bank also performs stress testing for adverse changes in interest rates during stressevents. Results are reported to the Risk Oversight Committee (ROC) every month.
Provided in the table below are the approximate addition and reduction in annualized net interest income of a 100bps
change across the yield curve.
Earnings-at-Risk in PhP Million

Consolidated

Parent

2023

2022

2023

2022

Upward

931

174

686

263

Downward

931

174

686

262
C HI NA BANK I NG COR P O R AT I O N

111

Report of the Audit Committee
Chinabank recognizes the pivotal role of effective audit oversight
DQGJRYHUQDQFHRILWVSURFHVVHVƓQDQFLDOUHSRUWLQJDQGLQWHUQDO
control systems with the objective of ensuring the delivery ofaccurate information and high-quality service to its clients andkey stakeholders. The Audit Committee, which is a Board-level
Committee, provides structured and systematic oversight toachieve this goal.
The Audit Committee is an independent body that provides
the Board with impartial advice and guidance relative to theadequacy and effectiveness of management’s activities andpotential improvements. Its main function is to oversee all
matters relating to internal audit function and performance and
HQKDQFHWKH%RDUGōVRYHUVLJKWFDSDELOLW\RYHUWKH%DQNōVƓQDQFLDO
reporting, internal control system, internal and external audit
processes, and compliance with applicable laws and regulations.
In addition, the Committee has explicit authority to investigate
any matter within its term of reference, with full access toand cooperation by management. It has unrestricted accessto records, data, and reports, and is empowered to seek
professional guidance to assist it in the performance of its duties.
,QGHSHQGHQW'LUHFWRU&ODLUH$QQ7<DSD&HUWLƓHG3XEOLF
Accountant, leads the Committee as Chairperson, with NonExecutive Director Joaquin T. Dee and Independent Director
Genaro V. Lapez as members. All the members have the relevant
background, knowledge, skills and experience in the areas of
DFFRXQWLQJDXGLWLQJDQGƓQDQFLDOPDQDJHPHQWFRPPHQVXUDWHZLWKWKHVL]HFRPSOH[LW\RIRSHUDWLRQVDQGULVNSURƓOHRIWKH%DQN
For the year ended 31 December 2023, the Committee held
twelve regular meetings and one special meeting. Pursuant to
the Board-approved Guidelines for Participation in Board andCommittee Meetings through Remote Communication, theCommittee members participated in meetings in person or
through remote communication.
EXTERNAL ASSURANCE PROCESSES AND PROVIDERS
To provide the Board reasonable assurance with respect tothe work of external assurance processes and providers, theCommittee approved the engagement of R.G. Manabat & Co.
(KPMG) to facilitate the external quality assurance review exerciseof the Bank for the year 2023. This engagement endeavors
to allow the Bank to have a full independent and objective
assessment of its internal audit activity, measure how internal
audit adds value to the organization, and increase stakeholders’FRQƓGHQFHWRLQWHUQDODXGLWIXQFWLRQ
The Committee likewise selected SyCip Gorres Velayo &Co. (SGV) as external auditors, after careful scrutiny of theirTXDOLƓFDWLRQVSHUIRUPDQFHFRPSHWHQFHLQWHJULW\DQG
independence. It then endorsed the re-engagement of SGV for%RDUGDSSURYDODQGVWRFNKROGHUUDWLƓFDWLRQThe Committee also recommended for approval of the%RDUGIHHVLQFRQQHFWLRQZLWKWKHDXGLWRIWKH%DQNōVƓQDQFLDO
statements, independent validation of votes for the stockholders’meeting, and other non-audit work. It also reviewed and
GLVFXVVHGWKHDQQXDODXGLWHGƓQDQFLDOVWDWHPHQWVPDQDJHPHQW
letters, disposition of recommendations, regulatory andaccounting issues and developments and their effect on theƓQDQFLDOVWDWHPHQWV:LWKRXWWKHSUHVHQFHRIPDQDJHPHQW

112

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTand together with the internal audit, risk management, andcompliance teams, the Committee discussed other mattersrelating to the processes and controls of the Bank.
OVERSIGHT OF FINANCIAL REPORTING
7KH&RPPLWWHHH[DPLQHVWKH%DQNōVUHOHYDQWƓQDQFLDOUHSRUWLQJ
processes, practices, and controls that generate accurate andcomprehensive information and reports.
In 2023, the members discussed with management and external
DXGLWRUVWKHDXGLWHGƓQDQFLDOVWDWHPHQWVEHIRUHSUHVHQWDWLRQWRWKH
Board, focusing on changes in accounting policies and practices,
standards and interpretations, reasonableness of estimates and
DVVXPSWLRQVLQWKHSUHSDUDWLRQRIƓQDQFLDOVWDWHPHQWVDQG
VLJQLƓFDQWDGMXVWPHQWVUHVXOWLQJIURPWKHDXGLWDPRQJRWKHUVThe Committee played an active role in assessing the auditedƓQDQFLDOVWDWHPHQWVVSHFLƓFDOO\IRFXVLQJRQNH\DXGLWPDWWHUVother areas of audit emphasis, tax observations and updates,
standards and interpretations and their impact. It also tackled
the external auditors’ audit plan and further discussed comments
UHODWLYHWRWKHSUHYLRXVƓQDQFLDOVWDWHPHQWVWRJHWKHUZLWKWKH
management’s response and undertaking.
OVERSIGHT OF INTERNAL CONTROL AND COMPLIANCE
SYSTEM
The Committee is also tasked to provide the Board withindependent and objective advice on the adequacy of an
HIIHFWLYHDQGHIƓFLHQWLQWHUQDOFRQWUROV\VWHPLQFOXGLQJWKH
Bank’s information technology security and control. It also
ensures that systems and processes are designed to provide
assurance in reporting, monitoring of compliance with laws,
UHJXODWLRQVLQWHUQDOSROLFLHVHIƓFLHQF\DQGHIIHFWLYHQHVVRI
operations by updating the organizational framework, and
VDIHJXDUGLQJDVVHWVVSHFLƓFDOO\FRQVLGHULQJWKH%DQNōVULVNSURƓOHDQGVWUDWHJLFGLUHFWLRQVFor the covered period, the Committee thoroughly reviewed
various systems and processes, models, current and proposed
policies, IT general and security controls and IT systems. It
further tackled internal control issues raised during internal andexternal audits, examined the root causes and common audit
observations raised in the internal audit reports, required units
to accomplish action plans within the designated commitment
dates, and followed-up units with pending and unresolved audit
REVHUYDWLRQV7KH&RPPLWWHHHQVXUHGWKDWHIƓFLHQWDQGSURPSW
turnaround times are in place to address any pending audit
LVVXHVZLWKGHƓQLWLYHFRXUVHVRIDFWLRQVHVSHFLDOO\IRUKLJK
risk audit and management issues, and units with low overall
audit ratings, and monitored how its and the Board’s previous
directives were managed and resolved.
The Committee also reviewed and assessed the effectiveness ofthe system for monitoring compliance with laws and regulations,whistleblowing mechanism, and the results of management’s
investigation and follow-up of any instance of non-compliance.
,WLQYLWHGNH\RIƓFHUVDQGUHVRXUFHSHUVRQQHOWRGHWHUPLQHWKH
root causes of the audit observations and provide updates on
outstanding audit issues arising from regular, limited, spot andspecial audits of branches, units and subsidiaries, as well as theresults of the working papers review.

INTERNAL AUDIT FUNCTION
The Committee oversees the effectiveness of the Bank’s internal
audit function. In its meetings for the year, the Committee
exhaustively evaluated the activities versus plans of the key unitsof the Audit Group, namely, Branch Audit Department, Head2IƓFH$XGLW'HSDUWPHQW$XGLW4XDOLW\$VVXUDQFH'HSDUWPHQW,7
$XGLW'HSDUWPHQWDQGWKHQHZO\FUHDWHG1RQ+HDG2IƓFH$XGLWDivision, comprised of the Other Subsidiaries Audit Department
and CBS Audit Department.
Through the results the periodic self-assessment of theinternal audit activity, it assessed conformance with theInstitute of Internal Auditors’ (IIA) International Standards for
the Professional Practices of Internal Auditing (Standards) andthe Code of Ethics. The Committee discussed and evaluatedthe key accomplishments done on internal audit activity andmanpower requirements of the units, approved several updates
to the plans and audit function framework, updated the Audit
Manuals of units under the Audit Group, prioritized the use ofdata analytics, and provided direction on and examined how
the audit engagements are completed based on plans andrepresentations. IT also revised the Audit Committee Charterto include additional functions based on IIA’s Supplemental
Guidance: Model Internal Audit Activity Charter & Standard.
The Committee also authorized the outsourcing of audit
engagements to third party service providers to further augment
the Bank’s internal audit function, after deliberating on theselection criteria versus the internal standards of the Bankand regulatory requirements and standards. It also conducted
VWUDWHJLFSODQQLQJH[HFXWLYHVHVVLRQVZLWKWKH&KLHI$XGLWExecutive (CAE) to discuss strategic plans, rationalization of mandays and enhancement of the Audit Group’s role in the review ofvarious engagements and projects.
In order to address regulatory expectations and provide astandard and consistent approach in effectively handling
audit issues and proper escalation, the Audit Committee also
approved the implementation of the policy on the handling ofaudit issues and escalation process, aligned with IIA’s Standards.

In 2023, in order to align internal audit’s operating model tothe business direction and growth of the Bank, the Committee
approved the changes in the organizational structure of internal
audit, elevating it to Group, and appointing Mr. Jeruel N. Lobien
as CAE and Audit Group Head. During the year, the Committee
considered the organizational independence of internal audit
and its activities, and the adherence of the CAE to the IIA’s
Standard and Implementation Guide 2130 on Control andStandard 1100 on Independence and Objectivity. It evaluatedthe performance of the CAE and ensured that his performanceof the internal audit function is independent from interference ofoutside parties. It also monitored the conformance of the internal
audit function with the Internal Auditors’ International Standards
for the Professional Practice of Internal Auditing, and the Bank’s
Code of Ethics.
Based on the foregoing, the Committee posits that the Bank’s
LQWHUQDOFRQWUROFRPSOLDQFHV\VWHPDQGƓQDQFLDOUHSRUWLQJIUDPHZRUNDUHLQSODFHDGHTXDWHHIIHFWLYHDQGHIƓFLHQWDQGWKDW
WKHƓQDQFLDOVWDWHPHQWVSUHVHQWIDLUO\WKH%DQNōVƓQDQFLDOSRVLWLRQ
and performance in all material respects in accordance with therelevant auditing and accounting standards.

Makati City, 20 March 2024.

CLAIRE ANN T. YAPChairperson

JOAQUIN T. DEE
Member

GENARO V. LAPEZMemberC HI NA BANK I NG COR P O R AT I O N

113Statement of Management
Responsibility for Financial Statements
The management of China Banking Corporation (the Bank) is responsible for the preparation and fair presentation of the consolidatedƓQDQFLDOVWDWHPHQWVLQFOXGLQJWKHVFKHGXOHVDWWDFKHGWKHUHLQIRUWKH\HDUVHQGHG'HFHPEHUDQGLQDFFRUGDQFHZLWKWKHSUHVFULEHGƓQDQFLDOUHSRUWLQJIUDPHZRUNLQGLFDWHGWKHUHLQDQGIRUVXFKLQWHUQDOFRQWURODVPDQDJHPHQWGHWHUPLQHVLVQHFHVVDU\WRHQDEOHWKHSUHSDUDWLRQRIFRQVROLGDWHGƓQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
,QSUHSDULQJWKHFRQVROLGDWHGƓQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHVSRQVLEOHIRUDVVHVVLQJWKH%DQNōVDELOLW\WRFRQWLQXHDVD
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
7KH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRURYHUVHHLQJWKH%DQNōVƓQDQFLDOUHSRUWLQJSURFHVV
7KH%RDUGRI'LUHFWRUVUHYLHZVDQGDSSURYHVWKHFRQVROLGDWHGƓQDQFLDOVWDWHPHQWVLQFOXGLQJWKHVFKHGXOHVDWWDFKHGWKHUHLQDQG
submits the same to the stockholders.
6\&LS*RUUHV9HOD\R &RWKHLQGHSHQGHQWDXGLWRUVDSSRLQWHGE\WKHVWRFNKROGHUVKDVDXGLWHGWKHFRQVROLGDWHGƓQDQFLDO
statements of the Bank in accordance with Philippine Standards on Auditing, and in its report to the stockholders, has expressed its
opinion on the fairness of presentation upon completion of such audit.

Hans T. Sy
Chairman of the Board

Romeo D. Uyan Jr.
3UHVLGHQW &KLHI([HFXWLYH2IƓFHU

Notarized in Makati City on March 5, 2024 by Regine C. Yu, Notary Public for Makati City
Doc. no.: 512
Page. no.: 104
Book no.: 19
Series of 2024

114

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTPatrick D. Cheng&KLHI)LQDQFH2IƓFHU

Independent Auditor’s Report
The Board of Directors and Stockholders
China Banking Corporation
8745 Paseo de Roxas cor. Villar St.
Makati City
Report on the Consolidated and Parent Company Financial
Statements
Opinion:HKDYHDXGLWHGWKHFRQVROLGDWHGƓQDQFLDOVWDWHPHQWVRI
China Banking Corporation and its subsidiaries (the Group)
DQGWKHSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVRI&KLQD
Banking Corporation (the Parent Company), which comprisethe consolidated and parent company balance sheets as at
December 31, 2023 and 2022, and the consolidated and parent
company statements of income, consolidated and parent
company statements of comprehensive income, consolidated
and parent company statements of changes in equity and
FRQVROLGDWHGDQGSDUHQWFRPSDQ\VWDWHPHQWVRIFDVKŴRZVIRU
each of the three years in the period ended December 31, 2023,
DQGQRWHVWRWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements, including material accounting policy information.
In our opinion, the accompanying consolidated and parent
FRPSDQ\ƓQDQFLDOVWDWHPHQWVSUHVHQWIDLUO\LQDOOPDWHULDOUHVSHFWVWKHƓQDQFLDOSRVLWLRQRIWKH*URXSDQGWKH3DUHQW&RPSDQ\DVDW'HFHPEHUDQGDQGWKHLUƓQDQFLDOSHUIRUPDQFHDQGWKHLUFDVKŴRZVIRUHDFKRIWKHWKUHH\HDUV
in the period ended December 31, 2023 in accordance with
Philippine Financial Reporting Standards (PFRSs).
Basis for Opinion
We conducted our audits in accordance with Philippine
Standards on Auditing (PSAs). Our responsibilities under thosestandards are further described in the $XGLWRUōV5HVSRQVLELOLWLHVfor the Audit of the Consolidated and Parent Company Financial
Statements section of our report. We are independent of theGroup and the Parent Company in accordance with the Code of
Ethics for Professional Accountants in the Philippines (Code of
Ethics) together with the ethical requirements that are relevant
WRRXUDXGLWRIWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVLQWKH3KLOLSSLQHVDQGZHKDYHIXOƓOOHGRXURWKHU
ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we
KDYHREWDLQHGLVVXIƓFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRU
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
MXGJPHQWZHUHRIPRVWVLJQLƓFDQFHLQRXUDXGLWRIWKH
FRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVRIWKH
current period. These matters were addressed in the context
RIRXUDXGLWRIWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements as a whole, and in forming our opinion thereon, andwe do not provide a separate opinion on these matters. For eachmatter below, our description of how our audit addressed thematter is provided in that context.
:HKDYHIXOƓOOHGWKHUHVSRQVLELOLWLHVGHVFULEHGLQWKH$XGLWRUōV
Responsibilities for the Audit of the Consolidated and Parent
Company Financial Statements section of our report, including
in relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the
FRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWV7KH

results of our audit procedures, including the procedures
performed to address the matters below, provide the basis forour audit opinion on the accompanying consolidated and parent
FRPSDQ\ƓQDQFLDOVWDWHPHQWVApplicable to the audit of the Consolidated and Parent
Company Financial Statements
Adequacy of allowance for credit losses on loans andreceivables
The Group’s and the Parent Company’s application of the
expected credit loss (ECL) model in calculating the allowance for
FUHGLWORVVHVRQORDQVDQGUHFHLYDEOHVLVVLJQLƓFDQWWRRXUDXGLWDVLWLQYROYHVWKHH[HUFLVHRIVLJQLƓFDQWPDQDJHPHQWMXGJPHQWKey areas of judgment include: segmenting the Group’s andthe Parent Company’s credit risk exposures; determining
WKHPHWKRGWRHVWLPDWH(&/GHƓQLQJGHIDXOWLGHQWLI\LQJ
H[SRVXUHVZLWKVLJQLƓFDQWGHWHULRUDWLRQLQFUHGLWTXDOLW\
determining assumptions to be used in the ECL model suchas the counterparty credit risk rating, the expected life of theƓQDQFLDODVVHWH[SHFWHGUHFRYHULHVIURPGHIDXOWHGDFFRXQWVDQG
incorporating forward-looking information, in calculating ECL.
Allowance for credit losses for loans and receivables as ofDecember 31, 2023 for the Group and the Parent Company
amounted to =P17.38 billion and =P14.33 billion, respectively.
Provision for credit losses on loans and receivables of the Groupand the Parent Company in 2023 amounted to =P1.81 billion and=P0.78 billion, respectively.
5HIHUWR1RWHVDQGRIWKHƓQDQFLDOVWDWHPHQWVIRUWKH
disclosure on the details of the allowance for credit losses using
the ECL model.
Audit Response
We obtained an understanding of the board approved
methodologies and models used for the Group’s and the
Parent Company’s different credit exposures and assessed
whether these considered the requirements of PFRS 9, Financial
InstrumentsWRUHŴHFWDQXQELDVHGDQGSUREDELOLW\ZHLJKWHG
outcome, and to consider time value of money and the best
available forward-looking information.
We (a) assessed the Group’s and the Parent Company’s
segmentation of its credit risk exposures based on homogeneity
RIFUHGLWULVNFKDUDFWHULVWLFV E WHVWHGWKHGHƓQLWLRQRIGHIDXOWDQGVLJQLƓFDQWLQFUHDVHLQFUHGLWULVNFULWHULDDJDLQVWKLVWRULFDO
analysis of accounts, credit risk management policies andpractices in place; (c) tested the Group’s and the Parent
Company’s application of internal credit risk rating system byreviewing the ratings of sample credit exposures; (d) assessed
whether expected life is different from the contractual life by
WHVWLQJWKHPDWXULW\GDWHVUHŴHFWHGLQWKH*URXSōVDQGWKH3DUHQWCompany’s records and considering management’s assumptions
regarding future collections, advances, extensions, renewals
DQGPRGLƓFDWLRQV H WHVWHGORVVJLYHQGHIDXOWE\LQVSHFWLQJ
historical recoveries and related costs, write-offs and collateralYDOXDWLRQVDQGWKHHIIHFWVRIDQ\ƓQDQFLDOVXSSRUWDQGFUHGLW
enhancements provided by any party; (f) tested exposure atdefault considering outstanding commitments and repayment
scheme;C HI NA BANK I NG COR P O R AT I O N

115

(g) evaluated the forward-looking information used for overlay
through corroboration of publicly available information and ourunderstanding of the Group’s and the Parent Company’s lending
portfolios and broader industry knowledge; and (h) tested theeffective interest rate used in discounting the expected loss.
Further, we compared the data used in the ECL models fromsource system reports to the data warehouse and from the dataZDUHKRXVHWRWKHORVVDOORZDQFHDQDO\VLVPRGHOVDQGƓQDQFLDO
reporting systems. To the extent that the loss allowance analysis
is based on credit exposures that have been disaggregated into
VXEVHWVRIGHEWƓQDQFLDODVVHWVZLWKVLPLODUULVNFKDUDFWHULVWLFV
we traced or re-performed the disaggregation from source
systems to the loss allowance analysis.
We involved our internal specialist in the performance of theabove procedures. We recalculated impairment provisions on asample basis.
Impairment testing of goodwill and branch licenses withLQGHƓQLWHXVHIXOOLIH
Under PFRS, the Group and the Parent Company are required
to perform annual impairment test of goodwill and branch
OLFHQVHVZLWKLQGHƓQLWHXVHIXOOLIH$VRI'HFHPEHUWKH
goodwill recognized in the consolidated and parent company=222.84 million is attributedƓQDQFLDOVWDWHPHQWVDPRXQWLQJWR3
to the Parent Company’s Retail Banking Business (RBB) segment,
while goodwill of =PPLOOLRQLQWKHFRQVROLGDWHGƓQDQFLDO
statements is attributed to the subsidiary bank, China Bank
Savings, Inc. (CBSI). In addition, the respective branches are
LGHQWLƓHGDVWKHFDVKJHQHUDWLQJXQLWV &*8V IRUSXUSRVHV
of impairment testing of branch licenses amounting to =P 3.39billion and =P 398.00 million for the Group and Parent Company,
respectively. The Group and the Parent Company performed the
impairment testing using the CGUs’ value-in-use.
0DQDJHPHQWōVDVVHVVPHQWSURFHVVUHTXLUHVVLJQLƓFDQWMXGJPHQW
and is based on assumptions which are subject to higher level of
estimation uncertainty due to the current economic conditions,
VSHFLƓFDOO\ORDQDQGGHSRVLWJURZWKUDWHVGLVFRXQWUDWHDQGWKH
long-term growth rate. Hence, the annual impairment test is
VLJQLƓFDQWWRRXUDXGLWThe Group’s disclosures about goodwill and branch licenses are
LQFOXGHGLQ1RWHVDQGWRWKHƓQDQFLDOVWDWHPHQWV
Audit Response
We evaluated the methodologies used and the management’s
assumptions by comparing the key assumptions used, such asloan and deposit growth and long-term growth rates against the
KLVWRULFDOSHUIRUPDQFHRIWKHEUDQFKHV5%%DQG&%6,LQGXVWU\market outlook and other relevant external data. We tested
the parameters used in the determination of the discount rate
against market data. We also reviewed the Group’s disclosuresabout those assumptions to which the outcome of the
LPSDLUPHQWWHVWLVPRVWVHQVLWLYHVSHFLƓFDOO\WKRVHWKDWKDYHWKH
PRVWVLJQLƓFDQWHIIHFWRQWKHGHWHUPLQDWLRQRIWKHUHFRYHUDEOH
amount of goodwill and branch licenses.

116

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

Other Information
Management is responsible for the other information. The otherinformation comprises the information included in the SEC)RUP,6 'HƓQLWLYH,QIRUPDWLRQ6WDWHPHQW 6(&)RUP$
and Annual Report for the year ended December 31, 2023, but
GRHVQRWLQFOXGHWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements and our auditor’s report thereon. The SEC Form 20,6 'HƓQLWLYH,QIRUPDWLRQ6WDWHPHQW 6(&)RUP$DQG$QQXDOReport for the year ended December 31, 2023 are expected tobe made available to us after the date of this auditor’s report.
2XURSLQLRQRQWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
In connection with our audits of the consolidated and parent
FRPSDQ\ƓQDQFLDOVWDWHPHQWVRXUUHVSRQVLELOLW\LVWRUHDGWKH
RWKHULQIRUPDWLRQLGHQWLƓHGDERYHZKHQLWEHFRPHVDYDLODEOH
and, in doing so, consider whether the other information
is materially inconsistent with the consolidated and parent
FRPSDQ\ƓQDQFLDOVWDWHPHQWVRURXUNQRZOHGJHREWDLQHGLQWKH
audits, or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with
Governance for the Consolidated and Parent Company Financial
Statements
Management is responsible for the preparation and fair
SUHVHQWDWLRQRIWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements in accordance with PFRSs, and for such internal
control as management determines is necessary to enable
WKHSUHSDUDWLRQRIFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements that are free from material misstatement, whether due
to fraud or error.
,QSUHSDULQJWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements, management is responsible for assessing the Group’sand Parent Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless management
either intends to liquidate the Group and the Parent Company or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing
WKH*URXSōVDQG3DUHQW&RPSDQ\ōVƓQDQFLDOUHSRUWLQJSURFHVV
Auditor’s Responsibilities for the Audit of the Consolidated
and Parent Company Financial Statements
Our objectives are to obtain reasonable assurance about whether
WKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVDV
a whole are free from material misstatement, whether due tofraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with
PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably
EHH[SHFWHGWRLQŴXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVWDNHQRQWKHEDVLVRIWKHVHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDO
statements.

As part of an audit in accordance with PSAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:• Identify and assess the risks of material misstatement of
WKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVwhether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit
HYLGHQFHWKDWLVVXIƓFLHQWDQGDSSURSULDWHWRSURYLGHD
basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal control relevant tothe audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’sand Parent Company’s internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty
H[LVWVUHODWHGWRHYHQWVRUFRQGLWLRQVWKDWPD\FDVWVLJQLƓFDQW
doubt on the Group’s and Parent Company’s ability tocontinue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated
DQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVRULIVXFKdisclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events orconditions may cause the Group and the Parent Company tocease to continue as a going concern.
• Evaluate the overall presentation, structure and content of
WKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWV
including the disclosures, and whether the consolidated
DQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVUHSUHVHQWWKH
underlying transactions and events in a manner that achieves
fair presentation.
Ř 2EWDLQVXIƓFLHQWDSSURSULDWHDXGLWHYLGHQFHUHJDUGLQJWKH
ƓQDQFLDOLQIRUPDWLRQRIWKHHQWLWLHVRUEXVLQHVVDFWLYLWLHV
within the Group to express an opinion on the consolidatedƓQDQFLDOVWDWHPHQWV:HDUHUHVSRQVLEOHIRUWKHGLUHFWLRQ
supervision and performance of the audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governanceregarding, among other matters, the planned scope and
WLPLQJRIWKHDXGLWDQGVLJQLƓFDQWDXGLWƓQGLQJVLQFOXGLQJDQ\
VLJQLƓFDQWGHƓFLHQFLHVLQLQWHUQDOFRQWUROWKDWZHLGHQWLI\GXULQJour audit.

VLJQLƓFDQFHLQWKHDXGLWRIWKHFRQVROLGDWHGDQGSDUHQWFRPSDQ\ƓQDQFLDOVWDWHPHQWVRIWKHFXUUHQWSHULRGDQGDUHWKHUHIRUHWKH
key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would
UHDVRQDEO\EHH[SHFWHGWRRXWZHLJKWKHSXEOLFLQWHUHVWEHQHƓWVof such communication.
Report on the Supplementary Information Required Under
Section 174 of Manual of Regulations for Banks and Revenue
Regulations 15 2010
Our audits were conducted for the purpose of forming an
RSLQLRQRQWKHEDVLFƓQDQFLDOVWDWHPHQWVWDNHQDVDZKROH
The supplementary information required under Section 174
of Manual of Regulations for Banks in Note 37 and Revenue
5HJXODWLRQVLQ1RWHWRWKHƓQDQFLDOVWDWHPHQWVLV
SUHVHQWHGIRUSXUSRVHVRIƓOLQJZLWKWKH%63DQG%XUHDXRIInternal Revenue, respectively, and is not a required part of the
EDVLFƓQDQFLDOVWDWHPHQWV6XFKLQIRUPDWLRQLVWKHUHVSRQVLELOLW\of the management of China Banking Corporation. The
information has been subjected to the auditing procedures
DSSOLHGLQRXUDXGLWRIWKHEDVLFƓQDQFLDOVWDWHPHQWV,QRXU
opinion, the information is fairly stated, in all material respects, in
UHODWLRQWRWKHEDVLFƓQDQFLDOVWDWHPHQWVWDNHQDVDZKROHThe engagement partner on the audit resulting in thisindependent auditor’s report is Janet A. Paraiso.
SYCIP GORRES VELAYO & CO.

Janet A. Paraiso
Partner&3$&HUWLƓFDWH1R7D[,GHQWLƓFDWLRQ1R
%2$35&5HJ1R$XJXVWYDOLGXQWLO$SULO2024
BIR Accreditation No. 08-001998-062-2023, October 23, 2023,
valid until October 22, 2026
PTR No. 10079894, January 5, 2024, Makati City
February 26, 2024

We also provide those charged with governance with a statementthat we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of most

C HI NA BANK I NG COR P O R AT I O N

117Management’s Discussion on Result of
Operations and Financial Condition
RESULT OF OPERATIONSFINANCIAL CONDITION—22.0
Chinabank delivered a 15.1% growth in net income to P
—19.1 billion earned in 2022, supported bybillion from the P
improvements across its core businesses. This strong income
performance translated to a better return on equity of 15.46%
and return on assets of 1.57%.

—1.5 trillion in 2023, 11.2% higher
Consolidated assets stood at P
than year-end 2022, supported by the expansion in investment
securities and net loans.

—53.5 billion as the 38.7%
Net interest income rose 17.4% to P
surge in interest income on loans, investments and other earning
assets cushioned the increase in interest expense. Net interest
margin was recorded at 4.24%.
—563.7 million as the
Non-interest income decreased by 94.4% to P
improvements in core fees were offset by the foreign exchange
losses arising from treasury-related activities as well as one-off
gains last year. Service charges, fees, and commissions were up—3.3 billion from the upswing in transaction volume
15.3% to P
—585.9 million
and fees. Trust fee income was 23.7% higher at P
because of volume-related growth year-on-year. The decreasein sales volume of foreclosed assets resulted in a 13.7% drop—602.8 million.
in gain on sale of investment properties to P
—1.4 billion, down by 72.3%
Miscellaneous income totaled P
due to one-off gains recognized last year.
Operating expenses (excluding provision for impairment and—27.0 billion, from the uptick
credit losses) increased by 11.0% to P
in business volume-related costs and heavier investments in
manpower and IT. The material components of which include
FRPSHQVDWLRQDQGIULQJHEHQHƓWVZKLFKDFFRXQWHGIRU
of total expenses, taxes & licenses at 20.8%, miscellaneous
expenses at 10.8%, and insurance at 10.2%. Cost-to-income ratio
was registered at 50% from 44% in 2022.
With improving economic conditions, the Bank reduced its—1.2 billion.
provision for impairment and credit losses to P
—1.90 per share or
For 2023, Chinabank paid a cash dividend of P
—5.1 billion, which represents a total payout of 27% of
a total of P
prior year’s net income.

118

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT—504.6The Bank’s investment securities portfolio amounted to P
ELOOLRQXS)LQDQFLDODVVHWVDWIDLUYDOXHWKURXJKSURƓWRU
—8.9 billion to P
—13.6 billion with the growth inloss (FVPL) grew by P
Ɠ[HGLQFRPHDVVHWV0HDQZKLOH'HULYDWLYHFRQWUDFWVGHVLJQDWHG
as hedges representing interest rate swap (IRS) contracts used
—2.3 billion to P
—3.9 billion due
as hedging instruments dropped P
WRWKHGLVFRQWLQXDQFHGXULQJWKH\HDURIRQHRIWKHFDVKŴRZ
hedges against certain liabilities. Financial assets at fair value
through other comprehensive income (FVOCI) and Investment—63.2 billion
Securities at Amortized Cost posted increases by P
—22.5 billion, respectively, due to higher securities volume.
and P—791.0 billion, with the share
Gross loans increased 10.2% to P
of consumer loans to total loan portfolio now at 23%. Net loans—772.0 billion. Asset quality was stable with 2.5%
grew 10.3% to P
non-performing loan (NPL) ratio while NPL coverage remainedVXIƓFLHQWDW
—1.2 trillion, up
On the funding side, deposits was recorded at P
11.3% mainly from the increase in the Bank’s term deposits.
The combined demand and savings deposits slightly increased
to P575.3 billion, accounting for 48% of total deposits. On the—20.0 billion
other hand, bonds payable declined by 29.4% to P
due to the pre-termination of $150 million bonds payable during
the period.
—150.3 billion, 11.7% higher than the
Total capital reached P—134.6 billion in 2022. The Bank’s Common Equity Tier 1
P(CET 1) ratio was computed at 15.25%, while total Capital
Adequacy Ratio (CAR) was at 16.14%. Both are above theregulatory minimum requirement.

China Banking Corporation And Subsidiaries
Balance Sheets(Amounts In Thousands)

Consolidated

Parent Company
December 31

2023

2022

2023

2022

Cash and Other Cash Items—15,998,094
P—
P13,689,421—13,041,135
P—P10,073,767

Due from Bangko Sentral ng Pilipinas (Notes 7 and 17)

84,595,973

107,100,295

73,156,991

92,920,540

Due from Other Banks (Note 7)

19,964,415

13,614,609

17,352,830

12,347,169

Interbank Loans Receivable and Securities Purchased
under Resale Agreements (Note 8)

34,720,250

43,564,970

31,075,654

41,597,949)LQDQFLDO$VVHWVDW)DLU9DOXHWKURXJK3URƓWRU/RVV (Note 9)

13,631,287

4,727,580

12,642,063

3,514,576

Derivative Contracts Designated as Hedges (Note 26)

3,946,553

6,203,379

3,946,553

6,203,379

Financial Assets at Fair Value through Other Comprehensive Income (Note 9)

106,541,487

43,316,757

93,826,436

41,151,125

Investment Securities at Amortized Cost (Note 9)

380,461,421

357,985,926

373,567,542

351,802,877

Loans and Receivables (Notes 10 and 30)

771,991,759

699,594,789

663,182,149

613,197,254

Accrued Interest Receivable (Note 16)

11,464,932

9,781,803

10,382,588

8,730,710––

22,616,966

19,063,796

ASSETS

Investment in Subsidiaries (Note 11)
Investment in Associates (Note 11)

1,389,952

983,243

1,389,952

983,243

Bank Premises, Furniture, Fixtures and Equipment and Right-of-use Assets (Note 12)

10,078,844

9,337,260

8,086,119

7,670,562

Investment Properties (Note 13)

3,936,112

3,914,891

1,737,570

1,487,258

Deferred Tax Assets (Note 28)

6,505,865

4,552,692

4,961,076

3,150,610

Intangible Assets (Note 14 and 16)

3,776,649

3,783,643

726,317721,314

839,748839,748

222,841

222,841

8,199,881

6,738,460

4,614,667

3,833,925—1,478,043,222
P—1,329,729,466
P—1,336,529,449
P—P1,218,672,895

Demand—291,397,398
P—272,109,739
P— 266,547,758
P— 248,860,724
P

Savings

283,859,211

301,330,580

263,095,339

279,502,452

Time

611,466,946

492,474,358

520,931,657

431,055,393

1,186,723,555

1,065,914,677

1,050,574,754

959,418,569

Bonds Payable (Note 18)

19,989,307

28,312,870

19,989,307

28,312,870

Bills Payable (Note 19)

84,798,489

70,375,267

84,798,489

70,375,267

Manager’s Checks

2,109,463

1,550,669

1,419,764

1,296,109

Income Tax Payable

133,659

311,915

48,083

293,4228,589,210

6,115,889

7,499,427

5,399,625

Goodwill (Note 14)
Other Assets (Note 15)

LIABILITIES AND EQUITY
Liabilities
Deposit Liabilities (Notes 17 and 30)

Accrued Interest and Other Expenses 1RWHb
Derivative Liabilities (Note 26)

938,722

1,549,561

938,722

1,549,561

8,049,417

4,156,612

8,049,417

4,156,612

792,114

794,432––

15,620,885

16,068,964

12,989,337

13,360,788

1,327,744,821

1,195,150,856

1,186,307,300

1,084,162,823

Capital stock (Note 24)

26,913,403

26,912,882

26,913,403

26,912,882

Capital paid in excess of par value (Note 24)

17,201,513

17,200,758

17,201,513

17,200,758

Surplus reserves (Notes 24 and 29)

5,003,653

4,923,115

5,003,653

4,923,115

Surplus (Notes 24 and 29)

100,900,465

84,083,661

100,900,465

84,083,661

1HWXQUHDOL]HGORVVRQƓQDQFLDODVVHWVDWIDLUYDOXHWKURXJKRWKHU
comprehensive income (Note 9)

Derivative Contracts Designated as Hedges 1RWHb
Deferred Tax Liabilities (Note 28)
Other Liabilities (Note 21)
EquityEquity Attributable to Equity Holders of the Parent Company(1,413,868)(4,293,952)(1,413,868)(4,293,952)

5HPHDVXUHPHQWJDLQRQGHƓQHGEHQHƓWDVVHW 1RWH

88,21577,76088,21577,760

Cumulative translation adjustment

190,471

27,469190,471

27,469Remeasurement gain on life insurance reserves

92,10396,387

92,10396,387

1,246,194

5,481,992

1,246,194

5,481,992

150,222,149

134,510,072

150,222,149

134,510,072

76,252

68,538––150,298,401

134,578,610

150,222,149

134,510,072— 1,478,043,222
P—1,329,729,466
P—1,336,529,449
P—1,218,672,895
P

Hedge-related reserve (Note 26)
Non-controlling Interest (Note 11)

See accompanying Notes to Financial Statements.
C HI NA BANK I NG COR P O R AT I O N

119China Banking Corporation And Subsidiaries
Statements Of Income(Amounts In Thousands, Except Earnings Per Share)

Consolidated

Parent Company
Years Ended December 31

2023

2022

2021

2023

2022

2021

Loans and receivables (Notes 10 and 30)—51,690,659
P—
P 39,553,071—
P 34,700,337—41,485,837
P—
P 32,002,643

28,948,921

Investment securities at amortized costand at fair value through other comprehensive income(Note 9)23,236,340

15,060,053

9,193,747

22,730,827

14,776,396

8,934,652

Due from Bangko Sentral ng Pilipinas and other banks,interbank loans receivable, and securities purchased underresale agreements (Notes 7 and 8)

3,700,672

2,139,618

1,863,599

2,534,718

1,694,026

1,525,166

740,362

458,670738,643738,999458,670738,643

79,368,033

57,211,412

46,496,326

67,490,381

48,931,735

40,147,382

Deposit liabilities (Notes 17 and 30)

21,740,569

8,824,483

5,111,577

17,151,871

7,342,011

4,272,332

Bonds payable, bills payable and other borrowings(Notes 18 and 19)

3,852,869

2,615,608

2,104,471

3,852,827

2,615,607

2,104,470

246,790

181,789

195,310

193,355

141,000

152,194

25,840,228

11,621,880

7,411,358

21,198,053

10,098,618

6,528,996

NET INTEREST INCOME

53,527,805

45,589,532

39,084,968

46,292,328

38,833,117

33,618,386

Trading and securities gain (loss) - net (Notes 9 and 22)

1,129,032

927,538(64,005)

1,038,063

913,709(110,743)

Service charges, fees and commissions (Note 22)

3,300,169

2,863,078

2,715,372

1,921,936

1,698,390

1,438,614

INTEREST INCOME)LQDQFLDODVVHWVDWIDLUYDOXHWKURXJKSURƓWRUORVV
INTEREST EXPENSE

Lease payable (Note 27)

Gain on disposal and redemption of investment securities atamortized cost (Note 9)

78

1,923

4,063,927

78

1,923

4,063,927

585,915

473,828450,965585,915

473,828450,965(7,354,800)(555,316)

686,861(7,362,476)(568,087)

678,431

Gain on sale of investment properties

602,836

698,802388,295

212,126

250,612238,891

Share in net income (loss) of an associate (Note 11)435,075

285,059(1,609)435,075

285,059(1,609)Gain on asset foreclosure and dacion transactions (Note 13)419,748

145,801

87,485373,936

181,624

31,552–––2,541,697

2,044,686

1,422,503

Trust fee income (Note 29)
Foreign exchange gain (loss) - net (Note 26)

Share in net income of subsidiaries (Note 11)
Miscellaneous (Notes 22 and 30)

1,445,597

5,222,179

1,262,841

1,176,462

4,998,275

1,118,731

TOTAL OPERATING INCOME

54,091,455

55,652,424

48,675,100

47,215,140

49,113,136

42,949,648

3URYLVLRQIRULPSDLUPHQWDQGFUHGLWORVVHV 1RWHb

1,246,003

9,012,633

8,876,744

208,011

7,427,202

7,679,877&RPSHQVDWLRQDQGIULQJHEHQHƓWV(Notes 25 and 30)

8,969,408

8,145,029

7,505,384

7,033,384

6,432,409

5,899,761

Taxes and licenses

5,628,497

4,729,828

3,529,491

4,405,025

3,954,612

2,901,338

Insurance

2,744,739

2,284,645

2,061,059

2,391,242

2,015,047

1,805,915'HSUHFLDWLRQDQGDPRUWL]DWLRQ 1RWHVbDQG

2,006,146

1,737,144

1,787,166

1,527,440

1,317,159

1,364,324

Occupancy cost (Notes 27 and 30)

2,230,649

2,163,226

2,090,909

1,696,216

1,611,922

1,657,902

Professional fees, marketing and other related services

848,561

727,288632,857

704,971579,516

559,649

Transportation and traveling699,430

576,755

594,063524,270

429,856

479,985

Entertainment, amusement and recreation

519,953

560,206

490,278

411,443456,625

381,601

Stationery, supplies and postage

237,994

225,425

218,238

166,250

160,711

149,719

Repairs and maintenance

228,331

184,686

173,825

180,287

154,317140,177

Miscellaneous (Notes 22 and 30)

2,923,617

3,020,097

3,251,863

2,657,273

2,604,268

2,773,517

TOTAL OPERATING EXPENSES

28,283,328

33,366,962

31,211,877

21,905,812

27,143,644

25,793,765

INCOME BEFORE INCOME TAX

25,808,127

22,285,462

17,463,223

25,309,328

21,969,492

17,155,883

PROVISION FOR INCOME TAX (Note 28)

3,789,903

3,149,662

2,357,000

3,298,538

2,861,988

2,067,551—22,018,224
P—P 19,135,800—
P 15,106,223—22,010,790
P—
P 19,107,504

15,088,332—22,010,790
P—19,107,504
P—
P 15,088,332

7,434

28,296

17,891—22,018,224
P—19,135,800
P—
P 15,106,223

NET INCOME
Attributable to:(TXLW\KROGHUVRIWKH3DUHQW&RPSDQ\ 1RWHb
Non-controlling interest%DVLF'LOXWHG(DUQLQJV3HU6KDUH 1RWHb
See accompanying Notes to Financial Statements.

120

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

—8.18
P

—
P 7.10— 5.61PChina Banking Corporation And Subsidiaries
Statements Of Comprehensive Income(Amounts In Thousands)

Consolidated

Parent Company
Years Ended December 31

2023

2022

2021

2023

2022

2021

— 22,018,224
P—P 19,135,800—
P 15,106,223— 22,010,790
P—
P 19,107,504—
P 15,088,332

Fair value gain (loss) for the year, net of tax

2,068,782(4,129,185)(60,479)

2,102,503(4,020,071)(27,185)*DLQWDNHQWRSURƓWRUORVV 1RWH (326,063)(3,465)(60,316)(326,063)(3,465)(40,937)

Translation gain (loss) for the year

68,446(140,939)

101,374(12,931)(176,458)

89,570

/RVV JDLQ WDNHQWRSURƓWRUORVV

94,425

151,412(89,104)

94,425

151,412(89,104)

Fair value gain (loss) for the year, net of tax(9,236,057)

4,258,550

1,271,502(9,236,057)

4,258,550

1,271,502

/RVV JDLQ WDNHQWRSURƓWRUORVV 1RWH 

5,000,259

246,607226,541

5,000,259

246,607226,541

140,244(213,444)(103,148)

140,244(213,444)(103,148)

1HWXQUHDOL]HGORVVRQGHEWƓQDQFLDO
assets at FVOCI

–

–

–

(34,263)(107,021)(52,037)

Cumulative translation adjustment

–

–

–

81,50834,911

11,603NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS),WHPVWKDWUHF\FOHWRSURƓWRUORVVLQVXEVHTXHQWSHULRGV&KDQJHVLQIDLUYDOXHRIGHEWƓQDQFLDODVVHWVDWIDLUYDOXH
through other comprehensive income (FVOCI):

Changes in cumulative translation adjustment

Changes in hedge-related reserves



6KDUHLQFKDQJHVLQIDLUYDOXHRIƓQDQFLDODVVHWVDW)92&,RI
an associate (Note 11)
Share in changes in other comprehensive income (loss) of
subsidiaries (Note 11):

,WHPVWKDWGRQRWUHF\FOHWRSURƓWRUORVVLQVXEVHTXHQWSHULRGV&KDQJHVLQIDLUYDOXHRIHTXLW\ƓQDQFLDODVVHWVDW)92&,
Fair value gain (loss) for the year, net of tax

997,698(31,217)

10,392907,229(16,777)

10,965

5HPHDVXUHPHQWJDLQRQGHƓQHGEHQHƓWDVVHWQHWRIWD[(Note 25)

14,615

103,494

400,652

66,050114,308

343,496

1HWXQUHDOL]HGJDLQ ORVV RQHTXLW\ƓQDQFLDODVVHWV
at FVOCI–––

90,434(14,374)(573)

5HPHDVXUHPHQWJDLQ ORVV RQGHƓQHGEHQHƓWSODQ

–

–

–

(51,269)(10,751)

56,256

Remeasurement gain (loss) on life insurance reserves(4,284)110,416

31,874(4,284)110,416

31,8745HPHDVXUHPHQWJDLQ ORVV RQGHƓQHGEHQHƓWSODQ(4,326)

4,693(3,245)(4,326)

4,693(3,245)OTHER COMPREHENSIVE INCOME (LOSS) FOR THE YEAR,NET OF TAX(1,186,261)

356,922

1,726,043(1,186,541)

358,536

1,725,578

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

— 20,831,963
P—
P 19,492,722—
P 16,832,266— 20,824,249
P—
P 19,466,040—
P 16,813,910— 20,824,249
P— 19,466,040
P— 16,813,910
P

7,714

26,682

18,356— 20,831,963
P—
P 19,492,722—
P 16,832,266

Share in changes in other comprehensive income (loss) of
subsidiaries (Note 11):

Share in changes in other comprehensive income of an
associate (Note 11)

Total comprehensive income attributable to:Equity holders of the Parent Company
Non-controlling interest

See accompanying Notes to Financial Statements.

C HI NA BANK I NG COR P O R AT I O N

121China Banking Corporation And Subsidiaries
Statements Of Changes In Equity(Amounts In Thousands)

Capital Stock(Note 24)

Capital Paidin Excess of
Par Value(Note 24)

Other Equity- Stock Grants(Note 24)

SurplusReserves(Notes 24
and 29)Surplus(Notes 24
and 29)— 26,912,882
P—17,200,758
P—–P— 4,923,115
P— 84,083,661
P

–

–

–

–

22,010,790

521

755

–

–

–

Transfer from surplus to surplus reserves (Note 24)

–

–

–

58,592(58,592)

Appropriation of retained earnings (Notes 16 and 24)

–

–

–

21,946(21,946)

Cash dividends - —P 1.90 per share

–

–

–

–

(5,113,448)

Balance at December 31, 2023

— 26,913,403
P—17,201,513
P—–P— 5,003,653
P— 100,900,465
P

Balance at January 1, 2022

—26,912,882
P—17,200,758
P—P–— 4,183,413
P

69,752,791

Total comprehensive income (loss) for the year

–

–

–

–

19,107,504

Transfer from surplus to surplus reserves (Note 24)

–

–

–

47,383(47,383)

Appropriation of retained earnings (Notes 16 and 24)

–

–

–

692,319(692,319)

Balance at January 1, 2023
Total comprehensive income (loss) for the year
Stock grants

Cash dividends - —P 1.50 per share

–

–

–

Balance at December 31, 2022—
P 26,912,882—
P 17,200,758—
P–—
P 4,923,115—
P 84,083,661

Balance at January 1, 2021—
P 26,858,998—17,122,626
P—140,924P— 3,194,716
P— 58,339,056
P

–

–

–

–

15,088,332

53,884

78,132(140,924)–

Transfer from surplus to surplus reserves (Note 24)

–

–

–

45,096(45,096)

Appropriation of retained earnings (Notes 16 and 24)

–

–

–

943,601(943,601)—
P 4,183,413—
P 69,752,791

Total comprehensive income (loss) for the year
Stock grants

Cash dividends - —P 1.00 per share
Balance at December 31, 2021

See accompanying Notes to Financial Statements.

122

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

–

–

–

—
P 26,912,882—
P 17,200,758—
P–(4,036,932)(2,685,900)

Consolidated
Equity Attributable to Equity Holders of the Parent Company
Net Unrealized
Gains (Losses)
on Financial
Assets at
Fair Value
through Other
Comprehensive
Income (Note 9)

Remeasurement
Gain (Loss) on'HƓQHG%HQHƓW$VVHW
or Liability(Note 25)

Cumulative
Translation
Adjustment

Remeasurement
Gain (Loss) on
Life Insurance
Reserves

Cash Flow
Hedge
Reserve

Total Equity

Non- Controlling
Interest(Note 11)

Total Equity— 4,293,952)(P—77,760
P— 27,469
P—96,387P—5,481,992
P—134,510,072
P—68,538
P—134,578,610
P

2,880,084

10,455

163,002(4,284)(4,235,798)

20,824,249

7,714

20,831,963

–

–

–

–

–

1,276

–

1,276

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(5,113,448)–(5,113,448)— 1,413,868)(P—88,215P—190,471
P—92,103P—1,246,194
P—150,222,149
P—76,252
P—150,298,401
P

81,200—30,489)(P—
P 17,604—14,029)(P—976,834P—119,080,964
P—41,856P—119,122,820
P(4,375,152)

108,249

9,865

110,416

4,505,158

19,466,040

26,682

19,492,722

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(4,036,932)–(4,036,932)— 4,293,952)(P—
P 77,760—
P 27,469—
P 96,387—
P 5,481,992—
P 134,510,072—
P 68,538—
P 134,578,610—
P 294,115— 426,996)(P—5,535
P—45,903)(P—521,209)(P—104,961,862
P—23,500
P—104,985,362
P(212,915)

396,507

12,06931,874

1,498,043

16,813,910

18,356

16,832,266

–

–

–

–

–

(8,908)–(8,908)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(2,685,900)–(2,685,900)—
P 81,200—30,489)(P—
P 17,604—14,029)(P—P 976,834—
P 119,080,964—
P 41,856—
P 119,122,820

C HI NA BANK I NG COR P O R AT I O N

123

Capital Stock(Note 24)

Capital Paidin Excess of
Par Value(Note 24)

Other Equity Stock Grants(Note 24)

SurplusReserves(Notes 24
and 29)— 26,912,882
P— 17,200,758
P—–P— 4,923,115
P

–

–

–

–

521

755

–

–

Transfer from surplus to surplus reserves (Note 24)

–

–

–

58,592

Appropriation of retained earnings (Notes 16 and 24)

–

–

–

21,946

Cash dividends - —P 1.90 per share

–

–

–

–

Balance at December 31, 2023

— 26,913,403
P— 17,201,513
P—–P— 5,003,653
P

Balance at January 1, 2022

— 4,183,413
P

Balance at January 1, 2023
Total comprehensive income (loss) for the year
Stock grants— 26,912,882
P— 17,200,758
P—–P

Total comprehensive income (loss) for the year

–

–

–

–

Transfer from surplus to surplus reserves (Note 24)

–

–

–

47,383

Appropriation of retained earnings (Notes 16 and 24)

–

–

–

692,319

Cash dividends - —P 1.50 per share

–

–

–

Balance at December 31, 2022—
P 26,912,882—
P 17,200,758—
P–—
P 4,923,115

Balance at January 1, 2021

— 26,858,998
P— 17,122,626
P—
P 140,924— 3,194,716
P

–

–

–

–

53,884

78,132(140,924)–

Transfer from surplus to surplus reserves (Note 24)

–

–

–

45,096

Appropriation of retained earnings (Notes 16 and 24)

–

–

–

943,601

Cash dividends - —P 1.00 per share

–

–

–

—
P 26,912,882—
P 17,200,758—
P–

Total comprehensive income (loss) for the year
Stock grants

Balance at December 31, 2021

See accompanying Notes to Financial Statements.

124

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT—
P 4,183,413

Parent Company

Surplus(Notes 24
and 29)Net Unrealized
Gains (Losses)
on Financial
Assets at Fair
Value through
Other
Comprehensive
Income(Note 9)Remeasurement
Gain (Loss) on'HƓQHG%HQHƓW$VVHW
or Liability(Note 25)

Cumulative
Translation
Adjustment

Remeasurement
Gain (Loss) on
Life Insurance
Reserves

Hedge-related
Reserve

Total Equity— 84,083,661
P— 4,293,952)(P— 77,760P— 27,469
P— 96,387P— 5,481,992
P— 134,510,072
P

22,010,790

2,880,084

10,455

163,002(4,284)(4,235,798)

20,824,249

–

–

–

–

–

–

1,276

(58,592)

–

–

–

–

–

–

(21,946)

–

–

–

–

–

–

(5,113,448)

–

–

–

–

–

(5,113,448)— 100,900,465
P— 1,413,868)(P— 88,215
P— 190,471
P— 92,103P— 1,246,194
P— 150,222,149
P—
P 69,752,791— 81,200P— 30,489)(P— 17,604P— 14,029)(P— 976,834
P— 119,080,964
P

19,107,504(4,375,152)

108,249

9,865

110,416

4,505,158

19,466,040(47,383)

–

–

–

–

–

–

(692,319)

–

–

–

–

–

–

–

–

–

–

(4,036,932)(4,036,932)—
P 84,083,661— 4,293,952)(P—
P 77,760—
P 27,469—
P 96,387—
P 5,481,992—
P 134,510,072—
P 58,339,056— 294,115
P— 426,996)(P— 5,535P— 45,903)(P— 521,209)(P— 104,961,862
P

396,507

12,06931,874

1,498,043

16,813,910

–

–

–

–

–

(8,908)(45,096)

–

–

–

–

–

–

(943,601)

–

–

–

–

–

–

(2,685,900)

–

–

–

–

–

(2,685,900)—
P 69,752,791—
P 81,200— 30,489)(P—P 17,604— 14,029)(P—P 976,834—
P 119,080,964

15,088,332

C HI NA BANK I NG COR P O R AT I O N

125China Banking Corporation And Subsidiaries
Statements Of Cash Flows(Amounts In Thousands)

Consolidated

Parent Company
Years Ended December 31

2023

2022

2021

2023

2022

2021

P25,808,127

P22,285,462

P17,463,223

P25,309,328

P21,969,492

P17,155,883

Depreciation and amortization(Notes 12, 13 and 14)

2,006,146

1,737,144

1,787,166

1,527,440

1,317,159

1,364,324

Provision for impairment and credit losses(Note 16)

CASH FLOWS FROM OPERATING ACTIVITIESIncome before income tax
Adjustments for:

1,246,003

9,012,633

8,876,744

208,011

7,427,202

7,679,877

Amortization of transaction costs and other non-cash
movements on bonds payable (Note 18)

39,687126,063

83,022

39,687126,063

83,022

6HFXULWLHVJDLQRQƓQDQFLDODVVHWVDWIDLUYDOXHWKURXJKother comprehensive income and investment
securities at amortized cost (Note 22)(326,141)(5,388)(4,124,243)(326,141)(5,388)(4,104,864)

Gain on sale of investment properties(602,836)(698,802)(388,295)(212,126)(250,612)(238,891)

Gain on asset foreclosure and dacion transactions(Note 13)(419,748)(145,801)(87,485)(373,936)(181,624)(31,552)

Share in net loss (income) of an associate(Notes 2 and 11)(435,075)(285,059)

1,609(435,075)(285,059)

1,609

–

–

–

(2,541,697)(2,044,686)(1,422,503)

Share in net income of subsidiaries(Notes 2 and 11)
Changes in operating assets and liabilities:
Decrease (increase) in the amounts of:Financial assets at fair value throughSURƓWRUORVV(8,903,707)(2,582,059)

5,620,336(9,127,487)(3,120,918)

6,183,974

Loans and receivables(74,905,013)(102,457,363)(60,053,495)(50,916,599)(79,216,499)(59,354,783)

231,340

9,378,000

2,730,389

783,3438,866,423

2,094,083

Deposit liabilities

120,808,878

203,054,780

27,629,067

91,156,185

177,199,669

31,245,992

Manager’s checks

558,794(303,937)

286,374

123,655(170,250)

400,261

Accrued interest and other expenses

2,473,321

1,370,028

839,772

2,099,802

1,074,199

745,807

Other liabilities and derivative
liabilities

Other assets
Increase (decrease) in the amounts of:(3,864,451)

6,843,231

767,884(3,282,393)

7,274,719

443,185

Net cash generated from operations

63,715,325

147,328,932

1,432,068

54,031,997

139,979,890

2,245,424

Income taxes paid

(5,276,289)(3,587,642)(1,764,692)(4,723,460)(3,101,705)(1,422,931)

Net cash provided by (used in) operating activities

58,439,036

143,741,290(332,624)

49,308,537

136,878,185

822,493

CASH FLOWS FROM INVESTING ACTIVITIES$FTXLVLWLRQVRI$GGLWLRQVWR%DQNSUHPLVHVIXUQLWXUHƓ[WXUHVDQGHTXLSPHQWDQG
capitalized software (Note 12)(1,565,674)(2,064,403)(632,109)(1,144,703)(1,612,437)(428,494)

Investment securities at amortized cost

(85,060,985)(185,997,437)(259,499,749)(83,791,451)(182,910,629)(258,538,503)

Financial assets at fair value through other comprehensive income(65,309,075)(21,195,283)(60,990,126)(54,353,741)(20,927,405)(59,739,708)

Investment securities at amortized cost

1,650,091

78,823

59,838,517

1,650,091

78,823

59,838,517

Financial assets at fair value through other comprehensive income

5,138,625

2,392,523

52,512,838

4,676,504

2,248,704

51,545,295

Investment properties

1,581,052

1,297,207

907,423

428,651

378,025

327,875

537,764

144,493

489,036

277,589

5,174

345,866

60,930,351

73,072,428

162,908,132

60,371,692

70,478,028

162,708,584

160,000–

40,000235,000

75,00040,000–––(1,000,000)––(81,937,851)(132,271,649)(44,426,038)(72,650,368)(132,186,717)(43,900,568)

Proceeds from sale or redemption of:

%DQNSUHPLVHVIXUQLWXUHƓ[WXUHVDQGHTXLSPHQW
Proceeds from maturity of:
Investment securities at amortized cost
Cash dividends received from subsidiaries andassociate (Note 11)
Capital infusion in a subsidiary
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bills payable

563,532,304

402,436,767

193,908,669

563,532,304

402,436,767

193,908,669

Settlement of bills payable(548,623,126)(403,994,487)(152,843,847)(548,623,126)(403,994,487)(152,843,847)

Proceeds from issuance of bonds payable(Note 18)
Payments of cash dividends (Note 24)––

19,878,458––

19,878,458(P5,113,448)(P4,036,932)(P2,685,900)(P5,113,448)(P4,036,932)(P2,685,900)(Forward)

126

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

Consolidated

Parent Company
Years Ended December 31

6HWWOHPHQWRIERQGVSD\DEOH 1RWHb

2023

2022

2021

2023

2022

2021

(P8,322,167)(P15,000,000)(P30,000,000)(P8,322,167)(P15,000,000)(P30,000,000)

Payments of principal portion of lease liabilities(Note 27)

(665,311)(467,208)(597,435)(444,547)(263,672)(410,396)

1HWFDVKSURYLGHGE\ XVHGLQ ƓQDQFLQJDFWLYLWLHV

P808,252(P21,061,860)

P27,659,945

P1,029,016(P20,858,324)

P27,846,984(P22,690,563)(P9,592,219)(P17,098,717)(P22,312,815)(P16,166,856)(P15,231,091)

Cash and other cash items

P13,689,421

P16,024,863

P15,984,210

P10,073,767

P13,649,247

P13,724,265

Due from Bangko Sentral ng Pilipinas (Note 7)

107,100,295

124,283,115

152,156,449

92,920,540

114,528,773

141,811,190

Due from other banks (Note 7)

13,614,609

10,694,312

18,228,721

12,347,169

9,897,264

17,197,750

NET DECREASE IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR

Interbank Loans Receivable and SPURA(Note 8)43,564,970

36,559,224

18,290,851

41,597,949

35,030,997

15,604,167

P177,969,295

P187,561,514

P204,660,231

P156,939,425

P173,106,281

P188,337,372

Cash and other cash items

P15,998,094

P13,689,421

P16,024,863

P13,041,135

P10,073,767

P13,649,247

Due from Bangko Sentral ng Pilipinas (Note 7)

84,595,973

107,100,295

124,283,115

73,156,991

92,920,540

114,528,773

Due from other banks (Note 7)

19,964,415

13,614,609

10,694,312

17,352,830

12,347,169

9,897,264

CASH AND CASH EQUIVALENTS AT END
2)b<($5

Interbank Loans Receivable and SPURA(Note 8)34,720,250

43,564,970

36,559,224

31,075,654

41,597,949

35,030,997

P155,278,732

P177,969,295

P187,561,514

P134,626,610

P156,939,425

P173,106,281

OPERATING CASH FLOWS FROM INTEREST
Consolidated

Parent Company
For Years Ended December 31

2023

2022

2021

2023

2022

2021

Interest received

P77,684,904

P55,046,301

P46,638,694

P65,838,503

P46,629,590

P40,552,433

Interest paid

23,792,369

10,491,895

7,384,207

19,502,833

9,166,498

6,480,050

See accompanying Notes to Financial Statements.

C HI NA BANK I NG COR P O R AT I O N

127

CHINABANK

Branches
MAKATI MAIN BRANCH (HO)CBC Bldg., 8745 Paseo de Roxas
cor. Villar Sts., Makati City
Trunkline: 8885-5555(Private Exchange Connecting
All Departments)
Fax # 8892-0220; 8817-1325
BINONDO BUSINESS CENTER
CBC Bldg., Dasmariñas
cor. Juan Luna Sts. Binondo, Manila
Trunklines: 8247-5388; 8sat.885-5222(Private Exchange Connecting All
Departments)
Fax # 8241-7058; 8242-7225
METRO MANILA
A. BONIFACIO - MAUBAN BRANCH*)8UEDQ2DVLV5HVLGHQFHV$
Bonifacio Ave., Brgy. San Jose, Quezon City
Tel # 8282-1991; 8282-1994
Fax # 8282-1994
ALABANG HILLS BRANCH*)5%&0'&&RUSRUDWH&HQWHU'RQ-HVXV
Blvd., Alabang Hills Village, Muntinlupa City
Tel # 8877-8567; 8877-8604
Fax # 8877-8604
ALVARADO BRANCH
Alvarado St. Binondo, Manila
Tel # 8562-3863; 8562-3866
Fax # 8562-3866
ANONAS BRANCH
Anonas corner Marang Streets,
Brgy. Quirino, Project 2, Quezon City
Tel # 8277-9397
Fax# 8277-9378
ANTIPOLO CITY BRANCH*)%XGJHW/DQH$UFDGH1R3URYLQFLDORoad, Brgy. San Jose, Antipolo City, Rizal
Tel # 8650-3277; 8650-2087; 8695-1509;
Fax # 8650-2640
ANTIPOLO CITY - TAKTAK BRANCH
Sumulong Highway corner Taktak Road,
Brgy. Dela Paz, Antipolo City, Rizal
Tel # 8721-6320; 8721-6087
Fax # 8721-6316
ANTIPOLO - SUMULONG HIGHWAY
BRANCHNo. 219 Sumulong Highway, Brgy. Mambugan, Antipolo City, Rizal
Tel # 8632-7573; 8655-8087
Fax # 8632-7309
ARANETA AVE. BRANCH
Philippine Whithasco Bldg., 420 Araneta
Avenue, cor. Bayani St., Quezon City
Tel # 8731-2252; 8731-2261; 8732-4153
8731-2243; 3410-3026
Fax # 3410-6753

128

ARNAIZ AVE. BRANCH
United Life Assurance Building,
A. Arnaiz Ave. (Pasay Road), Makati City
Tel #Fax # 8541-1506
ARRANQUE BRANCHKDC Tower, 608 Tomas Mapua St.,
Sta. Cruz, Manila
Tel # 8733-3477; 8734-4777; 8733-7704;
8734-4497; 8734-4501; 8734-4506
Fax # 8733-3481
AURORA BLVD. - NEW MANILA BRANCH
Aurora Blvd., Brgy. Valencia, Quezon City
Tel # 8727-4192; 8727-4171
Fax # 8727-4171
ASUNCION BRANCH
Units G6 & G7 Chinatown Steel Towers,
Asuncion St., San Nicolas, Manila
Tel # 8241-2311; 8241-2359; 8241-2361;
8241-2335
Fax # 8241-2352
AYALA - ALABANG BRANCH*)&%&%XLOGLQJ$FDFLD$YH
Madrigal Business Park, Ayala Alabang,
Muntinlupa City
Tel # 8807-0673; 8807-0674; 8850-3785;
8850-9640; 8850-8888
Fax # 8850-8670
AYALA AVE. – AMORSOLO BRANCH*)7HOHSHUIRUPDQFH%OGJ
Ayala Ave., Makati City
Tel # 8541-7348; 8541-5958
Fax # 8541-5958
AYALA - COLUMNS BRANCH*)7KH&ROXPQV7RZHU
Ayala Avenue, Makati City
Tel # 7915-3672; 7915-3673; 7915-3674;
7915-3675
Fax # 7915-3672
AYALA MALLS – MANILA BAY BRANCH
Level 2 Ayala Malls Manila Bay,D. Macapagal Ave., Parañaque City
Tel # 8352-7758; 8292-4576
Fax # 8292-4576
BACLARAN- F.B. HARRISON BRANCHBAGPI Main Bldg., 2935 F.B. Harrisoncor. Ortigas St., Pasay City
Tel # 8838-5038; 8838-6187
Fax # 8838-5038
BALINTAWAK-BONIFACIO BRANCH
657 A. Bonifacio Avenue,
Balintawak, Quezon City
Tel # 8361-3449; 8361-7825; 8362-3660;
8361-0450
Fax # 8361-0199

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTBALUT BRANCHNorth Bay Shopping Center Honorio Lopez
Boulevard, Balut, Tondo, Manila
Tel # 8253-9921; 8253-9929; 8253-9620;
8251-1182; 8251-1186
Fax # 8253-9917
BANAWE BRANCHCBC Building, 680 Banawe Avenue, Sta.
Mesa Hts. District I, Quezon City
Tel # 8743-7486; 8743-7488; 8711-8694;
3416-7028; 3416-7030
Fax # 8743-7487
BANAWE- CALAMBA BRANCH
119 Banawe St. corner Calamba St.
Quezon City
Tel # 8732-1060; 8740-4864
Fax # 8740-4864
BEL-AIR BRANCH)6DYLOOH%OGJ*LO3X\DW$YH
cor. Paseo de Roxas St., Makati City
Tel # 8897-2212; 8899-4186;
8899-0685
Fax # 8890-4062
BEL-AIR- JUPITER BRANCH
Buendia Car Exchange,
Jupiter Street, Makati City
Tel # 8403-5970; 8403-6062
Fax # 8403-6062
BETTER LIVING SUBD. BRANCH
128 Doña Soledad Ave., Parañaque City
Tel # 8556-3467; 8556-3468; 8556-3470
Fax # 8556-3470
BF HOMES BRANCH
Aguirre cor. El Grande Aves.,
United BF Homes, Parañaque City
Tel # 8825-6138; 8825-6891; 8825-6828
Fax # 8825-5979
BF HOMES- AGUIRRE BRANCH
Margarita Centre, Aguirre Ave. corner Elsie
Gaches Street, BF Homes, Parañaque City
Tel # 7799-4707; 7799-4942; 8659-3359;
8659-3360
Fax # 8659-3359
BF RESORT VILLAGE BRANCHBF Resort Drive cor. Gloria Diaz St.,
BF Resort Village Talon Dos, Las Piñas City
Tel # 8873-4542; 8873-4541; 8873-4540
Fax # 8873-4543
BGC- ICON PLAZA BRANCH*),FRQ3OD]D%OGJth cor 5th Sts.
Bonifacio South, Fort Bonifacio Global City,
Taguig City
Tel # 8777-1943; 8800-1474
Fax # 8777-1943
BGC- ONE WORLD PLACE BRANCH*)2QH:RUOG3ODFHQG$YHQXH)RUWBonifacio Global City, Taguig City
Tel # 8869-6309; 8843-2448
Fax # 8843-2448

BGC- W TOWER BRANCH*):7RZHUth St. North Bonifacio
Triangle BGC, Taguig City,1634
Tel # 8552-3311; 8551-9072
Fax # 8551-9072
BINANGONAN BRANCHNational Highway, Bo. Tagpos,
Binangonan, Rizal
Tel # 8669-1530; 8669-1659
Fax # 8669-1530
BLUMENTRITT BRANCH
1777-1781 Cavite corner Leonor Rivera St.,
Blumentritt, Sta. Cruz, Manila
Tel # 8742-0254; 8711-8589
Fax # 8711-8541
BO. KAPITOLYO BRANCH*)3 (%XLOGLQJ8QLWHGFRUQHU
First Sts. Bo. Kapitolyo, Pasig City
Tel # 8634-8370; 8634-8915; 8634-3697
Fax # 8634-7504
BONNY SERRANO BRANCH*)*UHHQKLOOV*DUGHQ6TXDUH
297 Col. Bonny Serrano Ave., Quezon City
Tel # 3410-0677; 8997-8043; 8997-8031
Fax # 3410-0677
CAINTA BRANCHCBC Bldg (Beside Sta. Lucia East Mall)
Felix Ave. (Imelda Ave.), Cainta, Rizal
Tel # 8646-0691; 8646-0693; 8645-9974;
8682-1795
Fax # 8646-0050
CAINTA – POBLACION BRANCH
A. Bonifacio Ave., Poblacion, Cainta, Rizal
Tel # 8637-1935
Fax # 8637-6634

COMMONWEALTH AVE. EXT. –CASA MILAN BRANCH$/;&HQWHU%XLOGLQJ&RPPRQZHDOWK$YH
Ext. North Fairview, Quezon City
Tel # 8463-5714
Fax # 8463-5714
CONGRESSIONAL AVENUE BRANCH*)8QLW&7KH$UHWH6TXDUH&RQJUHVVLRQDO
Ave., Project 8, Quezon City
Tel # 8351-8648; 8351-8645; 8351-8646
Fax # 8454-7383
CONGRESSIONAL AVE. EXTENSION –MIRA NILA BRANCHCBC Building Congressional Ave. Ext.,
Quezon City
Tel # 8932-2372; 8932-2370
Fax # 8932-2370
CONGRESSIONAL AVE. –PROJECT 8 BRANCH
159 Congressional Ave., Brgy. Bahay Toro,
Project 8, Quezon City
Tel # 8365-1737; 8365-1748
Fax # 8365-1737
CORINTHIAN HILLS BRANCH*)7KH&OXEKRXVH&RULQWKLDQ+LOOV7HPSOH
Drive Brgy. Ugong Norte, Quezon City
Tel # 8637-3170; 8637-3180;
8637-1915
Fax # 8637-1905
CUBAO - ARANETA BRANCH
Level 2, Ali Mall, Araneta Center, Cubao,
Quezon City
Tel # 8911-2369; 8911-2370; 8438-3830;
8438-3832; 8911-2397
Fax # 8911-8416

CAPITOL HILLS BRANCH*)'HVLJQ3UR%XLOGLQJ&DSLWRO+LOOVOld Balara, Quezon City
Tel # 8952-7776; 8952-7805; 8952-7804
Fax # 8952-7806

CUBAO - AURORA BRANCH
911 Aurora Boulevard Extension corner
Miami Street, Cubao, Quezon City
Tel # 8912-5164; 8912-5157; 8913-4675;
8913-4676; 8911-3524
Fax # 8912-5167

CENTURY CITY- KNIGHTSBRIDGEBRANCH
Unit 17 & 18 Knightsbridge Residences,
Century City, Kalayaan Ave. Makati City
Tel # 8866-3937; 8866-3803
Fax # 8866-3937

CUBAO - P. TUAZON BRANCH
No. 287 P. Tuazon Ave. near corner
18th Avenue, Brgy. San Roque,
Cubao, Quezon City
Tel # 8911-5896; 8911-8416; 8661-5057
Fax # 8911-8416

COMMONWEALTH AVENUE BRANCHLGF Ever Gotesco Mall, CommonwealthCenter, Commonwealth Avenue corner
Don Antonio Road, Quezon City
Tel # 8932-0818; 8932-0820; 3431-5000;
3431-5001
Fax # 8932-0822

CULIAT- TANDANG SORA BRANCH*)5R\DO0LGZD\3OD]D1R7DQGDQJ
Sora Ave. Brgy. Culiat, 1128 Quezon City
Tel # 8288-2575; 8288-5114
Fax # 8288-2575
D. TUAZON BRANCH
148 D. Tuazon St., Brgy. Lourdes,
Sta. Mesa Heights, Quezon City
Tel # 8731-2516; 8731-2508
Fax # 8731-0592

DAMAR VILLAGE BRANCH
Clubhouse, Damar Village, Quezon City
Tel # 8442-3581; 8367-5517
Fax # 8367-5517
DASMARIÑAS VILLAGE BRANCH
2283 Pasong Tamo Ext. corner Lumbang
Street, Makati City
Tel # 8894-2392; 8894-2393; 8813-2958
Fax # 8894-2355
DILIMAN – MATALINO BRANCH
J&L Building, #23 Matalino Street,
Diliman, Quezon City
Tel # 8936-8729; 8937-5004
Fax # 8937-5004
DIVISORIA - STA. ELENA BRANCHNew Divisoria Condominium Center,
632 Sta. Elena St. Binondo, Manila
Tel # 8247-1435; 8247-1436; 8247-1437
Fax # 8247-1436
DON ANTONIO BRANCH*)5R\DOH3ODFH'RQ$QWRQLR$YH
Brgy. Old Balara, Quezon City
Tel # 8932-9477; 8952-9678; 8952-9354
Fax # 8952-9344
DEL MONTE AVENUE BRANCH
No. 497 Del Monte Ave. Bgry. Manresa,
Quezon City
Tel # 3413-2826; 3413-2825; 8961-8828;
8871-2745
Fax # 8361-1101
DEL MONTE - MATUTUM BRANCH
No. 202 Del Monte Avenue near corner
Matutum St. Brgy St. Peter, Quezon City
Tel # 8731-2535; 8731-2571;
8413-2118; 8416-7791
Fax # 8416-7791
E. RODRIGUEZ - ACROPOLIS BRANCH*)6XQFUHVW%XLOGLQJ
E. Rodriguez Jr. Ave., Quezon City
Tel # 8654-3607; 8654-3586
Fax # 8654-3586
E. RODRIGUEZ - CORDILLERA BRANCH
1R *)8QLWV  
E. Rodriguez Sr. Blvd.,
Brgy. Doña Josefa, Quezon City
Tel # (02) 8242-2897; (02) 8257-1512
Fax # (02) 8256-5292
E. RODRIGUEZ - HILLCREST BRANCH
No. 402 E. Rodriguez Sr. Blvd.,
Cubao, Quezon City
Tel # 8571-8927; 8571-8928; 8571-8929
Fax # 8571-8927
E. RODRIGUEZ SR. BLVD. BRANCHCBC Bldg., #286 E. Rodriguez Sr. Blvd.,
Brgy. Damayang Lagi, Quezon City
Tel # 7007-3466; 7210-0200; 8722-5860;
8722-5893;
Fax # 8726-2865

C HI NA BANK I NG COR P O R AT I O N

129

CHINABANKEASTWOOD CITY BRANCH
Unit D, Techno Plaza One, Eastwood City
Cyberpark, E. Rodriguez Jr. Ave.,(C-5) Bagumbayan, Quezon City
Tel # 8706-3491; 8706-3493; 8706-1979;
8706-3320; 8706-3448
Fax # 8706-1979
EASTWOOD CITY FELINA CORPORATE
PLAZA BRANCH*))HOLQD&RUSRUDWH3OD]D#5 Eastwood Ave., Eastwood City,
Quezon City
Tel # 8275-5541; 8275-5434
Fax # 8275-5541
EDSA - KALOOKAN BRANCH*)+*/%XLOGLQJ('6$.DORRNDQ&LW\
Tel # 8442-4338; 8442-4339; 8442-4340
Fax # 8442-4339
EDSA - TIMOG AVE. BRANCH*)5LFKZHOO&RUSRUDWH&HQWHU
102 Timog Ave., Brgy. Sacred Heart,
Quezon City
Tel # 8441-5225, 8441-5226, 8441-5227,
3412-9878
Fax # 8441-5228
ELCANO BRANCH*)(OFDQR7RZHU(OFDQR6WUHHWSan Nicolas, Manila
Tel # 8244-6760; 8244-6765; 8244-6779
Fax # 8244-6760
ERMITA BRANCH
Ground Floor A, Ma. Natividad Bldg.,#470 T. M. Kalaw cor. Cortada Sts.,
Ermita, Manila
Tel # 8525-6477; 8536-7794; 8525-6544;
8523-0074; 8523-9862
Fax # 8525-8137
ESCOLTA BRANCH
Burke Building, Escolta corner Burke Streets,
Binondo, Manila
Tel # 8363-1734; 8365-5408
Fax # 8363-1734ESPAÑA BRANCH
España cor. Valencia Sts., Sampaloc, Manila
Tel # 8741-9572; 8741-6209; 8741-6208;
8741-9565
Fax # 8741-6207
EXAMINER BRANCH
No. 1525 Quezon Ave. cor. Examiner St.,
West Triangle, Quezon City
Tel # 8376-3313; 8376-3314; 8376-3317;
8376-3318
Fax # 8376-3314
EVANGELISTA BRANCH
Evangelista corner Gen. Estrella Sts., Bangkal Makati City
Tel # 7759-5095; 7759-5096; 8856-0434;
8856-0433
Fax # 7759-5096
FAIRVIEW BRANCH*)3HDUO'ULYH&RPPHUFLDO&HQWHU
Commonwealth Ave. Corner Pearl Street,
Quezon City
Tel # 8937-5597; 8938-9636; 8937-8086;
8523-3639
Fax # 8937-8086

130

FAIRVIEW TERRACES BRANCHLGF Fairview Terraces, Quirino Highway
corner Maligaya Drive, Brgy. Pasong Putik,
Novaliches, Quezon City
Tel # 8285-5956; 8285-6058
Fax # 8285-5956

GREENHILLS BRANCH*)*LIW*DWH%OGJ*UHHQKLOOV6KRSSLQJ
Center, San Juan, Metro Manila
Tel # 8727-2798; 8726-9308; 8727-9520;
8727-3068; 8721-0556; 8721-0543
Fax # 8724-5078

FILINVEST CORPORATE CITY BRANCH*):LOFRQ'HSRW$ODEDQJ=DSRWHURDG
cor. Bridgeway Ave. Filinvest Corporate City,
Alabang, Muntinlupa
Tel # 8775-0097; 8775-0126; 8842-1993;
8775-2198;
Fax # 8775-0322

GREENHILLS - ANNAPOLIS BRANCH
Mercedes 1 Condominium, Annapolis St.,
Greenhills, San Juan, Metro Manila
Tel # 8470-3385; 8470-3380
Fax # 8470-3380

FILINVEST CORP. CITY - COMMERCENTER
BRANCH*)&RPPHUFHQWHU$ODEDQJ
Commerce Ave. cor. Filinvest Ave.,
Filinvest Corporate City, Alabang,
Muntinlupa City
Tel # 8805-0824; 8805-0827
Fax # 8805-0146
FILINVEST CORP. CITY – NORTHGATEBRANCH*)$HRQ&HQWUH%XLOGLQJ
Northgate Cyberzone,
Filinvest Corporate City, Alabang,
Muntinlupa City
Tel # 8776-1985; 8551-5569
Fax # 8776-1985
FIVE E-COM CENTER BRANCH*))LYH(FRP&HQWHU+DUERU'ULYHMOA Complex, Pasay City
Tel # 8815-1883; 8815-1884; 8815-1887
Fax # 8815-1883
FORT BONIFACIO GLOBAL CITY BRANCH*)0DUDMR7RZHUWK6WUHHWFRU
4th Avenue, Fort Bonifacio Global City,
Taguig City
Tel # 7799-9072; 7799-9074; 8856-4416;
8856-4891; 8856-5196
Fax # 8856-4416
GEN. LUIS – KATIPUNAN BRANCHCBC Building, Gen. Luis St. cornerKatipunan SB Road, Brgy. Nagkaisang
Nayon, Novaliches, Quezon City
Tel # 8285-5664; 8285-5665
Fax # 8285-5665
GIL PUYAT AVENUE BRANCH
Mitsu Bldg., No. 65 Sen. Gil Puyat Ave.,
Brgy. Palanan, Makati City
Tel # 8844-0492; 8844-0494; 8844-0688;
8844-0690
Fax # 8844-0497
GIL PUYAT – ELIZABETH PLACE BRANCH*)(OL]DEHWK3ODFH*LO3X\DW$YH
Makati City
Tel # 8776-0502; 8776-3234
Fax # 8766-0502

GREENHILLS - CONNECTICUT BRANCH*)0LVVRXUL6TXDUH%OGJ0LVVRXULFRU
Connecticut St. Northeast Greenhills,
San Juan, Metro Manila
Tel # 8997-3452; 8997-3455
Fax # 8997-3452
GREENHILLS - ORTIGAS BRANCH
CBC-Building, 14 Ortigas Avenue
Greenhills, San Juan, Metro Manila
Tel # 8723-0530; 8723-0501; 8723-0502;
8723-0504; 8726-1492
Fax# 8723-0556
HEROES HILLS BRANCH
Quezon Ave. corner J. Abad Santos Street
Heroes Hills, Quezon City
Tel # 8351-4359; 8351-5121; 8332-7665;
3412-5697; 3411-3375
Fax # 8351-5121
HOLY SPIRIT DRIVE BRANCHCBC Building Lot 18 Block 6 Holy Spirit
Drive, Don Antonio Heights,
Brgy. Holy Spirit, Quezon City
Tel # 8355-8665; 8277-7257; 8287-5387
Fax # 8355-8665
ILAYA BRANCH#947 APL-YSL Bldg., Ilaya, Tondo, Manila
Tel # 8245-2416; 8245-2548; 8245-2557
Fax # 8245-2545
INTRAMUROS BRANCH
No. 409 A. Soriano Avenue,
Intramuros, Manila
Tel # 8528-4241; 8536-1044; 8536-5971;
Fax # 8536-1044
J. ABAD SANTOS AVENUE BRANCH
2159 J. Abad Santos Ave., cor.
Batangas St., Tondo, Manila
Tel # 8255-1201; 8255-1202; 8255-1204
Fax # 8255-1203
J. ABAD SANTOS AVE. –QUIRICADA BRANCH
J. Abad Santos Ave. near corner
Quiricada Street, Manila
Tel # 8253-6803; 8253-6804
Fax # 8253-6803

GIL PUYAT AVE. – REPOSO BRANCH
No. 331 Gil Puyat Ave., Makati City
Tel # 8541-3739; 8541-3735
Fax # 8541-3735

JUAN LUNA BRANCH*)$FOHP%XLOGLQJ-XDQ/XQD6W
Binondo, Manila
Tel # 8247-3570; 8247-3795; 8247-3786;
8480-0211
Fax # 8247-3795

GREENBELT 1 BRANCH*)*UHHQEHOW/HJDVSL6WUHHWQHDU
corner Paseo de Roxas, Makati City
Tel # 8836-1387; 8836-1405; 8836-1406
Fax # 8836-1406

KANLAON BRANCH
Kanlaon near corner N. Roxas Streets,
Quezon City
Tel # 8367-0093; 8367-0095
Fax # 8367-0093

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTKALAYAAN AVE. BRANCH*)336%XLOGLQJ.DOD\DDQ$YHQXH
Quezon City
Tel # 8332-3858; 8332-3859; 8332-3860
Fax # 8332-3859
KALOOKAN BRANCHCBC Bldg., 167 Rizal Avenue Extension
Grace Park, Kalookan City
Tel # 8364-0515; 8364-0535; 8364-0717;
8364-0731; 8364-0494; 8364-9948;
8366-9457
Fax # 8364-9864
KALOOKAN - 8th AVE. BRANCH
No. 279 Rizal Avenue corner 8th Ave.,
Grace Park, Kalookan City
Tel # 8287-0001; 8287-0262
Fax # 8287-0262
KALOOKAN - 10th AVE. BRANCH
No. 275 10th Ave. corner 3rd Street,
Grace Park, Kalookan City
Tel # 8287-5484; 8287-5489
Fax # 8287-5489
KALOOKAN - CAMARIN BRANCH
L8B4 La Forteza Subd., Brgy. 175 Camarin,
Kalookan City
Tel # 8442-6830; 8442-7541; 8442-6825
Fax # 8442-6825
KALOOKAN - MONUMENTO BRANCH
779 Mc Arthur Highway, Kalookan City
Tel # 8364-2571; 8361-3270; 8921-3043;
8361-3271
Fax # 8361-3270
KAMIAS BRANCH*)&50%XLOGLQJ,,.DPLDV5RDG
corner Kasing-Kasing Street, Quezon City
Tel# 8920-7367; 8920-8770
Fax# 8920-5723
KAMUNING BRANCH#47 SKY47 Bldg., Kamuning Road,
Quezon City
Tel# 8287-3369; 8287-3368
Fax # 8287-3369
KARUHATAN BRANCH
No. 253-B McArthur Highway cor.
Bizotte Street, Karuhatan, Valenzuela City
Tel # 8291-0431; 8291-0175; 3440-0033;
8291-0073
Fax # 8291-0175
KATIPUNAN AVE. – ST. IGNATIUS BRANCHCBC Building, No. 121 Katipunan Ave.,
Brgy. St. Ignatius, Quezon City
Tel # 8913-5532; 8912-5003; 8913-3226
Fax # 8913-5532
KATIPUNAN AVE. – LOYOLA HEIGHTSBRANCH
Elizabeth Hall, Katipunan Ave., Loyola
Heights, Quezon City
Tel # 8287-9218
Fax # 8287-9221
LAGRO BRANCHCBC Building, Lot 32 Blk 125,
Quirino Highway, Greater Lagro,
Quezon City
Tel # 8372-8226; 8372-8223
Fax # 8372-8226

LAS PIÑAS BRANCH
CBC- Bldg., Alabang-Zapote Road cor.
Aries St., Pamplona Park Subd.,
Las Piñas City
Tel # 8874-6204; 8874-6210
Fax # 8874-6414

M. DELA FUENTE –TRABAJO MARKET BRANCH#771 M. dela Fuente St.
(Trabajo Market area), Sampaloc, Manila
Tel # 8522-2083; 8522-2028
Fax # 8522-2083

LAS PIÑAS - MANUELA BRANCH
Alabang-Zapote Road cor Philamlife Ave.,
Pamplona Dos, Las Piñas City
Tel # 8872-9801; 8872-9572; 8872-9533;
8871-0770
Fax # 8871-0771

MACAPAGAL AVE. ASEANA SQUARE BRANCH
Aseana Square (Caltex Area),
D. Macapagal Ave., Aseana City,
Parañaque City
Tel # 8296-7246; 8296-7235
Fax # 8296-7235

LAS PIÑAS - MARCOS ALVAREZ AVE.
BRANCH
Metro Towne Center, 2020 Marcos Alvarez
Ave., Talon V, Moonwalk, Las Piñas City
Tel # 8838-9865; 838-9724
Fax # 838-9786
LAS PIÑAS – NAGA ROAD BRANCH
Lot 3, Naga Road, Pulanglupa 2,
Las Piñas City
Tel # 8541-1671
Fax # 8541-1674
LAVEZARES BRANCH
No. 412 Lavezares Street,
San Nicolas, Manila
Tel # 8521-6978; 521-7132; 521-7128
Fax # 8521-7128
LEGASPI VILLAGE - AMORSOLO BRANCH*)&$3%OGJ+HUUHUDFRU$PRUVROR6WVLegaspi Village, Makati City
Tel # 8832-6871; 8833-5668
Fax # 8833-5668
LEGASPI VILLAGE - AIM BRANCH*)&DFKR*RQ]DOHV%XLOGLQJ
101 Aguirre cor. Trasierra Streets,
Legaspi Village, Makati City
Tel # 8818-0734; 8818-9649; 8894-5882;
8894-5883; 8894-5884; 8894-5885
Fax # 8818-0240
LEGASPI VILLAGE - C. PALANCA BRANCH
G)-&6%XLOGLQJ'HOD5RVDFRU
C. Palanca Sts., Legaspi Village, Makati City
7HO 
4684
Fax # 8894-5868
LEGASPI VILLAGE - ESTEBAN BRANCH*)33,%OGJ1R(VWHEDQ6W
Legaspi Village, Makati City
Tel # 8800-6147; 8805-4820
Fax # 8805-4820
LEGASPI VILLAGE - PEREA BRANCH*)*UHHQEHOW0DQVLRQ3HUHD6W
Legaspi Village, Makati City
7HO 
Fax # 8893-2272
LEGASPI VILLAGE - SALCEDO BRANCH*))HGPDQ6XLWHV6DOFHGR6WUHHWLegaspi Village, Makati City
Tel # 8893-7680; 8893-2618; 7759-2462
8893-1503; 8816-0905
Fax # 8893-3746

MACAPAGAL AVE. – BIOPOLIS BRANCH*)7KH%LRSROLV&HQWUDO%XVLQHVV3DUN$'LRVGDGR0DFDSDJDO$YHQXH
Pasay City
Tel # 8838-9677
Fax # 8838-9679
MACAPAGAL AVE. –DOUBLEDRAGON BRANCHDD Meridian Park Plaza, Macapagal Ave.
cor. EDSA Ext., Pasay City
Tel # 838-3805; 838-3804
Fax # 838-3804
MAGALLANES VILLAGE BRANCH*)'+,%OGJ1R/DSX/DSX$YH
corner EDSA, Magallanes Village,
Makati City
Tel # 7757-0272; 7757-0240; 8852-1290;
8852-1245
Fax # 8852-1245
MAKATI AVENUE BRANCH*)&%&%XLOGLQJ Makati Ave. cor.
Hercules St., Makati City
Tel # 8890-6971; 8890-6972; 8890-6973;
8890-6974
Fax # 8890-6975
MAKATI - COMEMBO BRANCH
No. 46 JP Rizal Ext., Brgy. Comembo,
Makati City
Tel # 8802-2616; 8802-2614; 8802-2613
Fax # 8802-2613
MAKATI - JP RIZAL BRANCH
JP Rizal corner Honradez Streets, Makati City
Tel# 8815-6036; 8815-6037; 8815-6038
Fax # 8815-6037
MAKATI – KALAYAAN AVE. BRANCH
8445 Zentro Building, Kalayaan Ave.,
Brgy. Poblacion, Makati City
Tel # 8838-7253; 8838-7252
Fax # 8838-7253
MAKATI - YAKAL BRANCH
173 Yakal St. near corner Ayala Ave. Ext.,
Makati City
Tel # 8373-6355; 8367-0086
Fax # 8373-6355
MALABON - CONCEPCION BRANCH
Gen. Luna corner Paez Streets,
Concepcion, Malabon
Tel # 8281-0102; 8281-0103; 8281-0104;
8281-0105
Fax # 8281-0106

C HI NA BANK I NG COR P O R AT I O N

131

CHINABANKMALABON - GOV. PASCUAL BRANCHCBC Building, Gov. Pascual Avenue,
Malabon City
Tel # 8352-1816; 8352-1817; 8961-2147
Fax # 8352-1822

MARIKINA - SSS VILLAGE BRANCH
Lilac St., Rancho Estate IV,
Concepcion Dos, Marikina City
Tel # 8948-5135; 8941-7709; 8997-3343
Fax # 8942-0048

NOVALICHES - GULOD BRANCH
858 Krystle Building, Quirino Highway,
Gulod, Novaliches, Quezon City
Tel # 8937-1133; 8937-1136
Fax # 8936-1037

MALABON - POTRERO BRANCHCBC Bldg., McArthur Highway, Potrero,
MalabonTel # 3448-0524; 3448-0525; 8361-8671;
8361-7056
Fax # 8361-7056

MASANGKAY BRANCH
959-961 G. Masangkay Street,
Binondo, Manila
Tel # 8244-1828; 8244-1835; 8244-1848;8244-1856; 8244-1859
Fax # 8244-1833

NOVALICHES - STA. MONICA BRANCH*)( 9%OGJ4XLULQR+LJKZD\FRUQHU
Dumalay St., Novaliches, Quezon City
Tel # 8288-3683; 8288-2302
Fax # 8288-3683

MALANDAY BRANCHCBC Bldg. McArthur Highway,
Malanday, Valenzuela City
Tel # 3432-9785; 7006-9787;7276-3201;
Fax # 8292-6956

MASANGKAY – MAYHALIGUE BRANCH
No. 1417-1419 G. Masangkay St.,
Sta. Cruz, Manila
Tel # 8255-0739; 8254-9974; 8254-9335
Fax # 8254-9974

MANDALUYONG - BONI AVE. BRANCH*)926%OGJ%RQL$YHQXHFRUQHUSan Rafael Street Mandaluyong City
Tel # 7746-6283; 7746-6285; 8534-2289
Fax # 8534-1968

MAYON BRANCH
480 Mayon St. Maharlika Sta. Mesa Heights,
Quezon City
Tel # 8731-9054; 8731-2766; 8741-2409
Fax# 8731-2766

MANDALUYONG - BONI SAN ROQUE
BRANCH#768 Bonifacio Ave. cor. San Roque St. Brgy.
Barangka Ilaya, Mandaluyong City
Tel # 8571-3861; 8571-3867
Fax # 8571-3867

MAYON – ROTONDA BRANCH*)2QH0D\RQ3ODFH0D\RQ6WUHHW
Brgy. Sta. Teresita, Quezon City
Tel # 8373-5534; 8281-8603
Fax# 8373-5534

MANDALUYONG - D. GUEVARA BRANCH*)/LEHUWDG3OD]D'RPLQJR*XHYDUD6W
Mandaluyong City
Tel # 8534-5529; 8477-6382
Fax # 8534-5528
MANDALUYONG - PIONEER BRANCH
UG-05 Globe Telecom Plaza Tower I,
Pioneer Street, Mandaluyong City
Tel # 7746-6949; 7746-6948
8635-4198; 8632-1399
Fax # 7746-6948
MANDALUYONG – THE PODIUM BRANCH)7KH3RGLXP$'%$YHQXH
Ortigas Center, Mandaluyong City
Tel # 8291-1253; 8280-0220
Fax # 8291-1253
MANILA – MACEDA BRANCH
Daguman Bldg., Maceda St.,
Sampaloc Manila
Tel # 8521-6644; 8521-6643
Fax # 8521-6644
MARIKINA - STA. ELENA BRANCH
250 J.P. Rizal Street, Sta. Elena, Marikina City
Tel # 8646-4281; 8646-4277
8646-4279
Fax # 8646-1807
MARIKINA - FAIRLANE BRANCH*)( /3DWULFLR%XLOGLQJ
No. 809 J.P. Rizal Ave.,
Concepcion Uno, Marikina City
Tel # 8997-0684; 8997-0897; 8998-1817;
7239-2143
Fax # 7239-2143
MARIKINA - GIL FERNANDO BRANCH
Block 9, Lot 14 Gil Fernando Ave.,
Marikina City
Tel # 8646-0780; 7358-2138
Fax # 8646-8032

132

MEDICAL CENTER PARAÑAQUE BRANCH*)0HGLFDO&HQWHU3DUD³DTXH
Dr. Arcadio Santos Ave., San Antonio,
Parañaque City
Tel# 8628-1610; 8635-0900
MINDANAO AVE. BRANCH
30 Mindanao Avenue, Brgy. Tandang Sora,
Quezon City
Tel # 8277-4768; 8277-4782
Fax # 8277-4768
MUNTINLUPA - PUTATAN BRANCH*)7HNQLNRV%OGJ1DWLRQDO+LJKZD\Brgy. Putatan, Muntinlupa City
Tel # 8511-0980; 8808-1817
Fax # 8808-1819
N. DOMINGO BRANCH*)7KH0DLQ3ODFH1R3LQDJODEDQDQcor. N. Domingo Sts., San Juan,
Metro Manila
Tel # 8470-2915; 8470-2916; 8470-2917
Fax # 8551-2267
NAVOTAS BRANCH
No. 500 M. Naval St. near corner Lacson St.
Brgy. North Bay Boulevard North (NBBN),
Navotas City
Tel # 8283-0752; 8283-0753; 8283-0754
Fax # 8283-0754
NEWPORT MALL BRANCH
Ground Floor, Newport Mall,
Newport City, Pasay City
Tel # 8245-1591 (temporary)
NOVALICHES - BAGBAG BRANCH
No. 658 Quirino Highway, Bagbag,
Novaliches, Quezon City
Tel # 8283-3885; 8275-3244
Fax # 8283-3885

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTNOVALICHES - SANGANDAAN BRANCHCBC Building, Quirino Highway corner
Tandang Sora Ave., Brgy. Sangandaan,
Novaliches, Quezon City
Tel # 8935-3049; 8935-3491; 3455-5661
Fax# 8935-2130
NOVALICHES - TALIPAPA BRANCH
528 Copengco Bldg., Quirino Highway,
Talipapa, Novaliches, Quezon City
Tel # 8936-2202; 8936-3311; 8936-7765;
8936-5508
Fax # 8936-2202
NOVALICHES – ZABARTE BRANCH*)&,%OGJ4XLULQR+LJKZD\corner Zabarte Road, Brgy. Kaligayahan,
Novaliches, Quezon City
Tel # 8461-7691; 8461-7694; 8461-7698
Fax # 8461-7691
NUEVA BRANCH
8QLW1RV *)$\VRQ%XLOGLQJ
Yuchengco St., Binondo, Manila
Tel # 8247-6374; 8247-6396; 8247-0493;
Fax # 8247-6396
ONGPIN BRANCH*)6H-R7RQJ%XLOGLQJ
808 Ongpin Street, Sta. Cruz, Manila
Tel # 8733-8962; 8733-8963; 8733-8964;
8733-8965; 8733-8966; 8735-5362
Fax # 8733-8964
OROQUIETA BRANCH
1225-1227, Oroquieta St., Sta. Cruz, Manila
Tel # 8521-6648; 8521-6650
Fax # 8521-6650
ORTIGAS - ADB AVE. BRANCHLGF City & Land Mega Plaza, ADB Ave. cor.
Garnet Rd. Ortigas Ctr., Pasig City
Tel # 8687-2457; 8687-2458; 8687-2226;
8687-3263
Fax # 8687-2457
ORTIGAS AVE. EXT. - RIVERSIDE BRANCH
Unit 2-3 Riverside Arcade Ortigas Avenue
Extension corner Riverside Drive,
Brgy. Sta. Lucia, Pasig City
Tel # 7748-1808; 7748-4426; 8655-7403;
8655-8350
Fax # 8655-8350
ORTIGAS CENTER BRANCH
Unit 105 Parc Chateau Condominium,
Garnet Street, Ortigas Center, Pasig City
Tel # 8633-7960; 8633-7970; 8633-7953;
8633-7954; 8634-0178
Fax # 8633-7971

ORTIGAS COMPLEX BRANCH*)3DGLOOD%XLOGLQJ)2UWLJDV-U5RDG
(formerly Emerald Avenue),
Ortigas Center, Pasig City
Tel # 8634-3469; 8631-2772
Fax # 8633-9039
ORTIGAS - JADE DRIVE BRANCH
Unit G-03, Antel Global Corporate Center,
Jade Drive, Ortigas Center, Pasig City
Tel # 8638-4489; 8638-4490
8638-4510; 8638-4540
Fax # 8638-4540
ORTIGAS - TEKTITE BRANCH
Unit EC-06B PSE Center (Tektite)
Ortigas Center, Pasig City
Tel # 8637-0231; 8637-0238
Fax # 8637-0231
PACO BRANCH
Gen. Luna corner Escoda Street,
Paco, Manila
Tel # 8526-6492; 8536-6630; 8536-6631;
8536-6672
Fax # 8536-6657
PACO – ANGEL LINAO BRANCH
Unit 1636 & 1638 Angel Linao St.
Paco, Manila
Tel # 8242-2849; 8242-3416
Fax # 8242-3416
PACO - OTIS BRANCH*)8QLRQ0RWRU&RUS%OGJ
1760 Dra. Paz Guazon St., Paco, Manila
Tel # 8561-6902; 8561-6981; 8564-2247
Fax # 8561-6981
PADRE FAURA BRANCH*)5HJDO6KRSSLQJ&HQWHU$0DELQL
cor. P. Faura Sts., Ermita, Manila
Tel # 8526-0586; 8527-3202; 8527-7865
Fax # 8527-3202
PADRE RADA BRANCH*)*RVLXSR%OGJ3DGUH5DGD
corner Elcano Sts., Tondo, Manila
Tel # 8277-1106; 8371-4300
Fax # 8277-1106PARAÑAQUE - BACLARAN BRANCH
Quirino Avenue cor. Aragon St., Baclaran,
Parañaque City
Tel # 8581-1057
Fax # 8663-0425
PARAÑAQUE - MOONWALK BRANCH
Milky Way St. cor. Armstrong Avenue,
Moonwalk, Parañaque City
Tel # 8846-9729; 8846-9771
Fax # 8846-9739
PARAÑAQUE – NAIA BRANCH
Ninoy Aquino Ave., Brgy. San Dionisio,Parañaque City
Tel # 8541-8857; 8541-8858
Fax # 8541-8857
PARAÑAQUE - SAN ANTONIO VALLEY
BRANCHSan Antonio Shopping Center,
San Antonio Road, Brgy. San Antonio Valley 1,
Parañaque City
Tel # 8816-2448; 8816-2451
Fax # 8816-2451

PARAÑAQUE - SUCAT BRANCH
No. 8260 (between AMA Computer School
and PLDT), Dr. A. Santos Avenue,
Brgy. San Isidro, Parañaque City
Tel # 8826-4072; 8820-8952; 8820-2044
8825-2501
Fax # 8825-9517
PASAY - LIBERTAD BRANCH
CBC-Building, 184 Libertad Street,
Antonio Arnaiz Ave., Pasay City
Tel # 8551-7159; 8834-8978; 8831-0306;
8831-0498
Fax # 8551-7160
PASAY - ROXAS BLVD. BRANCHGF Unit G-01 Antel Seaview Towers,
2626 Roxas Blvd., Pasay City
Tel # 8551-9067; 8551-9068; 8551-9069
Fax # 8551-1768
PASIG - A. MABINI BRANCH
A. Mabini Street, Brgy. Kapasigan, Pasig City
Tel # 8534-5178; 8634-4028
Fax # 8634-4028
PASIG – ESTANCIA BRANCHLGF Estancia (Expansion) Capitol Commons,
Meralco Ave., Pasig City
Tel # 8255-8032
Fax # 8293-6214
PASIG - C. RAYMUNDO BRANCH*)0LF0DU$SDUWPHQWV
No. 6353 C. Raymundo Avenue,
Brgy. Rosario, Pasig City
Tel # 8642-3652; 8628-3912; 8628-3922;
7576-4134
Fax # 7576- 4134

PASIG- SM SUPERCENTER BRANCH*)606XSHUFHQWHU3DVLJ)URQWHUD'ULYH
C-5, Ortigas, Pasig City
Tel # 8706-3207; 8706-3208; 8706-3209
Fax # 8706-3208
PASIG - VALLE VERDE BRANCH*)5HOLDQFH,7&HQWHU(5RGULJXH]-U$YH
Ugong, Pasig City
Tel # 8706-9242; 8706-9243
Fax# 8706-9243
PASO DE BLAS BRANCH(GMP Building) #63 Paso de Blas,
Valenzuela City
7HO 
Fax # 7149-2354
PASONG TAMO BAGTIKAN BRANCH*)7UDQV3KLO+RXVH&KLQR5RFHV$YH
cor. Bagtikan St., Makati City
Tel # 8403-4820; 8403-4821; 8403-4822;
7738-7591
Fax # 8403-4821
PASONG TAMO - CITYLAND BRANCH
Units UG30-UG32 Cityland Pasong Tamo
Tower, 2210 Pasong Tamo St., Makati City
Tel # 8817-9337; 8817-9347; 8817-9351;
8817-9360; 8817-9382
Fax # 8817-9351
PASONG TAMO – LA FUERZA BRANCH
La Fuerza Plaza 1, Chino Roces Ave.,
Makati City
Tel # 8541-8850; 8541-8851
Fax # 8541-8851

PASIG - CARUNCHO BRANCH
No. 7 Caruncho Ave., Pasig City
Tel # 8639-5482; 8559-6183

PATEROS BRANCH*)$GHOD%XLOGLQJ0$OPHGD6W
Brgy. San Roque, Pateros
Tel # 8531-6929; 8531-6810; 8654-3079
Fax # 8654-3079

PASIG – DELA PAZ BRANCH
Amang Rodriguez Avenue,
Brgy. Dela Paz, Pasig City
Tel # 8637-7876
Fax # 8637-7874

PHILAM BRANCH#8 East Lawin Drive, Philam Homes, QC
Tel # 8927-9841; 8924-2872; 8929-5734;
8929-3115
Fax # 8929-3115

PASIG - MERCEDES BRANCH
Commercial Motors Corp.
Compound Mercedes Ave., Pasig City
Tel # 8628-0201; 8628-0209; 8628-0197
Fax # 8628-0211

PROJECT 8 – SHORTHORN BRANCH
Shorthorn Street, Project 8, Quezon City
Tel # 8373-3363; 8373-3369
Fax # 8373-3363

PASIG – ROSARIO BRANCH
1864 Ortigas Ave. Ext., Rosario, Pasig City
Tel # 8254-4859; 8244-8839
Fax # 8254-4859
PASIG - SAN JOAQUIN BRANCH
No. 43 M. Concepcion Ave.,
San Joaquin, Pasig City
Tel # 8997-2815; 8997-2816; 8997-2817
Fax# 8997-2815
PASIG-SANTOLAN BRANCH*))HOPDUF%XVLQHVV&HQWHU
Amang Rodriguez Avenue,
Santolan, Pasig City
Tel # 8646-0635; 8682-3474; 8682-3514;
8681-4575
Fax# 8646-0514

PUREZA BRANCH*)6ROLFDUHO%XLOGLQJ5DPRQ0DJVD\VD\Blvd. near corner Pureza St.,
Sta. Mesa, Manila
Tel # 8241-3313; 8241-3314
Fax # 8241-3314
QUEZON AVE. BRANCH
No. 18 GD Bldg., Quezon Ave.
cor. D. Tuazon St., Quezon City
Tel # 8712-3676; 8712-0424; 8740-7779;
8740-7780; 8712-1105; 3416-8891;
Fax # 8712-3006
QUEZON AVE.- SCT. CHUATOCO BRANCH
Estuar Building, No.880 Quezon Ave.,
Brgy. Paligsahan, Quezon City
Tel # 8351-0563; 8351-0567
Fax # 8351-0563

C HI NA BANK I NG COR P O R AT I O N

133

CHINABANKQUIAPO BRANCH
216-220 Villalobos St., Quiapo, Manila
Tel # 8733-2052; 8733-2059; 8733-2061;
8733-6282; 8733-6286
Fax # 8733-6282
8733-2061 (temporary fax)
REGALADO AVE. BRANCHCBC Building, Regalado Ave.,
North Fairview, Quezon City
Tel # 8921-5678; 8921-5359
Fax # 8921-5359
REGALADO AVE. –WEST FAIRVIEW BRANCHCBC Building, Regalado Ave.
corner Bulova St., Quezon City
Tel # 8936-2554; 8936-2556
Fax # 8936-2554

SAN ANTONIO VILLAGE KAMAGONG BRANCH
Kamagong near corner St. Paul Streets,
San Antonio Village, Makati City
Tel # 8777-4950; 8777-4951
Fax # 8777-4951
SAN ANTONIO VILLAGE P. OCAMPO BRANCH
1405 P. Ocampo Sr. Street cor. Dungon St.,San Antonio Village, Makati City
Tel # 8869-5648; 8869-5649
Fax # 8869-5651

SM CITY BICUTAN BRANCH
LGF, Bldg. B, SM City Bicutan Doña Soledad
Ave. cor. West Service Rd., Parañaque City
Tel # 8821-0600; 8821-0700; 8777-9347
Fax # 8821-0500
SM CITY BF PARAÑAQUE BRANCH*)60&LW\%)3DUD³DTXH
Dr. A. Santos Ave. corner President’s Avenue,Parañaque City
Tel # 8553-3067;8825-2990;
8825-3095;8825-3201
Fax # 8825-1062
SM CITY GRAND CENTRAL BRANCHLGF SM City Grand Central, Rizal Ave Ext.
Corner Bustamante Street, Kalookan City
Tel # 8288-7360; 8288-7380

RIZAL- ANGONO BRANCH
Lot 3 Blk. 4 M.L Quezon Ave.
Richmond Subd. Angono, Rizal
Tel # 8633-5198; 8633-7513
Fax # 8633-7513

SAN JUAN BRANCH
17 (new) F. Blumentritt St., San Juan,
Metro Manila
Tel # 8724-8263; 8726-4826; 8723-7333;
7744-5616; 7744-5617; 7744-5618
Fax # 8723-4998

SM CITY MARIKINA BRANCH*)60&LW\0DULNLQD0DUFRV+LJKZD\Brgy. Calumpang, Marikina City
Tel # 8477-1845; 8477-1846; 8477-1847;
7799-6105
Fax # 8477-1847

RIZAL- SAN MATEO BRANCH#63 Gen. Luna corner Simon St.,
Banaba, San Mateo, Rizal
Tel # 8650-2230
Fax # 8650-1837

SAN JUAN - J. ABAD SANTOS BRANCH
Unit 3 Citiplace Bldg., 8001 Jose Abad
Santos Street, Little Baguio, San Juan,
Metro Manila
Tel # 8470-8292; 8656-8329
Fax # 8656-8329

SM CITY SAN LAZARO BRANCHUGF (Units 164-166) SM City San Lazaro,
Felix Huertas Street corner A.H. Lacson
Extension, Sta. Cruz, Manila
Tel # 8742-1572; 8742-2330; 8493-7115
Fax # 8732-7935

ROCKWELL - ORTIGAS BRANCH*)7RZHU5RFNZHOO%XVLQHVV&HQWHU
Ortigas Avenue, Pasig City
Tel # 8470-4704; 8470-2984
Fax # 8470-2984

SCT. BORROMEO BRANCH*)7KH)RUXP%XLOGLQJ$
Sct. Borromeo St., Diliman, Quezon City
Tel # 8426-1431; 8426-1340
Fax # 8426-1431

ROOSEVELT AVE. BRANCHCBC Bldg., #293 Roosevelt Ave.,
San Francisco Del Monte, Quezon City
Tel # 8371-5133; 8371-5134; 8371-5135;
8371-2766; 3410-2160; 3410-1957
Fax # 8371-2765

SHAW – GOMEZVILLE BRANCH
Gomezville Street cor. Shaw Blvd.,
Mandaluyong City
Tel # 8363-3522; 8292-8918; 8292-1182
Fax # 8363-3522

SM CITY TAYTAY BRANCH
Unit 147 Bldg. B, SM City Taytay,
Manila East Road, Brgy. Dolores, Taytay, Rizal
Tel # 8286-5844; 8286-5979;
8661-2276; 8661-2277
Fax # 8661-2235

ROOSEVELT AVE. - FRISCO BRANCH*)1RULWD%OGJ+)UDQFLVFR6WFRUQHU
Roosevelt Ave. Brgy. Paraiso, Quezon City
Tel # 8709-7552; 8921-0866
Fax # 8921-0866
SALCEDO VILLAGE - L.P. LEVISTE BRANCH
8QLW%*)7KH$WKHQDHXP6DQ$JXVWLQŊLP Leviste St., Salcedo Village, Makati City
Tel # 8869-3128; 8869-3132; 8869-3134
Fax # 8869-3132
SALCEDO VILLAGE TORDESILLAS BRANCH*)3ULQFH7RZHU&RQGRPLQLXP
14 Tordesillas St., Salcedo Village,
Makati City
Tel # 8813-4901; 8813-4932; 8813-4933;
8813-4944; 8813-4952
Fax # 8813-4933
SALCEDO VILLAGE - VALERO BRANCH*)9DOHUR7RZHU9DOHUR6WUHHW
Salcedo Village, Makati City
Tel # 8892-7768; 8892-7769; 8812-9207
8893-8188; 8893-8196
Fax # 8892-7769

134

SALES - RAON BRANCH
611 Sales St., Quiapo, Manila
Tel # 8734-5806; 8734-7427; 8734-6959
Fax # 8734-5806

SHAW - HAIG BRANCH*))LUVWRI6KDZ%OGJ6KDZ%OYG
corner Haig St., Mandaluyong City
Tel # 8534-1073; 8273-4585; 8273-4633
Fax # 8273-4633
SHAW - PASIG BRANCH*)5&&&HQWHU1R6KDZ%RXOHYDUG
Pasig City
Tel # 8634-5018; 8634-5019; 8634-3343;
8634-3344; 8634-3340; 7747-7812
Fax # 8634-3344
SHAW - SUMMIT ONE BRANCH
8QLW6XPPLW2QH2IƓFH7RZHU
530 Shaw Boulevard Mandaluyong City
Tel # 8531-3970; 8531-5736; 8531-4058
8531-1304; 8533-8723; 8533-4948
Fax # 8531-9469
SM AURA PREMIER BRANCH/*60$XUD3UHPLHU0F.LQOH\3DUNZD\Fort Bonifacio Global City, Taguig City
Tel # 8808-9727; 8808-9701
Fax # 8808-9701

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTSM CITY FAIRVIEW BRANCH
LGF, SM City Fairview,
Quirino Avenue corner Regalado Avenue
Fairview, Quezon City
Tel # 3417-2878; 8939-3105
Fax # 3418-8228
SM MALL OF ASIA BRANCH)0DLQ0DOO%XLOGLQJ600DOORI$VLDBay Blvd., Pasay City
Tel # 8556-0103; 7625-2246; 8556-0100
Fax # 8556-0099
SM MEGAMALL BRANCHLGF Building A, SM Megamall,E. delos Santos Avenue corner J. Vargas St.,
Mandaluyong City
Tel # 8633-1611; 8633-1612; 8633-1789;
8638-7213; 8638-7214; 8638-72115
Fax # 8633-4971; 8633-1788
SM CITY MASINAG BRANCH
SM City Masinag, Marcos Highway,
Brgy. Mayamot, Antipolo City
Tel # 8655-8764; 8655-8771
Fax # 8655-9124
SM CITY NORTH EDSA BRANCH
Cyberzone Carpark Bldg., SM City North
Avenue corner EDSA, Quezon City
Tel # 3456-6633; 3454-8108; 3454-8121;
8925-4273
Fax # 8927-2234

SM NORTH TOWERS BRANCH
SM City North EDSA North Towers,
SM City North EDSA Complex, Quezon City
Tel # 8241-2172; 8251-5122
Fax # 8241-2172

TAFT AVE. - NAKPIL BRANCHG Square Taft Ave. corner Nakpil St.,
Malate, Manila
Tel # 8681-2830; 8631-9745
Fax# 8681-2830

EDSA - PHILAM BRANCH
917 EDSA, Brgy. Philam, Quezon City
Tel # 8374-2345; 8374-2362;
8287-3106
Fax # 8287-3106

TAFT AVE. - QUIRINO BRANCH
2178 Taft Avenue near corner
Quirino Avenue, Malate, Manila
Tel # 8521-7825; 8527-3285; 8527-6747
Fax # 8527-3285

SM SOUTHMALL BRANCHUGF SM Southmall Alabang-Zapote Road
Talon 1, Almanza Las Piñas City
Tel# 8806-6116; 8806-6119; 8806-3536;
8806-3547
Fax# 8806-3548

TANDANG SORA - VISAYAS AVE. BRANCH#250 Tandang Sora Ave., Quezon City
Tel # 8426-3818; 8426-3541
Fax # 8426-3541
TAYTAY- SAN JUAN BRANCH
Velasquez St., Sitio Bangiad,
Brgy. San Juan, Taytay, Rizal
Tel # (028) 8811-0309; (028) 8811-0312

SOLEMARE BRANCH
G-11 Solemare Parksuites,
5A Bradco Avenue, Aseana Business Park,
Parañaque City
Tel # 8366-3237; 8366-3219; 8366-3199
Fax # 8366-3199
SOLER - 168 BRANCH*)5 6%OGJ6ROHU6W0DQLOD
Tel # 8242-1041; 8242-1674; 8242-1685
Fax # 8242-1041
SOLER - ARRANQUE BRANCH#715 T. Alonzo St. near corner
CM Recto Avenue, Sta. Cruz, Manila
Tel # 8983-9496; 8983-9497
Fax # 8983-9497
SOUTH TRIANGLE BRANCH*)6XQVKLQH%OYG3OD]D
Quezon Ave. cor. Sct. Santiago andPanay Ave., Bgry. South Triangle,
Quezon City
Tel # 8277-7947; 8277-7948
Fax # 8277-7948
STA. MESA BRANCH
1-B G. Araneta Avenue,
Brgy.Doña Imelda, Quezon City
Tel # 8516-0764; 8516-0765; 8516-0766
Fax# 8516-0764
STO. CRISTO BRANCH
622-39 Sto. Cristo St. Binondo, Manila
Tel # 8242-4673; 8242-5361; 8241-1243
8242-5449; 8242-3670; 8242-4668
Fax # 8242-4672; 8242-4761
STO. CRISTO - C.M. RECTO BRANCH
858 Sto. Cristo Street, Manila
Tel # 8562-9651; 8562-9652; 8254-7227
Fax # 8562-9652
STO. DOMINGO AVE. BRANCH
Sto. Domingo Ave., Quezon City
Tel # 8251-6005; 8251-5852
Fax # 8251-5852
T. ALONZO BRANCH
Abeleda Business Center, 908 T. Alonzo
corner Espeleta Streets, Sta. Cruz, Manila
Tel # 8733-9581; 8733-9582; 8734-3231;
8734-3232; 8734-3233
Fax # 8733-9582

TAYTAY – ORTIGAS EXENSION BRANCH
Ortigas Ave. Ext., Taytay, Rizal
Tel # 8727-1667
Fax # 8727-5873
TIMOG AVE. BRANCH*)3ULQFH-XQ&RQGRPLQLXP
42 Timog Ave., Q.C.
Tel # 8371-4523; 8371-4524; 8371-4522;
8371-4506
Fax # 8371-4503
THE MEDICAL CITY BRANCH)0HGLFDO$UWV%XLOGLQJ7KH0HGLFDO&LW\
Ortigas Ave., Pasig City
Tel # 8372-7701; 8372-7716
Fax # 8372-7701
TRINOMA BRANCH
Unit P002, Level P1,
Triangle North of Manila,
North Avenue corner EDSA,
Quezon City
Tel # 7901-5570; 7901-5571; 7901-5572;
7901-5573
Fax # 7901-5573
TOMAS MAPUA - LAGUNA BRANCHCBC Building, Tomas Mapua St.
Sta. Cruz, Manila
Tel # 8289-7923
Fax # 8711-9849
TOMAS MORATO – E. RODRIGUEZ
BRANCH
1427 Tomas Morato Ave., Quezon City
Tel # 8470-3037; 8477-1472
Fax # 8470-3037
TOMAS MORATO EXTENSION BRANCHQY Bldg. Tomas Morato Ave., Quezon City
Tel # 8373-4960; 8373-4961
Fax # 8373-4961
999 MALL BRANCH
Unit 3D-5; 3D-7 999 Shopping Mall Bldg. 2
Recto-Soler Sts. Binondo, Manila
Tel # 8523-1216; 8523-1217; 8523-1218;
8523-1219
Fax # 8523-1215

TUTUBAN PRIME BLOCK BRANCHRivera Shophouse, Podium Area,
Tutuban Center Prime Block, C.M. Recto Ave.
corner Rivera Street, Manila
Tel # 8255-1414; 8255-1415; 8255-5441
Fax # 8255-5441
UP TECHNO HUB BRANCH
UP AyalaLand Techno Hub,Commonwealth Ave., Quezon City
Tel # 8441-1331; 8441-1332; 8441-1334;
7738-4800
Fax # 8441-1332
UP VILLAGE- MAGINHAWA BRANCHLTR Bldg, No. 46 Maginhawa St.,UP Village, Quezon City
Tel # 8373-3349; 8373-3354
Fax # 8373-3349
V.LUNA BRANCH*)$**&7%OGJ1R9/XQDFRU
Matapat Sts., Brgy. Pinyahan, Quezon City
Tel # 8772-8992; 8772-8564; 8785-6431
Fax # 8772-8564
VALENZUELA BRANCH
CBC-Bldg., Mc Arthur Highway cor.
V. Cordero St., Marulas, Valenzuela City
Tel # 8293-8920; 8293-6160
8293-5088; 8293-5089; 8293-5090;
3445-0657
Fax # 8293-5091
VALENZUELA - GEN. LUIS BRANCHAGT Building, 425 Gen. Luis Street,
Paso de Blas, Valenzuela City
Tel # 3443-6160; 3443-6161; 8983-3861;
8983-3862
Fax # 3443-6161
VALENZUELA - MALINTA BRANCH
MacArthur Highway, Brgy. Malinta,
Valenzuela City
Tel # 8282-2160; 8282-2013
Fax # 8282-2013
VISAYAS AVE. BRANCH
CBC-Building, Visayas Avenue corner
Congressional Ave. Ext., Quezon City
Tel # 3454-0189; 3455-4334; 3455-4335
8925-2173
Fax # 8925-2155
WEST AVE. BRANCH
82 West Avenue, Quezon City
Tel # 8924-3131; 8924-3143; 8924-6363;
8920-6258; 8928-3270; 3411-6010;
3411-6011
Fax # 8924-6364
XAVIERVILLE BRANCH
;DYLHUYLOOH$YH/R\ROD+HLJKWV
Quezon City
Tel # 3433-8696; 8929-1265; 8927-9826
Fax # 8929-3343
ZOBEL ROXAS BRANCH
1247 Zobel Roxas Ave. corner
Taal Street, Malate, Manila
Tel # 8254-4644; 8252-0831
Fax # 8254-4644

C HI NA BANK I NG COR P O R AT I O N

135

CHINABANKLUZONALBAY BRANCH
Rizal St. cor. Gov. Reynold Street,
Old Albay District, Legazpi City
Area Code: 052
Tel# 742-0893; 742-0894
Fax# 742-0894
ANGELES CITY BRANCH
CBC-Building, 949 Henson St., Angeles City
Area Code: 045
Tel # 887-1549; 887-1550; 888-6773; 6258660; 625-8661
Fax # 887-1550; 625-8661
ANGELES CITY - BALIBAGO BRANCH
Diamond Square, Service Road McArthur
Highway cor. Charlotte St. Balibago,
Angeles City, Pampanga
Area Code: (045)
Tel # 892-5136; 892-5144
Fax # 892-5136
ANGELES CITY MARQUEE MALL BRANCH*)0DUTXHH0DOO$QJHOHV&LW\3DPSDQJD
Area Code: (045)
Tel # 304-1173; 305-1167
ANGELES - MCARTHUR HIGHWAY
BRANCHCBC Bldg. San Pablo St. corner
Mc Arthur Highway, Angeles City
Area Code: (045)
Tel # 323-5793; 887-6028; 625-9362
Fax # 887-6029
ANGELES - STO. ROSARIO BRANCHAngeles Business Center Bldg.,
Teresa Avenue, Nepo Mart Complex,
Angeles City, Pampanga
Area Code: (045)
Tel # 888-5175; 322-9596
Fax # 888-5175
APALIT BRANCHCBC Building, McArthur Highway,
San Vicente, Apalit, Pampanga
Area Code: (045)
Tel # 652-1131
Fax # 302-9560
BAGUIO CITY BRANCH*)-XQLSHU%OGJ$%RQLIDFLR5G
Baguio City
Area Code: (074)
Tel # 442-9581; 443-8659; 442-9663
Fax # 442- 9581
BAGUIO CITY - KISAD BRANCH*)3DODGLQ+RWHO1R.LVDG5RDG
corner Cariño Street, Baguio City
Area Code: (074)
Tel # 424-4837; 424-4838
Fax # 424-4838
BALANGA CITY BRANCH
Servicio Filipino Bldg., Paterno St.,
Poblacion, Balanga City, Bataan
Area Code: (047)
Tel # 237-9388; 237-9389; 791-1779
Fax # 791-1779

136

BALER BRANCH
Provincial Road, Brgy. Suklayin, Baler, Aurora
Area Code: (042)
Tel # 724-0026;
8703-3331 (manila line)
Fax # 724-0026
BALIWAG BRANCH
Km. 51, Doña Remedios Trinidad (DRT)Highway, Baliwag, Bulacan
Area Code: (044)
Tel # 766-1066; 766-5257; 673-5338
Fax # 766-5257
BATAAN – DINALUPIHAN BRANCHGNI Building, San Ramon Highway corner
Doña Rosa Street and Mabini Ext.,
Dinalupihan, Bataan
Area Code: (047)
Tel # 636-1451; 636-1452
Fax # 636-1451
BATANGAS CITY BRANCH
P. Burgos Street, Batangas City
Area Code: (043)
Tel # 723-0953;
8520-6118 (Manila Line)Fax # 402-9157;
8520-6118 (Manila Line)BATANGAS – BALAYAN BRANCHCBC Building, Barrio Ermita,
Balayan, Batangas
Area Code: (043)
Tel # 741-5028; 741-5180
Fax # 741-5028
BATANGAS - BAUAN BRANCH
62 Kapitan Ponso St., Bauan, Batangas
Area Code: (043)
Tel # 702-4481; 702-5383
Fax # 702-4481
BATANGAS - LEMERY BRANCH
Miranda Building, Ilustre Avenue,
Lemery, Batangas
Area Code: (043)
Tel # 409-3467; 984-0206
Fax # 409-3467
BATANGAS CITY - KUMINTANG ILAYABRANCHCBC Building, Brgy. Kumintang Ilaya,
Batangas City, Batangas
Area Code: (043)
Tel # 702-6823; 702-6826
Fax # 702-6823
BATANGAS - ROSARIO BRANCH
Dr. Gualberto Ave., Brgy. Namunga,
Rosario, Batangas
Area Code: (043)
Tel # 312-3748; 312-3776
Fax # 312-3748
BATANGAS - SAN JUAN BRANCH
Rizal St. near corner Gen. Luna St.,
Poblacion, San Juan, Batangas
Area Code: (043)
Tel # 740-0280; 740-0282
Fax # 740-0280

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTBATANGAS - TANAUAN BRANCH
J.P. Laurel Highway, Tanauan City, Batangas
Area Code: (043)
Tel # 702-8956; 702-8957
Fax # 702-8956
BULACAN- BALAGTAS BRANCH
Mac Arthur Highway, Brgy. San Juan,
Balagtas, Bulacan
Area Code: (044)
Tel # 769-4376; 769-0359
Fax # 769-4376
BULACAN – GUIGUINTO BRANCHCBC Building, Cagayan Valley Road,
Brgy. Sta. Rita, Guiguinto, Bulacan
Area Code: (044)
Tel # 764-0879; 764-0886
Fax # 764-0879
BULACAN - PLARIDEL BRANCHCBC Building, Cagayan Valley Road,
Plaridel, Bulacan
Area Code: (044)
Tel # 931-2332; 325-0069
Fax # 931-2293
BULACAN - STA. MARIA BRANCH
J.P Rizal corner C. de Guzman St.,
Poblacion, Sta. Maria
Area Code: (044)
Tel # 288-2006; 815-2951; 913-0334
Fax # 288-2006
CABANATUAN CITY BRANCH
Paco Roman St., Brgy. Dimasalang,
Cabanatuan City
Area Code: (044)
Tel # 600-4265; 463-0935; 463-0936
Fax # 463-0936
CABANATUAN - MAHARLIKA BRANCH
CBC-Building, Maharlika Highway,
Cabanatuan City
Area Code: (044)
Tel # 463-8586; 463-8587; 463-7964;
600-3590; 940-2395
Fax # 463-8587
CALAPAN CITY BRANCH
J.P. Rizal St., San Vicente, Calapan City,
Oriental Mindoro
Area Code: (043)
Tel # 288-8978; 288-8508; 441-0382
Fax # 441-0382
CAMALANIUGAN BRANCHCBC Building, National Highway,
Camalaniugan, Cagayan
Area Code: (078)
Tel # 377-2836; 377-2837
Fax# 377-2837
CANDON CITY BRANCHCBC Building, National Road, Poblacion,
Candon City, Ilocos Sur
Area Code: (077)
Tel # 674-0574; 674-0554
Fax # 674-0574

CARMONA BRANCHCBC Building, Paseo de Carmona Brgy.
Maduya, Carmona, Cavite
Area Code: (046)
Tel # 430-1969; 430-1277; 430-3568;
8475-3941 (Manila line)
Fax # 430-1277
CAUAYAN CITY BRANCH*)3ULQFH&KULVWRSKHU%OGJ0DKDUOLND
Highway, Cauayan City, Dist. 2, Isabela
Area Code: (078)
Tel # 652-1849; 652-0061
Fax # 652-1849
CAVITE-DASMARIÑAS BRANCH*)&%&%OGJ*HQ($JXLQDOGR+LJKZD\Dasmariñas, Cavite
Area Code: (046)
Tel # 416-5036; 416-5039; 416-5040;
8584-40-83 (Manila line)
Fax # 416-5036
CAVITE-GEN. TRIAS BRANCH
Lot 12 Brookeside Lane 5 Arnaldo Highway,
Brgy. San Francisco, Gen. Trias City, Cavite
Area Code: (046)
Tel # 482-8993; 482-8995
Fax # 482-8995
CAVITE-IMUS BRANCH*)&%&%OGJ1XHQR$YHQXH7DQ]DQJ
Luma, Imus, Cavite
Area Code: (046)
Tel # 970-8726; 970-8764; 471-2637;
471-7094
Fax # 471-2637
CAVITE- MOLINO BRANCH
Patio Jacinto Bldg., Molino National Road,
Molino 3, Bacoor, Cavite
Area Code: (046)
Tel # 431-0632; 484-6295
Fax # 431-0901
CAVITE-ROSARIO BRANCH*)&%&%XLOGLQJ*HQ7ULDV'ULYH
Rosario, Cavite
Area Code: (046)
Tel # 437-0057; 437-0058; 437-0059
Fax # 437-0058
CAVITE- SILANG BRANCHCBC Building, J.P Rizal St. Poblacion,
Silang, Cavite
Area Code: (046)
Tel # 413-5095; 413-4826; 413-5500;
413-5417
Fax # 413-5095
CLARK FREEPORT ZONE BRANCH
Stotsenberg Lifestyle Center, Quirino Sr.
cor. N. Aquino Streets, Clark Freeport Zone,
Angeles City, Pampanga
Area Code: (045)
Tel # 499-8060; 499-8062; 499-8063
Fax # 499-8063
DAET BRANCH
Vinzons Avenue, 440-0066, Camarines Norte
Area Code: (054)
Tel # 440-0066; 440-0067
Fax # 440-0066

DAGUPAN - PEREZ BRANCH
Siapno Building, Perez Boulevard,
Dagupan City
Area Code: (075)
Tel # 522-2562; 522-2563; 522-2564;
Fax # 522-8308

LA UNION- AGOO BRANCHCBC Building, National Highway,
Brgy. San Nicolas Sur, Agoo, La Union
Area Code: (072)
Tel # 682-0350; 682-0391
Fax # 682-0391

DAGUPAN- M.H. DEL PILAR BRANCH
Carried Realty Bldg., No. 28 M.H. del Pilar
Street Dagupan City
Area Code: (075)
Tel # 523-5606; 522-8929 632-0430;
632-0583
Fax # 523-5606

LA UNION- SAN FERNANDO BRANCH
Roger Pua Phee Building, National Highway,
Brgy. 3, San Fernando, La Union
Area Code: (072)
Tel # 607-8931; 607-8932; 607-8933;
607-8934
Fax # 607-8934

DOLORES BRANCHCBC Bldg., McArthur Highway, Dolores,
City of San Fernando, Pampanga
Area Code: (045)
Tel # 963-3413; 963-3414; 963-3415
Fax # 963-1014

LAGUNA – BIÑAN BRANCH*)5DMD&RUGHOOH%OGJ1DWLRQDO+LJKZD\Brgy. San Vicente, Biñan, Laguna
Area Code: (049)
Tel # 511-3196;
8245-0440 (Manila Line)Fax # 511-3196

ILOCOS NORTE- SAN NICOLAS BRANCHNational Highway, Brgy. 2 San Baltazar,
San Nicolas, Ilocos Norte
Area Code: (077)
Tel # 600-0994; 600-0995
Fax # 600-0995
IRIGA CITY BRANCH
Highway 1, JP Rizal St., San Roque,Iriga City, Camarines Sur
Area Code: (054)
Tel # 299-7000; 456-1498
Fax # 456-1498
ISABELA-ILAGAN BRANCHJHU Golden Grains Center Bldg.,
Maharlika Highway, Brgy. Baligatan,
Ilagan, Isabela
Area Code: (078)
Tel # 642-0742
Fax # 323-0179

LAGUNA - CABUYAO BRANCH*)&HQWUR0DOO&DEX\DR&LW\/DJXQD
Area Code: (049)
Tel # 544-2287; 544-2289
Fax # 544-2287
LAGUNA - CALAMBA BRANCH
CBC-Building, National Highway,
Crossing, Calamba, Laguna
Area Code: (049)
Tel # 545-7134; 545-7135; 545-7136;
545-7137; 545-7138
Fax # 545-7138
LAGUNA – LOS BAÑOS BRANCHNational Road, San Antonio,
Los Baños, Laguna
Area Code: (049)
Tel # 557-3223; 557-3224
Fax # 557-3223

ISABELA- ROXAS BRANCHNational Road, Brgy. Bantug , Roxas, Isabela
Area Code: (078)
Tel # 376-0422; 376-0434
Fax # 642-0022

LAGUNA – SAN PEDRO BRANCH
No. 365 Brgy. Nueva, National Highway,
San Pedro City, Laguna
Tel # 8816-3864; 8816-4862
Fax # 8816-4862

GAPAN BRANCH*):DOWHUPDUW&HQWHU*DSDQ
Maharlika Highway, Brgy. Bayanihan,
Gapan, Nueva Ecija
Area Code: (044)
Tel # 486-0217; 486-0434; 486-0695
Fax # 486-0434

LAGUNA- STA. CRUZ BRANCHCBC Building, P. Guevarra St., Poblacion IV,
Sta. Cruz, Laguna
Area Code: (049)
Tel # 501-4977; 501-4107; 501-4085
Fax # 501-4107

GUAGUA BRANCH
Yabut Building, Plaza Burgos,
Guagua, Pampanga
Area Code: (045)
Tel # 458-1043; 458-1045; 458-1046
Fax # 458-1043

LAOAG CITY BRANCH
Liberato Abadilla Street,
Brgy 17 San Francisco Laoag City
Area Code: (077)
Tel # 772-1024; 772-1027; 771-4688;
771-4417
Fax # 772-1035

LA TRINIDAD BRANCH*)6-9%XODVDR%XLOGLQJ.P
La Trinidad, Benguet
Area Code: (074)
Tel # 422-2065; 422-2590
Fax # 422-2065

LEGAZPI CITY BRANCH*)(PPD&KDQ%OGJ),PSHULDO6W
Legazpi City
Area Code: (052)
Tel # 480-6048; 480-6519; 214-3077
Fax # 8429-1813 (Manila line)

C HI NA BANK I NG COR P O R AT I O N

137

CHINABANKLIPA CITY - TAMBO BRANCH
Tambo, Lipa City, Batangas
Area Code: (043)
Tel # 757-6331; 757-6332
Fax # 757-6331
LUCENA CITY BRANCH
233 Quezon Avenue, Lucena City
Area Code: (042)
Tel # 373-2317; 373-3872; 373-3880;
373-3887; 660-7861
Fax # 373-3879
MABALACAT-DAU BRANCHOne North Mall, #1 McArthur Highway,
Dau, Mabalacat City, Pampanga
Area Code: (045)
Tel # 892-4969; 892-6040
Fax # 892-6040
MALOLOS CITY BRANCH*)*UDFHODQG0DOO%68*URXQGVMcArthur Highway, Guinhawa,
Malolos City, Bulacan
Area Code: (044)
Tel # 794-5840; 662-2013
Fax # 794-5840
MARILAO BRANCH*)60&LW\0DULODR.P%UJ\,ED\R
Marilao, Bulacan
Area Code: (044)
Tel # 815-8956; 761-3802
Fax # 815-8956
MARIVELES – FAB BRANCH
Tamayo’s Building, Avenue of the Philippines
Brgy. Malaya, Freeport Area of Bataan (FAB),
Mariveles, Bataan
Area Code: (047)
Tel # 633-9569; 633-9699
Fax # 633-9569
MASBATE BRANCH
Espinosa Bldg., Zurbito St.,
Masbate City, Masbate
Area Code: (056)
Tel # 333-2363; 333-2365
Fax # 333-2365
MEYCAUAYAN BRANCHCBC Building, Malhacan Road,
Meycauayan, Bulacan
Area Code: (044)
Tel # 815-6889; 815-6961; 815-6958
Fax # 815-6961
NAGA CITY BRANCH
Centro- Peñafrancia Street, Naga City
Area Code: (054)
Tel # 472-1358; 473-7920; 873-0468
Fax # 472-1358
NUEVA ECIJA- STA. ROSA BRANCHCBC Building, Maharlika Highway,
Poblacion, Sta. Rosa, Nueva Ecija
Area Code: (044)
Tel # 333-6215; 940-1407
Fax # 333-6215
OCC. MINDORO- SAN JOSE BRANCH
Liboro corner Rizal Street, San Jose,
Occidental Mindoro
Area Code: (043)
Tel # 491-0095; 491-0096
Fax # 491-0095

138

OLONGAPO – DOWNTOWN BRANCH
No. 2 corner 20th St., East Bajac-Bajac,
Olongapo City
Area Code: (047)
Tel # 610-9826
Fax # 610-9826

SAN PABLO CITY BRANCH
M. Paulino Street, San Pablo City
Area Code: (049)
Tel # 562-5481; 562-5482; 562-5483
562-5484
Fax # 562-5485

PANGASINAN-ALAMINOS CITY BRANCH
Marcos Avenue, Brgy. Palamis, Alaminos
City, Pangasinan
Area Code: (075)
Tel # 551-3859; 654-0286
Fax# 654-0296

SANTIAGO CITY BRANCH
Navarro Bldg., Maharlika Highway nearcorner Bayaua St., Santiago City, Isabela
Area Code: (078)
Tel # 682-7024; 682-7025; 682-7026
Fax # 682-7026

PANGASINAN- BAYAMBANG BRANCHCBC Building, No. 91, Poblacion Sur,
Bayambang, Pangasinan
Area Code: (075)
Tel # 632-5776; 632-5775
Fax # 632-5776

SM CITY BACOOR BRANCHLGF SM City Bacoor
Tirona Highway corner Aguinaldo Highway
Bacoor, Cavite
Area Code: (046)
Tel # 417-0572; 417-0746; 417-0623;
417-0645;
Fax # 417-0583

PANGASINAN- ROSALES BRANCHCBC Building, Calle Dewey, Rosales,
Pangasinan
Area Code: (075)
Tel # 633-3852; 633-3853
Fax # 633-3852
PANGASINAN-URDANETA BRANCH
EF Square Bldg., Mc Arthur Highway,
Poblacion Urdaneta City, Pangasinan
Area Code: (075)
Tel # 632-2637; 632-0541; 656-2022;
656-2618
Fax # 656-2618
PASEO DE STA. ROSA BRANCH
Unit 3, Paseo 5, Paseo de Sta. Rosa,
Sta. Rosa City, Laguna
Area Code: (049)
Tel # 837-1831; 502-3016;
502-2859; 827-8178;
8420-8042 (Manila line)
Fax # 8420-8042 (Manila line)
QUEZON – CANDELARIA BRANCH
Pan Philippine Highway cor. Del Valle Street,
Poblacion, Candelaria, Quezon
Area Code: (042)
Tel # 797-4298; 797-4299
Fax # 797-4298
SAN FERNANDO BRANCHCBC Bldg., V. Tiomico Street
City of San Fernando, Pampanga
Area Code: (045)
Tel # 961-3542; 961-3549; 963-5458;
963-5459; 963-5460; 961-5651;
860-1925; 892-3211
Fax # 961-8352
SAN FERNANDO- SINDALAN BRANCH
Jumbo Jenra Sindalan, Brgy. Sindalan,
San Fernando City, Pampanga
Area Code: (045)
Tel # 455-5561; 455-0569
Fax # 455-0569
SAN JOSE CITY BRANCH
Maharlika Highway, Brgy. Malasin,
San Jose City
Area Code: (044)
Tel # 958-9094; 958-9096
Fax # 958-9094

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTSM CITY BATAAN BRANCH*) 8QLW 60&LW\%DWDDQ
Balanga City, Bataan
Area Code: (020)
SM CITY CABANATUAN BRANCHUGF SM City Cabanatuan,
Maharlika Highway
Brgy. H. Concepcion
Cabanatuan City, Nueva Ecija
Area Code: (044)
Tel # 958-1916; 486-5501
Fax # 958-1916
SM CITY CLARK BRANCH*) 8QLWV 60&LW\&ODUN
M. Roxas St.,CSEZ, Angeles City, Pampanga
Area Code: (045)
Tel # 499-0252; 499-0253; 499-0254
Fax # 499-0254
SM CITY DASMARIÑAS BRANCHLGF SM City Dasmariñas, Governor’s Drive,
Pala-pala, Dasmariñas, Cavite
Area Code: (046)
Tel # 424-1134
Fax # 424-1133
SM CITY TANZA BRANCH*) 8QLW 60&LW\7DQ]DBrgy. Daang Amaya, Tanza, Cavite
Area Code: (046)
Tel # 511-3531
SM CITY LIPA BRANCH*) 8QLWV 60&LW\/LSD-3
Laurel Highway, Brgy. Maraouy, Lipa City,
Batangas
Area Code: (043)
Tel # 784-0212; 784-0213
Fax # 784-0212
SM CITY NAGA BRANCH
SM City Naga, CBD II, Brgy. Triangulo
Naga City
Area Code: (054)
Tel # 472-1366; 472-1367
Fax #SM CITY OLONGAPO CENTRAL BRANCHIRUPHUO\60&LW\2ORQJDSR%UDQFK*)60&LW\2ORQJDSR&HQWUDO(DVW7DSLQDF
Olongapo City, Zambales
Area Code: (047)
Tel # 602-0039; 602-0040
Fax # 602-0038
SM CITY PAMPANGA BRANCH
8QLW$;%XLOGLQJSM City Pampanga, Mexico, Pampanga
Area Code: (045)
Tel # 455-0304; 455-0306; 455-0307
Fax # 455-0307
SM CITY SAN JOSE DEL MONTE BRANCHUGF SM City San Jose Del Monte,
San Jose Del Monte City, Bulacan
Area Code: (044)
Tel # 913-1562;
8985-3067(Manila Line)Fax # 913-1562
SM CITY SAN PABLO BRANCH*)60&LW\6DQ3DEOR1DWLRQDO+LJKZD\Brgy. San Rafael, San Pablo City, Laguna
Area Code: (049)
Tel # 521-0071; 521-0072
Fax # 521-0072
SM CITY STA. ROSA BRANCH
8QLW(;3*)60&LW\6WDRosa,
Bo. Tagapo, Sta. Rosa, Laguna
Area Code: (049)
Tel # 534-4640; 534-4813
Fax # 7901-1632 (Manila Line)TABACO CITY BRANCH
Ziga Ave. corner Berces Street,
Tabaco City, Albay
Area Code: (052)
Tel # 487-7150; 830-4178
Fax # 429-1811
TAGAYTAY CITY BRANCH
Foggy Heights Subdivision,
E. Aguinaldo Highway, Tagaytay City, Cavite
Area Code: (046)
Tel # 483-0609; 483-0608
Fax # 483-0609
TALAVERA BRANCHCBC Building, Maharlika Highway, Marcos
District, Talavera,
Nueva Ecija
Area Code: (044)
Tel # 940-2620; 940-2621
Fax # 940-2620
TARLAC BRANCHCBC Building, Panganiban near cornerF. Tanedo Street, Tarlac City, Tarlac
Area Code: (045)
Tel # 982-7771; 982-7772; 982-7773;
982-7774; 982-7775
Fax # 982-7772
TARLAC- BAMBAN BRANCHNational Road, Bgry. Anupul, Bamban, Tarlac
Area Code: (045)
Tel # 925-0402
Fax# 925-0402

SM CITY STO. TOMAS BRANCH
8QLW*)60&LW\6WR7RPDVBrgy. San Bartolome, Sto. Tomas, Batangas
Area Code: (043)
Tel # 341-6965

TARLAC- CAMILING BRANCH
Savewise Super Market, Poblacion,
Camiling, Tarlac
Area Code: (045)
Tel # 491-6445; 934-5085; 934-5086
Fax # 934-5085

SM CITY TELABASTAGAN BRANCH
SM City Telabastagan, San Fernando City,
Pampanga
Area Code: (045)
Tel # 403-9482
Fax # 403-9482

TARLAC- CONCEPCION BRANCH*)'HVFDQ]R%OGJ)7LPERO6W
San Nicolas Poblacion, Concepcion, Tarlac
Area Code: (045)
Tel # 491-2987
Fax # 491-3113

SOLANO BRANCHNational Highway Brgy. Quirino, Solano,
Nueva Vizcaya
Area Code: (078)
Tel # 326-6561
Fax # 326-6561

TARLAC- PANIQUI BRANCH
Cedasco Building, M. H del Pilar St.,
Poblacion, Paniqui, Tarlac
Area Code: (045)
Tel # 491-8465; 491-8464
Fax # 491-8465

SORSOGON BRANCHCBC Bldg., Ramon Magsaysay Ave.,
Sorsogon City, Sorsogon
Area Code: (056)
Tel # 211-1610; 421-5105
Fax # 421-5105

TARLAC- SAN RAFAEL BRANCHCBC Building, Brgy. San Rafael,Tarlac City, Tarlac
Area Code: (045)
Tel # 456-0150; 456-0121;
Fax # 456-0121

SUBIC BAY FREEPORT ZONE BRANCHCBC Building., Subic Bay Gateway Park,
Rizal Highway, Subic Bay Freeport Zone
Area Code: (047)
Tel # 252-1568; 252-1575; 252-1591
Fax # 252-1575

THE DISTRICT IMUS BRANCH*)7KH'LVWULFW,PXV$\DOD0DOO
Anabu II-D, Imus City, Cavite
Area Code: (046)
Tel # 416-1417; 416-4294; 416-4212
Fax # 416-4212

TRECE MARTIRES BRANCH*):DOWHUPDUW*RYHUQRUōV'ULYHFRUQHU
City Hall Road, Brgy. San Agustin,
Trece Martires City, Cavite
Area Code: (046)
Tel # 460-4897; 460-4898; 460-4899
Fax # 460-4898
TUGUEGARAO CITY BRANCH
Luna Street corner Burgos Street,
Tuguegarao City, Cagayan
Area Code: (078)
Tel # 844-0175; 844-0831
Fax # 844-0836
TUGUEGARAO- BALZAIN BRANCH
Balzain Highway, Tuguegarao City, Cagayan
Area Code: (078)
Tel # 396-2207; 396-2208
Fax # 396-2207
VIGAN CITY BRANCH
Burgos Street near corner Rizal Street,
Vigan City, Ilocos Sur
Area Code: (077)
Tel # 722-6968, 674-2272
Fax# 722-6948
VIRAC BRANCH*)046%OGJ4XH]RQ$YHQXH%UJ\Salvacion, Virac, Catanduanes
Area Code: (052)
Tel # 811-4321
Fax # 811-4321
ZAMBALES- BOTOLAN BRANCHNational Highway, Brgy. Batonlapoc.
Botolan, Zambales
Area Code: (047)
Tel # 811-1322; 811-1372
Fax # 811-1322
PROVINCIAL BRANCHES- VISAYASVISAYAS
ANTIQUE- SAN JOSE BRANCH
Felrosa Building, Gen. Fullon St. corner
Cerdena St., San Jose, AntiqueArea Code: (036)
Tel # 540-7095; 540-7097
Fax # 540-7096
BACOLOD-ARANETA BRANCH
CBC-Building, Araneta corner
San Sebastian Streets, Bacolod City
Area Code: (034)
Tel # 435-0648; 433-3818; 709-1618; 7042480; 445-5814
Fax # 704-1400
BACOLOD- LACSON BRANCH
Soliman Bldg., Lacson corner Luzurriaga Sts.
Bacolod City, Negros Occidental
Area Code: (034)
Tel # 474-2451
Fax # 474-2451

C HI NA BANK I NG COR P O R AT I O N

139

CHINABANKBACOLOD- LIBERTAD BRANCH
Libertad Street, Bacolod City,
Negros Occidental
Area Code: (034)
Tel # 435-1645; 435-1646; 703-9605
Fax # 435-1646

CEBU- BASAK- SAN NICOLAS BRANCH*)%DL&HQWHU1%DFDOVR$YH%DVDNSan Nicolas, Cebu City, Cebu
Area Code: (032)
Tel # 340-8113; 414-4742
Fax # 414-4742

CEBU-LAPU LAPU PUSOK BRANCH*)*ROGEHUU\6XLWHV3UHVLGHQW4XH]RQNational Highway, Pusok, Lapu-Lapu City
Area Code: (032)
Tel # 340-2098; 494-0631; 340-2099
Fax # 340-2098

BACOLOD- MANDALAGAN BRANCHCOFA Bldg., Lacson Street, Mandalagan,
Bacolod City, Negros Occidental
Area Code: (034)
Tel # 441-0500; 441-0388; 709-0067
Fax # 709-0067

CEBU- BOGO BRANCH
Sim Building, P. Rodriguez Street,
Bogo City, Cebu
Area Code: (032)
Tel # 434-7119; 266-3251
Fax # 434-7119

CEBU-LAPU LAPU CENTRO BRANCH
G.Y dela Serna St., Opon, Poblacion,
Lapu Lapu City, Cebu
Area Code: (032)
Tel # 231-3247; 493-5078
Fax # 231-3247

BACOLOD-NORTH DRIVE BRANCH
Anesa Bldg., B.S. Aquino Drive, Bacolod City
Area Code: (034)
Tel # 435-0063 to 65; 709-1658
Fax # 435-0064

CEBU BUSINESS CENTER
CBC Bldg., Samar Loop corner Panay Road,
Cebu Business Park, Cebu City
Area Code: (032)
Tel # 239-3760; 239-3761; 239-3762;
239-3763; 239-3764
Fax # 238-1438

CEBU- MAGALLANES BRANCH (MAIN)
CBC Bldg., Magallanes corner
Jakosalem Sts., Cebu City
Area Code: (032)
Tel # 255-0022; 255-0023; 255-0025;
255-0028; 253-0348;255-6093;
255-0266; 412-1877
Fax # 255-0026

BAYBAY BRANCH
Magsaysay Avenue, Baybay, Leyte
Area Code: (053)
Tel # 335-2899; 335-2898; 563-9228
Fax # 563-9228
BORONGAN BRANCHBalud II, Poblacion, Borongan,
Eastern SamarArea Code: (055)
Tel # 560-9948; 560-9938; 261-5888
Fax # 560 9938
CALBAYOG CITY BRANCH
Cajurao cor. Gomez Sts., Balud, Calbayog
Dist., Calbayog City, SamarArea Code: (055)
Tel # 209-1358; 533-8842
Fax # 533-8842

CEBU- CONSOLACION BRANCH*)60&LW\&RQVRODFLRQ%UJ\/DPDF
Consolacion, Cebu
Area Code: (032)
Tel # 260-0024; 260-0025
Fax # 423-9253

CEBU-MANDAUE BRANCHSV Cabahug Building 155-B SB Cabahug
Street, Brgy. Centro, Mandaue City, Cebu
Area Code: (032)
Tel # 346-5636; 346-5637; 346-2083
344-4335; 422-8188
Fax # 346-2083
CEBU-MANDAUE-CABANCALAN BRANCH
M.L. Quezon St., Cabancalan,
Mandaue City, Cebu
Area Code: (032)
Tel # 421-1364; 505-9908
Fax # 421-1364

CATARMAN BRANCH
Cor. Rizal & Quirino Sts., Jose P. Rizal St,
Catarman, Northern, SamarArea Code: (055)
Tel # 251-8802; 251-8821;500-9921
Fax # 500-9921

CEBU- ESCARIO BRANCH
Units 3 & 5 Escario Central,
Escario Road, Cebu City
Area Code: (032)
Tel # 416-5860; 520-9229
Fax # 520-9229
CEBU-F. RAMOS BRANCH
F. Ramos Street, Cebu City
Area Code: (032)
Tel # 253-9463; 254-4867; 412-5858
Fax # 253-9461

CATBALOGAN BRANCHCBC Bldg. Del Rosario St. cor.
Taft Avenue, Catbalogan City, SamarArea Code: (055)
Tel # 543-8121
Fax # 543-8121

CEBU- GORORDO BRANCH
No 424. Gorordo Ave., Bo. Camputhaw,
Lahug District, Cebu City, Cebu
Area Code: (032)
Tel # 414-0509; 239-8654
Fax # 239-8654

CEBU- AYALA BRANCH
8QLW*),QVXODU/LIH&HEX%XVLQHVV
Center, Mindanao Ave. cor. Biliran Road,
Cebu Business Park, Cebu City
Area Code: (032)
Tel # 262-1839; 260-6524
Fax # 260-6524

CEBU-GUADALUPE BRANCHCBC Building, M. Velez Street, cor.
V. Rama Ave., Guadalupe, Cebu City
Area Code: (032)
Tel # 254-7964; 254-8495; 254-1916
Fax # 416-5988

CEBU- MANDAUE NRA BRANCH*)%DL+RWHO&HEX2XDQR$YHFRU
Seno Blvd, North Reclamation Area,
Mandaue City, Cebu
Area Code: (032)
Tel # 272-6985; 342-2419
Fax # 272-6985

CEBU- IT PARK BRANCH*)7KH/LQN&HEX,73DUN$SDV
Cebu City, Cebu
Area Code: (032)
Tel # 266-2559; 262-0982
Fax # 266-2559

CEBU- MINGLANILLA BRANCH
Unit 9, Plaza Margarita Lipata,
Minglanilla, Cebu
Area Code: (032)
Tel # 239-7234; 490-6025
Fax # 239-7235

CEBU – LAHUG BRANCHJY Square Mall, No. 1 Salinas Dr., Lahug,
Cebu City
Area Code: (032)
Tel # 417-2122; 233-0977; 234-2062;
238-9243; 887-0140
Fax # 234-2062

CEBU- NAGA BRANCH
Leah’s Square, National South Highway,
East Poblacion, Naga City, Cebu
Area Code: (032)
Tel # 238-7623; 489-8218
Fax # 489-8218

CEBU- BANAWA BRANCH*)7KH-%ORFN'XWHUWH6W%DQDZDGuadalupe, Cebu City, Cebu
Area Code: (032)
Tel # 340-9561; 416-3827
Fax # 416-3827
CEBU-BANILAD BRANCHCBC Bldg., AS Fortuna St., Banilad,Cebu City
Area Code: (032)
Tel # 346-5870; 346-5881; 416-1001
Fax # 344-0087

140

CEBU- CARCAR BRANCH
Dr. Jose Rizal St., Poblacion I, Carcar, Cebu
Area Code: (032)
Tel # 487-8103; 487-8209; 266-7093
Fax # 487-8103

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTCEBU- MANDAUE-J CENTRE MALL
BRANCHLGF J Centre Mall, A.S Fortuna Ave.,
Mandaue City, Cebu
Area Code: (032)
Tel # 520-2898; 421-7067
Fax # 520-2898
CEBU-MANDAUE NORTH ROAD BRANCH*)8QLWV**%DVDN&RPPHUFLDOBuilding (Kel-2) Basak, Mandaue City
Area Code: (032)
Tel # 345-8861; 345-8862; 420-6767
Fax # 420-6767

CEBU-SM CITY BRANCH
8SSHU*)60&LW\&HEX-XDQ/XQDFRU
A. Soriano Avenue, Cebu City
Area Code: (032)
Tel # 232-0754; 232-0755; 231-9140
412-9699
Fax # 232-1448

ILOILO- MANDURRIAO BRANCH*)7KH*ULG'RQDWR3LVRQFRU
Pacencia Pison Avenues, Atria Park District,
San Rafael, Mandurriao, Iloilo City
Area Code: (033)
Tel # 333-3988; 333-4088
Fax # 501-6078

TAGBILARAN CITY BRANCH*)%4%XLOGHUZDUH%OGJ&DUORV3
Garcia Avenue, Tagbilaran City, Bohol
Area Code: (038)
Tel # 501-0688; 508-0677; 411-2484

CEBU- SM SEASIDE CITY BRANCHLGF SM Seaside City Cebu, South Road
Properties, 6000, Cebu City, Cebu
Area Code: (032)
Tel # 262-1772
Fax # 262-1772

ILOILO-RIZAL BRANCHCBC Building, Rizal cor. Gomez Streets,
Brgy. Ortiz, Iloilo City
Area Code: (033)
Tel # 336-0947; 338-2136; 509-8838
Fax # 338-2144

MINDANAO

CEBU- SUBANGDAKU BRANCH*)A.D. Gothong I.T. Center,
Subangdaku, Mandaue City, Cebu
Area Code: (032)
Tel # 344-6561; 344-6621; 260-1377;
424-0391
Fax # 344-6621

KALIBO BRANCH
Aklan Catholic College, Arch. Gabriel M.
Reyes Street, Kalibo, Aklan
Area Code: (036)
Tel # 500-8088; 500-8188; 268-2988
Fax # 500-8188

CEBU- TALAMBAN BRANCH
Unit UG-7 Gaisano Grand Mall,
Brgy. Talamban, Cebu City
Area Code: (032)
Tel # 236-8944; 418-0796
Fax # 236-8944

MAASIN CITY BRANCH*)6-&%OGJ7RPDV2SSXV6W
Brgy. Tunga-Tunga, Maasin City,
Southern Leyte
Area Code: (053)
Tel # 381-2287; 381-2288; 570-8488
Fax # 570-8488

CEBU-TALISAY BRANCHCBC Bldg., 1055 Cebu South National Road
Bulacao, Talisay City, Cebu
Area Code: (032)
Tel # 272-3342; 272-3348; 491-8200
Fax # 272-3346

NEGROS OCC.- SAN CARLOS BRANCH
Rizal corner Carmona Streets, San Carlos,
Negros Occidental
Area Code: (034)
Tel # 312-5819; 729-3276
Fax # 729-3276

DUMAGUETE CITY BRANCHCBC Bldg., Real Street Dumaguete City
Negros Oriental
Area Code: (035)
Tel # 422-8058; 225-5442; 225-5441;
225-4284; 225-5460
Fax # 422-5442

ORMOC CITY BRANCHCBC Building, Real cor. Lopez Jaena Sts.,
Ormoc City, Leyte
Area Code: (053)
Tel # 255-3651; 255-3652; 255-3653
Fax # 561-8348

NEGROS OCC.- KABANKALAN BRANCHCBC Building, National Highway, Brgy. 1,
Kabankalan, Negros Occidental
Area Code: (034)
Tel # 471-3349; 471-3364; 471-3738
Fax # 471-3738
ILOILO-IZNART BRANCH
Iznart corner J. de Leon Streets,
Brgy Magsaysay, Iloilo City 5000
Area Code: (033)
Tel # 337-9477; 337-9566; 511-1742
Fax # 337-9477
ILOILO- JARO BRANCHCBC Building, E. Lopez St. Jaro,
Iloilo City, Iloilo
Area Code: (033)
Tel # 320-3738; 320-3791
Fax # 503-2955
ILOILO-MABINI BRANCH
A. Mabini Street, Iloilo City
Area Code: (033)
Tel # 335-0295; 335-0370; 522-0599
Fax # 335-0370

PUERTO PRINCESA CITY BRANCH
Malvar Street near corner Valencia Street
Puerto Princesa City, Palawan
Area Code: (048)
Tel # 434-9891; 434-9892; 434-9893
Fax # 434-9892
ROXAS CITY BRANCH
1063 Roxas Ave. cor. Bayot Drive,
Roxas City, CapizArea Code (036)
Tel # 621-3203; 621-1780; 522-5775
Fax # 621-3203
SILAY CITY BRANCH
Rizal St., Silay City, Negros Occidental
Area Code: (034)
Tel # 714-6400; 495-5452; 495-0480
Fax # 495-0480;495-0480
TACLOBAN CITY BRANCH
Uytingkoc Building, Avenida Veteranos,
Tacloban City, Leyte
Area Code: (053)
Tel # 325-7706; 325-7707; 325-7708;
523-7700; 523-7800
Fax # 523-7706

BUTUAN CITY BRANCHCBC Building J.C. Aquino Avenue
Butuan City
Area Code: (085)
Tel # 341-5159; 341-7445; 815-3454;
815-3455; 225-2081
Fax # 815-3455
TAGBILARANSM CDO DOWNTOWN PREMIER BRANCH*)60&'2'RZQWRZQ3UHPLHU
Cagayan de Oro City
Area Code: (088)
Tel # 857-2212; 857-3742; 859-1063;
859-1054
Fax # 857-2212
CAGAYAN DE ORO-CARMEN BRANCH*)*75HDOW\%XLOGLQJMax Suniel St. corner
Yakal St., Carmen, Cagayan de Oro City
Area Code: (088)
Tel # 858-3902; 858-3903
Fax # 858-3903
CAGAYAN DE ORO- DIVISORIA BRANCH
RN Abejuela St., South Divisoria,
Cagayan de Oro City
Area Code: (088)
Tel # 2272-2641; 857-5759
Fax
857-4200
CAGAYAN DE ORO-LAPASAN BRANCHCBC Building, Claro M. Recto Avenue, Lapasan, Cagayan de Oro City
Area Code: (088)
Tel # 859-1651; 859-1645; 856-1325
Fax # 859-1651; 856-1325
CAGAYAN DE ORO-PUERTO BRANCH
Luis A.S. Yap Building, Zone 6, Brgy. Puerto,
Cagayan de Oro City, Misamis Oriental
Area Code: (088)
Tel # 880-7183; 880-7185
Fax # 880-7185
CDO- GAISANO CITY MALL BRANCH*)*DLVDQR&LW\0DOO&05HFWRFRUQHU
Corrales Extension, Cagayan de Oro City
Area Code: (088)
Tel # 880-1051; 880-1052
Fax # 2274-5880
COTABATO CITY BRANCH
No. 76 S.K. Pendatun Avenue,
Cotabato City, Maguindanao
Area Code: (064)
Tel # 421-4686; 421-4653
Fax # 421-4685

C HI NA BANK I NG COR P O R AT I O N

141

CHINABANKDAVAO-BAJADA BRANCH
B.I. Zone Building, J.P. Laurel Ave.,
Bajada, Davao City
Area Code: (082)
Tel # 221-0184; 221-0319; 221-0568
Fax # 224-8370

DAVAO- SM LANANG BRANCH*)60/DQDQJ3UHPLHU
J. P. Laurel Avenue, Davao City
Area Code: (082)
Tel # 285-1064; 285-1053
Fax # 285-1520

MALAYBALAY CITY BRANCH
Bethelda Building, Sayre Highway,
Malaybalay City, Bukidnon
Area Code: (088)
Tel # 813-3372
Fax # 813-3373

DAVAO-BUHANGIN BRANCHVG Building, Km. 5, Buhangin Road,
Buhangin Davao City
Area Code: (082)
Tel # 300-8335; 227-9764; 221-5970
Fax # 221-5970

DAVAO-TAGUM BRANCH
Davao Central Warehouse Club,
Inc. Building, Magugpo East,
Lower Apokon, Tagum City, Davao del Norte
Area Code: (084)
Tel # 655-9561; 655-9560; 655-6306;
655-6307
Fax # 655-9560

MIDSAYAP BRANCHCBC Building, Quezon Ave., Poblacion 2,
Midsayap, Cotabato
Area Code: (064)
Tel # 229-9700
Fax # 229-9750

DAVAO CITY- CALINAN BRANCH*)71(%OGJ'DYDR%XNLGQRQ1DWLRQDO
Highway, Calinan District, Davao City
Area Code: (082)
Tel # 224-9229; 224-9135
Fax # 224-9229
DAVAO- INSULAR VILLAGE BRANCH
Insular Village I, Km. 8, Lanang, Davao City
Area Code: (082)
Tel # 300-1892; 234-7166; 234-7165
Fax # 315-3392
DAVAO-MA-A BRANCH*)/DSH³D%XLOGLQJ0DF$UWKXU+LJKZD\Matina, Davao City
Area Code: (082)
Tel # 295-0472; 295-1072
Fax # 295-1072
DAVAO-MATINA BRANCH
Km. 4 McArthur Highway, Matina, Davao City
Area Code: (082)
Tel # 297-4288; 297-4455;
297-5880; 297-5881
Fax # 297-5880
DAVAO – MONTEVERDE BRANCH
Doors 1 & 2, Sunbright Bldg.,
Monteverde Ave., Brgy. 27-C,
Poblacion District, Davao City
Area Code: (082)
Tel # 225-3680; 225-3679
Fax # 225-3680
DAVAO- PANABO BRANCH
Grajeda Bldg (Major Building),
Quezon St., Brgy New Pandan,
Panabo City, Davao Del Norte
Area Code: (084)
Tel # 628-4057; 628-4065
Fax # 628-4053
DAVAO-RECTO BRANCHCBC Bldg., C.M. Recto Ave. cor.
J. Rizal St., Davao City
Area Code: (082)
Tel # 221-4481; 221-7028; 221-6921;
226-3851
Fax # 221-8814
DAVAO-STA. ANA BRANCH
R. Magsaysay Avenue corner F. Bangoy
Street, Sta. Ana District, Davao City
Area Code: (082)
Tel # 227-9501; 227-9551; 227-9601
221-1054; 221-1055; 221-6672
Fax # 226-4902

142

DAVAO-TORIL BRANCH
McArthur Highway corner St. Peter Street,
Crossing Bayabas, Toril, Davao City
Area Code: (082)
Tel # 303-3068; 295-2334; 295-2332
Fax # 295-2332
DIPOLOG CITY BRANCHCBC Building, Gen Luna corner
Gonzales Streets, Dipolog City
Area Code: (065)
Tel # 212-6767; 212-6768; 908-2008
Fax # 212-6769
GEN. SANTOS CITY BRANCHCBC Bldg., I. Santiago Blvd.,
Gen. Santos City
Area Code: (083)
Tel # 553-1618; 552-8288
Fax # 553-2300
GEN. SANTOS CITY –DADIANGAS BRANCH
M. Roxas Ave. corner Lapu-Lapu Street,Brgy. Dadiangas East, Gen. Santos City,
South Cotabato
Area Code: (083)
Tel # 552-8576
Fax # 552-8290
ILIGAN CITY BRANCH
Lai Building, Quezon Avenue Extension,
Pala-o, Iligan City
Area Code: (063)
Tel # 221-5477; 221-5479; 492-3009;
221-3009
Fax # 492-3010

OZAMIZ CITY BRANCH
Gomez corner Kaamino Streets, Ozamiz City
Area Code: (088)
Tel # 521-2658; 521-2659; 521-2660
Fax # 521-2659
PAGADIAN CITY BRANCH
Marasigan Building, F.S. Pajares Avenue,
Pagadian City
Area Code: (062)
Tel # 215-2781; 215-2782; 925-1116
Fax # 214-3877
SM CITY CDO UPTOWN BRANCH*)60&LW\&'28SWRZQ
North Wing Bldg., Las Ramblas St.,
Masterson Ave., Pueblo De Oro Business
Park, Cagayan De Oro City, Misamis Oriental
Tel # (088) 565-0919; 565-0916
SURIGAO CITY BRANCHCBC Building, Amat St., Barrio Washington,
Surigao City, Surigao del Norte
Area Code: (086)
Tel # 826-3958; 826-3968
Fax # 826-3958
VALENCIA BRANCH
A. Mabini Street, Valencia, Bukidnon
Area Code: (088)
Tel # 828-2048; 828-2049
Fax# 828-2048
ZAMBOANGA CITY BRANCH
CBC-Building, Gov. Lim Avenue corner
Nuñez Street, Zamboanga City
Area Code: (062)
Tel # 991-2978; 991-2979; 991-1266
Fax # 991-1266

ILIGAN CITY- SOLANA DISTRICT BRANCH
Andres Bonifacio Hi-way, Brgy. San Miguel,
Iligan City, Lanao del Norte
Area Code: (063)
Tel # 224-7664; 224-7665
Fax # 224-7664

ZAMBOANGA- GUIWAN BRANCH*)<DQJōV7RZHU0&/REUHJDW1DWLRQDO
Highway, Guiwan, Zamboanga City
Area Code: (062)
Tel # 984-1751; 984-1754
Fax # 984-1751

KIDAPAWAN CITY BRANCH
Datu Ingkal St., Brgy. Poblacion,
Kidapawan City
Area Code: (064)
Tel # 577-3509; 577-3510
Fax # 577-3510

ZAMBOANGA- SAN JOSE GUSU BRANCH
Yubenco Supermarket, San Jose Gusu,
Zamboanga City, Zamboanga del Sur
Area Code: (062)
Tel # 995-6154; 955-6155
Fax # 955-6154

KORONADAL CITY BRANCH
Gen. Santos Drive corner Aquino St.,
Koronadal City, South Cotabato
Area Code: (083)
Tel # 228-7838; 228-7839; 520-1788
Fax # 228-7839

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

Consumer
CONSUMER BANKING CENTER BACOLOD
China Bank – Bacolod Araneta)&%&%OGJ$UDQHWD6W%DFRORG&LW\
Tel. No.:(034) 435-0647(034) 435-0250
Email: ihsaplagio@chinabank.phCenter Head: Ivy H. Saplagio
CONSUMER BANKING CENTER BATANGAS
China Bank – Batangas City)&%&%OGJ3%XUJRV6W
Batangas City, Batangas
Tel. No.:(043) 723-7127(043) 723-4294(02) 8520-6161
Email: egricardo@chinabank.ph
wmdimalaluan@chinabank.ph
Sales Head Real Estate: Winnie M. Dimalaluan
Sales Head Vehicle: Evelyn G. Ricardo
CONSUMER BANKING CENTER CABANATUAN
China Bank – Cabanatuan City)&%&%OGJ3DFR5RPDQ6W
Brgy. Dimasalang, Cabanatuan City
Nueva Ecija
Tel. No.:(044) 600-1575(044) 463-1063(044) 464-0099
Email: ergatdula@chinabank.phCenter Head: Emilie R. Gatdula

BankingCenters

CONSUMER BANKING CENTER –CAGAYAN DE ORO
China Bank – Cagayan De Oro Divisoria)&%&%OGJ51$EHMXHOD6W
Divisoria, Cagayan De Oro City
Tel. No.:(088) 859-1232(088) 856-2409
Email: mmdcarpio@chinabank.phCenter Head: Ma. Melody D. Carpio
CONSUMER BANKING CENTER - CEBU
China Bank – Cebu Business Park)&%&&RUSRUDWH&HQWHU
Samar Loop cor. Panay Road
Cebu Business Park, Cebu City
Tel. No.:(032) 416-1606(032) 346-4448(032) 416-1915(032) 239-3733
Email: khltan@chinabank.phCenter Head: Kinard Hutchinson L. Tan
CONSUMER BANKING CENTER DAGUPAN
China Bank – Dagupan-Perez
Siapno Bldg., Perez Boulevard
Dagupan City
Tel. No.:(075) 522-8471(075) 522-8472
Email: cjdbautista@chinabank.phCenter Head: Carlo Juan D. C. Bautista OIC

CONSUMER BANKING CENTER - DAVAO
China Bank – Davao-Recto)&%&%OGJ&05HFWR
Cor. J. Rizal Sts., Davao City
Tel. No.:(082) 226-2103(082) 221-4163(082) 222-5761(082) 222-5021
Email: rdmatela@chinabank.phCenter Head: Rhea D. Matela OIC
CONSUMER BANKING CENTER - ILOILO
China Bank – Iloilo-Rizal)&%&%OGJ5L]DOFRU*RPH]6WV
Brgy. Ortiz, Iloilo City
Tel. No.:(033) 336-7918(033) 503-2845(033) 336-7909
Email: mdcelajes@chinabank.phCenter Head: Marvin D. Celajes
CONSUMER BANKING CENTER PAMPANGA
China Bank – San Fernando)&%&%OGJ97LRPLFR6W
Sto. Rosario Poblacion, City of San Fernando,
Pampanga
Tel. No.:(045) 652-6144(045) 652-6952
Email: cjdbautista@chinabank.phCenter Head: Carlo Juan D. C. Bautista

ManagementOffices

Wealth

MAKATI CLUSTER
15F, China Bank Bldg.,
8745 Paseo de Roxas cor. Villar Sts.,
Makati City
Tel. No.:8885-5693; 8885-5690;
8885-5694
Email: tgescolin@chinabank.ph
Contact Person:
Therese G. Escolin
GREENHILLS OFFICE)&KLQDEDQN*+2UWLJDV%UDQFK
14 Ortigas Avenue
Greenhills, San Juan City
Tel. No.:
8721-4396; 8727-7884
8727-7645; 8724-0413
Email: mvgpantaleon@chinabank.ph
Contact Person:
Ma. Victoria G. Pantaleon
QUEZON CITY OFFICE
2F, 82 West Ave., Quezon City
Tel. No.:8426-6980; 8441-4685;
8441-4690
Email: jaydeetan@chinabank.ph
Contact Person:
Jaydee Cheng Tan

BINONDO OFFICE
6F China Bank Bldg.
Dasmariñas cor. Juan Luna,
Binondo, Manila
Tel. No.:8241-1452; 8241-7086
Email: ictanlimco@chinabank.ph
Contact Person:
Irene C. Tanlimco

ALABANG OFFICE
2F, Unit D, CBC Bldg.,
Acacia Ave., Madrigal Business Park,
Ayala Alabang, Muntinlupa City
Tel. No.:8659-2463; 8659-2464
Email: clramirez@chinabank.ph
Contact Person:
Claire L. Ramirez

KALOOKAN OFFICE
167 Rizal Ave., Extension
Kalookan City
Tel. No.:
8366-8669; 8352-3789
Email: jymacariola@chinabank.ph
Contact Person:
Jennifer Y. Macariola

CEBU OFFICE
7F Chinabank Corporate Center
Samar Loop cor Panay Road
Cebu Business Park, Cebu City
Tel. No.:(032) 415-5881(032) 239-3741 up to 44
Email: edrosales@chinabank.ph
Contact Person:
Eleanor D. Rosales

SAN FERNANDO OFFICE
2F V. Tiomico., San Fernando City,
Pampanga
Tel. No.:(045) 961-0486
Email: mcdpuno@chinabank.ph
Contact Person:
Ma. Cristina D. Puno

BACOLOD OFFICE
2F Soliman Bldg.,
Bacolod Lacson BranchLacson cor. Luzurriaga Sts.,
Bacolod City
Tel. No.:(034) 431-5549
Email: edrosales@chinabank.ph
Contact Person:
Eleanor D. Rosales

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Branches
METRO MANILA AND RIZAL
ACACIA ESTATES
Acacia Taguig Town Center
Acacia Estates, Ususan, Taguig City
7HO1RV  ALABANG HILLS
Alabang Commercial Citi Arcade
Don Jesus Boulevard, Alabang,
Muntinlupa City
7HO1RV  

BUENDIA - MAIN
CBS Building
314 Sen. Gil Puyat Avenue, Makati City
Tel.No.:(632) 8884-7645
Trunkline: (632) 8884-7600 locals 3901
and 3902
Mobile No.: 0917-8099638

AMANG RODRIGUEZ
Amang Rodriguez Avenue corner
Evangelista Street, Santolan, Pasig City
7HO1RV COMMONWEALTH AVE.
JocFer Building, Commonwealth Avenue
Brgy. Holy Spirit, Quezon City
Tel. Nos.:(632) 828ANGONO
Manila East, Road corner Don Benito Street
Brgy. San Roque, Angono, Rizal
7HO1R CAINTACK Square Mall, Ortigas Avenue Extension
Brgy. San Juan, Cainta, Rizal
Tel. No.:8659-4083
Mobile No.: 0928-5143750

GIL PUYAT BAUTISTA
Lot 25 Blk 74 Bautista Street cornerSen. Gil Puyat Avenue, Makati
7HO1R 
8354-5923
GREENHILLS – ORTIGAS AVENUE
VAG Building, Ortigas Avenue
Greenhills, San Juan City
7HO1RV 
8353-4656
KALOOKAN
Augusto Building, Rizal Avenue
Grace Park, Kalookan City
Tel. Nos.:(632) 8363-27KALOOKAN – MABINIAJ Building, 353 A. Mabini Street,
Kalookan City
Tel. No.:(632) 8961-2628

CUBAO
Fernandina 88 Condominium
222 P. Tuazon Boulevard
Araneta Center, Cubao, Quezon City
Tel. Nos.:(632) 8913-4

KATIPUNAN AVE.
One Burgundy Condominium
Katipunan Avenue, Loyola Heights,
Quezon City
7HO1RV 
Mobile No.: 0917-6283318

DEL MONTE
392 Del Monte Avenue, Brgy. Sienna,
Quezon City
7HO1R LAGRO
Bonaza Building, Quirino Highway
Greater Lagro, Novaliches, Quezon City
7HO1RV AYALA AVENUEVGP Center, 6772 Ayala Avenue,
Makati City
Tel. Nos.:(632) 8988-9555 Local 8100,
(632) 250-6985
Mobile No.: 0927-9071716

E. RODRIGUEZ SR. AVENUE
Hemady Square, E. Rodriguez Avenue
corner Doña Hemady Street, New Manila,
Quezon City
7HO1RV 
7987-4966
Mobile No.: 0917-8085214

LAS PIÑAS – ALMANZA UNO
Alabang - Zapote Road, Almanza Uno,
Las Piñas City
7HO1RV 
7966-9001
Mobile No.: 0917-8173526

BACLARAN
3751 Quirino Avenue corner Sta. Rita Street
Baclaran, Parañaque City
7HO1RV 
Mobile No.: 0917-7032503

ESPAÑA – SUNMALLSun Mall, España Boulevard cornerMayon Street Brgy. Sta. Teresita, Quezon City
7HO1RV 
Mobile No.: 0917-8103097

BANAWE
247-249 Banawe Street, Sta. Mesa Heights
Brgy. Lourdes, Quezon City
Tel. Nos.:(632) 

FELIX HUERTAS – JT CENTRALE
Unit 103 JT Centrale Mall
Fugoso corner Felix Huertas Street,Sta. Cruz, Manila
Tel. No.:(632) 8247-3177
Mobile No.: 0917-5538446

ANTIPOLOEMS Building, M.L. Quezon cornerF. Dimailig Street Brgy. San Roque,
Antipolo City, Rizal
7HO1RV 
ARANETA CENTER COD – SAVEMORE
Gen. Romulo Street, Araneta Center
Cubao, Quezon City
7HO1RV 
Mobile No.: 0917-8099670

BANGKAL
Amara Building, 1661 Evangelista Street
Bangkal, Makati City
7HO1RV 
BF HOMES
284 Aguirre Avenue, B.F. Homes,
Parañaque City
7HO1RV 
7964-1292
8988-9555 local 4873
Mobile No.: 0917-510-5911
BINONDO – JUAN LUNA
694-696 Juan Luna Street, Binondo, Manila
7HO1RV BLUMENTRITT
Blumentritt Street, near Oroquieta Street
Sta. Cruz Manila
7HO1RV 
8256-3840
Mobile No.: 0917- 8273205

144

BONI AVENUE
Raymond Tower Boni, 615 Boni Avenue
Plainview, Mandaluyong City
7HO1RV  

FILINVEST
BC Group Building, East Asia Drive
near corner Commerce Avenue,
Filinvest Corporate City, Alabang,
Muntinlupa City
7HO1R 
Mobile No.: 0917-8046443

MAKATI – CHINO ROCES
Graceland Plaza, 2176 Chino Roces Avenue
Pio del Pilar, Makati City
7HO1RV 
Mobile No.: 0917-5106078
MAKATI – J.P. RIZAL
882 J.P. Rizal Street, Poblacion, Makati City
Tel. No.:(622) 8890-1027
Mobile No.: 0917-5105919
MALABON - FRANCIS MARKETSAVEMOREFrancis Market, Governor Pascual corner
M.H. Del Pilar Street, Malabon City
7HO1RV 
Mobile No.: 0917-5614811
MANDALUYONG
Paterno’s Building, 572 New Panaderos
Street, Brgy. Pag-asa, Mandaluyong City
7HO1RV FTI HYPERMARKET TAGUIG
DBP Avenue, Food Terminal Incorporated
Western Bicutan, Taguig City
7HO1RV 
Mobile No.: 0917-5615131

MANDALUYONG – SHAW BLVD.
500 Shaw Tower, 500 Shaw Boulevard
Mandaluyong City
7HO1RV Mobile No.: 0917-5806593

G. ARANETA
195 G. Araneta Avenue, Quezon City
7HO1R 
Mobile No.: 0917-8287829

MARIKINA
33 Bayan-Bayanan Avenue
Brgy. Concepcion 1, Marikina City
7HO1RV 
Mobile No.: 0917-8108618

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTMARIKINA – GIL FERNANDO AVENUE
CTP Building, Gil Fernando Avenue,
Marikina City
7HO1RV 
NAVOTASFP Building No. 855 M. Naval St., Brgy.
Sipac-Almacen, Navotas City
Tel No. :(632) 82447435
Mobile No.: 0928-5142106
NEPA-Q MART – SAVEMORE
770 Saint Rose Building,EDSA and K-G Street
West Kamias, Quezon City
Tel. No.:(632) 88351-4884
Mobile No.: 0917-8636069
NINOY AQUINO AVENUE*)6N\IUHLJKW%XLOGLQJ
Ninoy Aquino Avenue corner Pascor Drive,
Parañaque City
7HO1RV NOVALICHESGround Floor, Unit 11, Nova Plaza Mall,
Quirino Avenue corner N. Ramirez St.,
Brgy. Novaliches Proper, Quezon City
7HO1RV 
Mobile No.: 0917-8005128
N.S. AMORANTO AVE.
Unit 101 R Place Building
255 N.S. Amoranto Sr. Avenue, Quezon City
7HO1RV 
7966-9075
Mobile. No.: 0917-8056964
ONGPIN
Ramada Manila Central Hotel
Quintin Paredes Road corner Ongpin St.,
Binondo, Manila
7HO1R

Mobile No.: 0917-3175106
ORTIGAS CENTER
Hanston Square, San Miguel Avenue
Ortigas Center, Pasig City
7HO1RV 
Mobile No.: 0917-8078394
PARAÑAQUE – BETTER LIVING
90 Doña Soledad Avenue,
Better Living Subdivision
Bicutan, Parañaque City
7HO1RV 
Mobile No.: 09175615576
PARAÑAQUE – JAKA PLAZAJaka Plaza Center, Dr. A. Santos Avenue(Sucat Road)
Brgy. San Isidro, Parañaque City
7HO1RV 
PARAÑAQUE – LA HUERTA
1070 Quirino Avenue,
La Huerta, Parañaque City
7HO1RV 
Mobile No.: 0917-5788058
PARAÑAQUE – MOONWALK
Kassel Residence, E. Rodriguez Avenue
Moonwalk, Parañaque City
7HO1RV 
Mobile No.: 0917-6218321
PASAY – LIBERTAD
533 Cementina Street, Libertad, Pasay City
7HO1RV 
Mobile No.: 0917-8080695
PASIG – CANIOGAN
KSN Building, C. Raymundo Avenue
Caniogan, Pasig City
7HO1RV local 4786
Mobile No.: 0917-5206966

PASIG MUTYA
Richcrest Building,Caruncho corner Market Avenue
San Nicolas, Pasig City
7HO1RV 
7906-3129
Mobile No.: 0917-8173133
PASIG – PADRE BURGOS
114 Padre Burgos Street, Kapasigan,
Pasig City
Tel. No.:(632) 8650-3361
Mobile No.: 0917-5747874
PASO DE BLAS
Andoks Building, 629 Gen. Luis Street
0DOLQWD,QWHUFKDQJHŊ1/(;
Paso de Blas, Valenzuela City
7HO1RV PATEROS
Unit CC1, East Mansion Townhomes
Elisco Road, Sto. Rosario, Pateros City
7HO1RV 
Mobile No.: 0917-8130535
PATEROS – ALMEDA
120 M. Almeda Street, Pateros City
7HO1RV PEDRO GIL
LKE Building, Pedro Gil Street corner
Pasaje Rosario, Paco, Manila
7HO1RV 
Mobile No.: 0917-8636307
PLAZA STA. CRUZMBI Building, Plaza Sta. Cruz,
Sta. Cruz, Manila
7HO1RV 
Mobile No.: 0917-5965826

STA. ANA MANILA
Savemore Pedro Gil Street, Sta. Ana, Manila
7HO1RV 
Mobile No.: 0917-8140390
STA. MESA
4128 Ramon Magsaysay Boulevard
Sta. Mesa, Manila
7HO1RV 
Mobile No.: 0917-8353352
TAFT – QUIRINO AVENUE
Esther Building, 1945 Taft Avenue,
Malate, Manila
7HO1RV 
Mobile No.: 0917-5807061
TANDANG SORA
Cecile Ville Building III, 670 Tandang Sora
Avenue corner General Avenue,
Tandang Sora, Quezon City
Tel. No.:(632) 7968-4719
Mobile No.: 0917-8017585
TAYTAY
C. Gonzaga Building II
Manila East Road, Taytay, Rizal
7HO1RV 
Mobile No.: 0917-5786978
TAYUMAN1925-1929 Rizal Avenue
near corner Tayuman Street,Sta. Cruz, Manila
7HO1RV 
Mobile No.: 0917-8325078
TIMOG
Jenkinsen Towers Condominium
80 Timog Avenue, Quezon City
7HO1RV QUEZON AVENUEGJ Building, 385 Quezon Avenue
West Triangle, Quezon City
Tel. No.:(632) 8332-2638
Mobile No.: 0917-5382423

TWO ECOM
Two E-Com Center Tower B
Ocean Drive corner Bayshore Drive
Mall of Asia Complex, Pasay City
7HO1RV QUEZON AVENUE – PALIGSAHAN
1184-A Ben-Lor Building
Brgy. Paligsahan, Quezon City
7HO1RV 

UN AVENUE
552 United Nations Avenue, Ermita, Manila
7HO1RV 
Mobile No.: 0917-5382421

QUIAPO – ECHAGUE
Carlos Palanca corner P. Gomez Street
Echague, Quiapo, Manila
Tel. No.:(632) 8959-4450

VALENZUELA – MARULAS
92 J Ong Juanco Building
MacArthur Highway, Marulas,
Valenzuela City
7HO1RV RADA
HRC Center, 104 Rada Street
Legaspi Village, Makati City
7HO1RV 
ROOSEVELT
342 Roosevelt Avenue, Quezon City
7HO1RV 
8688-9146
SAN JUAN
Madison Square, 264 N. Domingo Street
Brgy. Pasadena, San Juan City
Tel. No.:(632) 8637-4759
Mobile No.: 0917-561-5639
SAVEMORE ANONAS
Maamo Street, Road Lot 30, V. Luna Street
and Anonas Extension, Sikatuna,
Quezon City
Tel. No.:(632) 8351-4928
Mobile No.: 0917-8636157
SOUTH TRIANGLE
Sunnymede IT Center, Quezon Avenue
South Triangle, Quezon City
7HO1RV 
8256-4841
Mobile No.: 0917-8431722

VISAYAS AVE.
Wilcon City Center Mall,
Upper Ground Floor
Visayas Avenue, Quezon City
Tel. No.:(632) 8990-6543
WILSON
219 Wilson Street, Greenhills, San Juan City
7HO1RV NORTH LUZONANGELES – RIZAL AVENUE
639 Rizal Street, Angeles City
7HO1RV ORFDO   
ARAYAT
Cacutud, Arayat, Pampanga
7HO1RV     ORFDOBAGUIOB 108 Lopez Building, Session Road
corner Assumption Road, Baguio City
Tel. No.:(074) 446-3993
Mobile No.: 0917-8493218

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BALAGTAS
Ultra Mega Supermarket,
MacArthur Highway Burol 1st,
Balagtas, Bulacan
7HO1RV 
(632) 8884-7600 local 4316

SANTIAGO – VICTORY NORTEJECO Building, Maharlika Highway
corner Quezon Street, Victory Norte
Santiago City, Isabela
7HO1RV   
9994-7600 local 4374

BALANGA
D.M. Banzon Street, Balanga City, Bataan
7HO1RV     ORFDO

MALOLOS – CATMON
Paseo Del Rosario, Catmon,
City of Malolos, Bulacan
7HO1RV     ORFDO

BALIBAGOJEV Building, MacArthur Highway
Balibago, Angeles City
7HO1RV 
(632) 8884-7600 local 4332

MEYCAUAYAN
Mancon Building, MacArthur Highway
Calvario, Meycauayan, Bulacan
7HO1RV 
(632) 8884-7600 local 4326

STA. MARIA
Gen. Luna corner De Leon Street
Poblacion, Sta. Maria, Bulacan
7HO1RV   
ORFDOBALIUAG713 Naning Street, Poblacion
Baliuag, Bulacan
7HO1RV     ORFDOMOUNT CARMEL
Km. 78 MacArthur Highway,
Brgy. Saguin City of San Fernando,
Pampanga
7HO1RV  
(632) 8884-7600 local 4330

STA. RITA
San Vicente, Sta. Rita, Pampanga
7HO1RV local 4791

CABANATUAN – BAYAN
Duran Building, Burgos Avenue,
Cabanatuan City
7HO1RV     ORFDOCAUAYAN*)$9%XLOGLQJ)1'<6W
along Cabatuan Road, Brgy. San Fermin,
Cauayan City, Isabela
Mobile No. : 0920-9408574
DAGUPAN
Lyceum-North Western University, Ground
Floor Tapuac District, Dagupan City
7HO1RV 
(632) 8884-7600 local 4362
DAU
MacArthur Highway, Dau, Mabalacat,
Pampanga
7HO1RV 
(632) 8988-9555 local 4868
DOLORESSTCI Building, MacArthur Highway
Brgy. San Agustin,
City of San Fernando, Pampanga
7HO1R   GUAGUA
Plaza Burgos, Guagua, Pampanga
7HO1RV   GUIGUINTO – RIS
RIS-5 Industrial Complex
68 Mercado Street, Tabe, Guiguinto, Bulacan
Tel. No.:(044) 235-79630
Mobile No.: 0917-8485249
LA UNION
A.G. Zambrano Building, Quezon Avenue
San Fernando City, La Union
7HO1RV 
(632) 8884-7600 local 4353
LAOAG CITYLC Square Building, J.P. Rizal corner
M.V. Farinas Streets, Laoag City, Ilocos Norte
7HO1R   
LINGAYEN
The Hub - Lingayen Building
Poblacion, Lingayen, Pangasinan
7HO1RV   
Mobile No.: 0917-8486063
MACABEBE
Poblacion, Macabebe, Pampanga
7HO1RV  
(632) 8884-7600 local 4795
Mobile No.: 0917-8218102

146

MALOLOS
Canlapan Street, Sto. Rosario
City of Malolos, Bulacan
Tel. No.:(044) 794-2793
Mobile No.: 0917-8354684

OLONGAPO
City View Hotel Building,
25 Magsaysay Drive
New Asinan, Olongapo City
Tel. No.:(047) 222-1891
Mobile No.: 0917-8078509
ORANI
National Road, Balut, Orani, Bataan
7HO1RV 
(632) 8884-7600 local 4323
PLARIDEL
0226 Cagayan Valley Road
Banga 1st, Plaridel, Bulacan
7HO1RV 
(632) 8884-7600 local 4315
PORAC
Cangatba, Porac, Pampanga
Tel. No.: (045) 329-3188
Mobile No.: 0917-8703305
SAN FERNANDO
Khy Trading Building,Jose Abad Santos Avenue
City of San Fernando, Pampanga
7HO1RV     ORFDO
SAN FERNANDO – BAYANJSL Building, Consunji Street
City of San Fernando, Pampanga
7HO1RV     ORFDO
SAN ILDEFONSO
Savemore Building, Cagayan Valley Road
Poblacion, San Ildefonso, Bulacan
7HO1RV   
ORFDO
SAN JOSE DEL MONTE
Giron Building
Gov. Halili Avenue, Tungkong Mangga
City of San Jose del Monte, Bulacan
7HO1RV   
Mobile No.: 0917-8354675
SAN MIGUEL
Norberto Street, San Miguel, Bulacan
Tel. No.:(044) 764-0826
SAN NARCISO
Brgy. Libertad, San Narciso, Zambales
7HO1RV     ORFDO
SAN RAFAEL
Cagayan Valley Road corner
Cruz na Daan San Rafael, Bulacan
7HO1RV   8988-9555 local 4799

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTSTA. ANA
Poblacion, Sta. Ana,Pampanga
7HO1RV   
ORFDO

SUBIC
Baraca, Subic, Zambales
7HO1RV   
ORFDO
TARLAC
MacArthur Highway, San Nicolas, Tarlac City
7HO1RV local 4337
Mobile No.: 0905-6793720
TUGUEGARAOMetropolitan Cathedral Parish Rectory
Complex Rizal Street, Tuguegarao City
7HO1RV local 4338
URDANETA
MacArthur Highway, Nancayasan
Urdaneta City, Pangasinan
7HO1RV local 4372
VIGAN
Agdamag Building, Quezon Avenue
corner Calle Mabini, Vigan City, Ilocos Sur
7HO1RV local 4359
SOUTH LUZONBACOOR – TALABA
Coastal Road corner Aguinaldo Highway
Brgy. Talaba, City of Bacoor, Cavite
7HO1RV   
Mobile No.: 0917-8354691
BATANGAS
No. 4 Burgos Street, Batangas City
Tel. No.:(043) 723-7652
Mobile No.: 0917-8173606
BIÑAN
Nepa Highway, San Vicente,
Biñan City, Laguna
7HO1RV   CABUYAO*)8QLW&&HQWUDOH
National Highway, Brgy. Sala,
Cabuyao City , Laguna
Moblie No.: 0920-9282824
CALAMBAHK Building II, National Highway
Brgy. Halang, Calamba City, Laguna
Mobile No.: 0917-8173609
CARMONA
Loyola Street , Brgy. Mabuhay, 5th District,
Carmona, Cavite
Mobile No.: 0920-9250754

CAVITE CITY
485 P. Burgos Street
Barangay 34, Caridad, Cavite City, Cavite
7HO1RV   
Mobile No: 0917-5615780

SAN PEDRO
Gen-Ber Building, National Highway
Landayan, San Pedro City, Laguna
7HO1RV 
8988-9555 local 4837

DARAGA
N & H Building, Rizal Street
Brgy. San Roque, Daraga, Albay
7HO1RV     

TSL CENTER TAGAYTAY
No. 9089 Gen. Emilio Aguinaldo Highway,
Mendez Crossing East, Tagaytay City
7HO1R 
(632) local 8988-9555 4876
Mobile No.: 0917-5615344

DASMARIÑAS
Veluz Plaza Building, Zone 1,
Aguinaldo Highway
Dasmariñas City, Cavite
7HO1RV   
IMUS
OLMA Building, Aguinaldo Highway
Tanzang Luma, Imus City, Cavite
7HO1RV   
GENERAL TRIASVCentral Mall, Governor’s Drive,
Gen. Trias City
7HO1RV KAWIT
Unit 105 Ground Floor, Lokal Mall Kawit,
Centennial Road, Brgy. Magdalo,
Kawit, Cavite
Mobile No.: 0968-8907828
LAGUNA – STA. CRUZ
E & E Building, Pedro Guevarra Avenue
Sta. Cruz, Laguna
Tel. No.:(049) 501-3084
Mobile No.: 0917-5615715
LEGAZPI CITY
F. Imperial Street, Barangay Bitano
Legazpi City, Albay
7HO1RV   
Mobile No.: 0917-836-0093
LIPA
China Bank Savings Building
C.M Recto Avenue, Lipa City
7HO1RV 
(632) 8884-7600 local 4325
LOS BAÑOS CROSSING
Lopez Avenue, Batong Malake,
Los Baños, Laguna
7HO1RV     ORFDO

STA. ROSA
Sta. Rosa-Tagaytay Highway,
Sta. Rosa City, Laguna
Tel. No.:(049) 502-9134
Mobile No.: 0917-5105951
STA. ROSA – BALIBAGOOld National Highway corner
Roque Lazaga Street, Sta. Rosa City, Laguna
7HO1RV     ORFDO
STO. TOMASThe Lifestyle Strip, Maharlika Highway
San Antonio, Sto. Tomas, Batangas
7HO1RV  
8884-7600 local 4389
Mobile No.: 0917-8164577
SORSOGON
God is Good Commercial Building
Rizal Street, Purok 5, Piot, West District
Sorsogon City, Sorsogon
Tel. No.:(056) 311-5786
Mobile No.: 0917-8351685
TANAUAN CITY
China Bank Savings Building
Jose P. Laurel National Highway
Darasa, Tanauan City, Batangas
Tel. No.:(043) 726 2758
Mobile No.: 0917-863-6160
VISAYAS – MINDANAOBACOLOD
Fordland Annex I Building, Lacson Street
Bacolod City, Negros Occidental
7HO1RV ORFDORU  
8884-7600 local 4310
Mobile No.: 0977-8027452

DAVAO
8990 Corporate Center,
Quirino Avenue, Davao City
Tel. No.:(082) 221-3873
DAVAO RECTO
C. Villa Abrille Building
C.M. Recto Avenue, Davao City
7HO1RV     ORFDO
Mobile No.: 0917-8095808
DUMAGUETE
Ground Floor, Chateau Francisca Building,
200 North Road National Highway,
Brgy. Bantayan, Dumaguete City,
Negros Oriental 6200
Tel No.:(035) 527-5389
Mobile No.: 0917-8176812
GENERAL SANTOSGo Chay Ching Building
I. Santiago Boulevard, General Santos City
7HO1RV 
(632) 8884-7600 local 4350
ILOILO – IZNART
Golden Finance Building,Iznart Street, Iloilo City
7HO1RV  
(632) 8884-7600 local 4360
Mobile No.: 0917-8078378
ILOILO – JARO
Lopez Jaena corner El 98 Street, Jaro, Iloilo
7HO1RV 
(632) 8988-9555 local 4862
KALIBO
Market Lot 3459-E-1,Toting Reyes Street,
Kalibo, Aklan
Tel. No.:(036) 268-4379
Mobile No.: 0917-8047837
MANDAUEA. Del Rosario Avenue
Mantuyong, Mandaue City, Cebu
7HO1RV 
(632) 8988-9555 local 4818
ROXAS AVE. CAPIZ - CITYMALL
CityMall-Roxas City, Roxas Avenue
Barangay VI, Roxas City, Capiz
7HO1RV 
(632) 8988-9555 local 4153

LUCENA
Merchan corner Evangelista Street,
Lucena City
7HO1RV     ORFDOBUTUANJMC Building, J.C. Aquino Avenue
Brgy. Lapu Lapu, Butuan City,
Agusan Del Norte
Tel. No.:(085) 818-6665
Mobile No.: 0917-8341071

SAVEMORE TALISAY
NEGROS OCCIDENTAL
Savemore Talisay, Mabini Street,
Zone 12 Paseo Mabini, Talisay City,
Negros Occidental
7HO1RV     

MOLINO
Avon Building, 817 Molino Road
Molino III, City of Bacoor, Cavite
7HO1RV     ORF
Mobile No.: 0917-5615883

CAGAYAN DE ORO
Sergio Osmeña Street
Cogon District, Cagayan de Oro City
7HO1RV    ORFDOTACLOBANYVI Center Building A, Fatima Village,
Tacloban City
7HO1RV   NAGA
RL Building, Panganiban Street
Lerma, Naga City, Camarines Sur
7HO1RV 
(632) 8884-7600 local 4330
SAN PABLO
China Bank Savings Building
Rizal Avenue corner A. Fule Street,
San Pablo City
7HO1RV (049) 562-0697

CEBU LAHUGSkyrise IT Building, Brgy. Apas,
Lahug, Cebu City
Tel. No.:(032) 236-0810
CEBU – MANGO AVENUE
JSP Mango Realty Building, Gen. Maxilom
Avenue corner Echavez Street, Cebu City
7HO1RV     ORFDO
CEBU MANDAUE BASAK
Cebu North Road, Basak,
Mandaue City, Cebu
Tel. No.:(032) 346-8814

TAGBILARAN
Upper Ground Floor 3-4, Alta Citta Mall,
Honorio Grupo St. and C.P. Garcia Ave.,
Brgy. Poblacion II, Tagbilaran City, Bohol
Tel No.:(038) - 417-1788
TAGUM
CityMall, Maharlika Highway corner
Lapu- Lapu Extension,
Brgy. Magugpo, Tagum City
7HO1RV   
9555 local 4981
Mobile No.: 0917-8497228
ZAMBOANGACityMall, Don Alfaro Street,
Tetuan, Zamboanga City
Tel. No.:(062) 955-8709

C HI NA BANK I NG COR P O R AT I O N

147

C BS

Lending

Offices & Branch Lites

SME LENDING OFFICES
MAIN OFFICE
SME Lending GroupCBS Building, 314 Sen. Gil J. Puyat
Avenue, Makati City
Tel. Nos.: (632) 8988-9555
Locals 75065, 75066
75068, 75109, 75110
75142, 75150, 75156
73044 and 73045
BAGUIORoom D-303, Lopez Building
Session Road cor., Assumption Road,
Baguio City
Te.l No.: (632) 8884-7600
Local 74231
LA UNION
2F AG Zambrano Building
Catbangen, San Fernando City,
La Union
Tel. No.: (632) 8884-7600
Locals 74227 and 74106
PLARIDEL
2F CBS Building
Banga 1st, Plaridel, Bulacan
Tel. No.: (632) 8884-7600
Locals 74251, 74261 and 74130
PAMPANGA BUSINESS CENTER
2F JSL Building, Consiju St. Sto Rosario,
City of San Fernando, Pampanga
Tel No.: (632) 8884-7600
Locals 74103 and 74104
URDANETA
Brgy Nancayasan, MacArthur Highway
Urdaneta City, Pangasinan
Tel. No.: (632) 8884-7600
Local 74372
SOUTH LUZON
IMUS
CBS Imus – Tanzang Luma Branch,
OLMA Building, Aguinaldo Highway,
Tanzang Luma II, Imus, Cavite
Tel. Nos.: (046) 416-4992(046) 471-4715(632) 8884-7600
Locals 74868, 77848 and 73038
LIPA
2F China Bank Savings Building
CM Recto Avenue, Lipa City
Tel. No.: (043) 756-5003(632) 8988-9555
Locals 74253 and 74130
LEGAZPI
F. Imperial St., Barangay Bitano
Legazpi City, Albay
Tel. No.: (632) 8884-7600 Local 74273
MARIKINA
3F CTP Building
5A Gil Fernando Avenue
Brgy. San Roque, Marikina City
Tel. Nos.: (02) 8465-9819(632) 8884-7600 Local 74238

148

APD SALARY LOAN OFFICES
Cordillera Autonomous Region
BAGUIO Lending Center
B-108, Lopez Building
Session Road cor. Assumption Road,
Baguio City
Tel. No.:(074) 619-2097
Mobile No.: 0917-8619414
BANGUED
Oval Era Mall
Taft Street, Zone 4, Bangued, Abra
Mobile No.: 0947 999 8673
BONTOC
Aguana Building
Loc-ong Street, Poblacion, Bontoc,
Mountain Province
Tel. No.:(074) 604-0241
Mobile No.: 0928-5156927
LAGAWE
07 Rizal Avenue, Poblacion East,
Lagawe, Ifugao
Mobile No.: 0917-8009028
LUNA
Stall # 3, Cristobal Building
San Isidro Sur, Luna, Apayao
Tel. No.:(074) 634 0274
Mobile No.: 0928-5161358
TABUK
Sebastian Building
Purok 3, Bakras, Bulanao, Tabuk City, Kalinga
Tel. No.:(078) 624 0908
Mobile No.: 0928-5187579
REGION 1
ALAMINOS
Unit 101, S&F Building
Olongapo-Bugallon Road cor Asisten Street
Brgy. Palamis, Alaminos City, Pangasinan
Tel. No.:(075) 632 6409
Mobile No.: 0918-9673831
LINGAYEN Lending Center)8QLW 7KH+XE%XLOGLQJ
Solis Street, Poblacion, Lingayen, Pangasinan
Tel. No.:(075) 568-5347
Mobile No.: 0917-8619257
SAN FERNANDO Lending Center
A.G. Zambrano Building
Quezon Avenue, San Fernando City,
La Union
Tel. No.:(072) 687-2218
Mobile No.: 0917-8619408
SAN NICOLAS
VYV Building, Valdez Center
Barangay 1, San Nicolas, Ilocos Norte
7HO1RV   
Mobile No.: 0918-9572802
URDANETA
Alexander Street cor. Belmonte Street,
Poblacion, Urdaneta City, Pangasinan
Mobile No.: 0918-9673831

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTVIGAN Lending Center
Maestro Convention Center
Florentino Street, Brgy 1,
Vigan City, Ilocos Sur
Tel. No.:(077) 674-6062
Mobile No.: 0917-8619380
REGION 2CABARROGUIS
Purok 1 Gundaway, Cabarroguis,Quirino Province
Tel. No.:(078) 374-0491
Mobile No.: 0918-9649437
CAMALANIUGAN
Tuzon Building
Bulala, Camalaniugan, Cagayan
Mobile No.: 0947-8958212
SANTIAGO Lending Center
JECO Building
Maharlika Highway cor Quezon Avenue,
Victory Norte Santiago City, Isabela
Tel. No.:(078) 305-0064
SOLANO
2627 Zurman Plaza
225 J.P. Rizal Avenue, Poblacion South,
Solano, Nueva Vizcaya
Tel. No.:(078) 321-0238
Mobile No.: 0918-9188569
TUGUEGARAO Lending Center
Metropolitan Cathedral Parish Rectory
Complex Rizal Street,
Tuguegarao City, Cagayan
Tel. No.:(078) 825-0700
Mobile No.: 0917-8169491
REGION 3
BALER
Stall #3, Bonifacio Street, Brgy. Suclayin,
Baler, Aurora
Tel. No.:(042) 724-3973
Mobile No.: 0947-8920345
BOTOLAN
Casa Bien Building
Brgy. Batonlapoc, Botolan, Zambales
Mobile No.: 0918-9058513
CABANATUAN Lending Center)'XUDQ%XLOGLQJ3DGUH%XUJRV$YHQXH
Cabanatuan City, Nueva Ecija
Tel. No.:(044) 940-2679
Mobile No.: 0917-8740488
GERONA
Morayta Street, Poblacion 3, Gerona, Tarlac
Tel. No.:(045) 6065245
Mobile No.: 0920-9676942
MALOLOS Lending Center
Canlapan Street, Sto. Rosario,
Malolos City, Bulacan
Tel. No.:(044) 794-1648
Mobile No.: 0917-8012989

ORANI)&%6&RPPHUFLDO$UFDGH
National Road cor Balut Street,Brgy. Balut, Orani, Bataan
Tel. No.:(047) 636-0523
Mobile No.: 0918-9572952
SAN FERNANDO-PAMPANGA
Lending Center
JSL Building
Consunji Street, San Fernando City,
Pampanga
7HO1R   
Mobile No.:
0917-5523389
SAN JOSE CITY
Maharlika Highway, Barangay Malasin,
San Jose City, Nueva Ecija
7HO1R   
Mobile No.: 0928 516 8772
NATIONAL CAPITAL REGIONLA HUERTA-PARAÑAQUE Lending Center
Quirino Avenue, La Huerta, Paranaque City
Tel. No.:(02) 8682-6496
QUEZON AVENUE-QUEZON CITY
Lending Center)*-%XLOGLQJ
385 Quezon Avenue, Quezon City
Tel. No.:(02) 8372-7926
Mobile No.: 0917-8161341
BLUMENTRITT-MANILA Lending Center
1677 Blumentritt Street, Sta. Cruz, Manila
Tel. No.:(02) 8784-1823
Mobile No.: 0998-8615696
KALOOKAN-MABINI Lending Center
AJ Building
353 A. Mabini Street, Kalookan City
Mobile No.: 0967-4267021
PASIG-MUTYA Lending Center
2F Richcrest Building
Caruncho corner Market Avenue,
San Nicolas, Pasig City
Tel. No.:(02) 8403-3062
Mobile No.: 0999-8843422
REGION 4-A
BALIBAGO-STA. ROSA
7LL Pearl Road, Balibago Complex,
Barangay Balibago, Sta. Rosa Laguna
Tel. No.:(049) 501-6934
Mobile No.: 0998-5332878
BATANGAS Lending Center)3%XUJRV6WUHHW%DUDQJD\Batangas City
Tel. No.:(043) 333-1005
0RELOH1RV
GUMACARM Building, Maharlika Highway,
A. Bonifacio, Barangay Tabing Dagat,
Gumaca, Quezon
Tel. No.:(042) 911- 8281
Mobile No.: 0918-9645464

IMUS Lending Center
Gen. Emilio Aguinaldo Highway,
Tanzang Luma 1, Imus, Cavite
Tel. No.:(046) 416-1405
Mobile No.: 0917-8038045
INFANTA
Plaridel Street, Poblacion 38,
Infanta, Quezon Province
Tel. No.:(042) 785-9260
Mobile No.: 0928-5133032
LIPA Lending Center)&%6%XLOGLQJ
C.M. Recto Avenue, Brgy 4,
Lipa City, Batangas
Tel. No.:(043) 727-3302
Mobile No.: 0917-8277152
LUCENA Lending Center
Merchan cor Evangelista Street,
Lucena City, Quezon
Tel. No.:(042) 717-9387
Mobile No.: 0917-8619387
SAN PABLO Lending Center
Rizal Avenue cor Lopez Jaena Street,
San Pablo City, Laguna
Mobile No.: 0917-8046178
TANAUAN Lending Center)&%6%XLOGLQJJose P. Laurel National Highway,
Darasa, Tanauan City, Batangas
Tel. No.:(043) 727-2029
Mobile No.: 0977-2647091
TANAY)1HVG\%XLOGLQJ
Manila East Road Cor E. Rodriguez Ave.,
Tanay, Rizal
Mobile No.: 0917-8013054
TAYTAY Lending Center)*RQ]DJD%XLOGLQJ
Manila East Road, Taytay, Rizal
Tel. No.:(02) 8332-1069
Mobile No.: 0917-8158627
REGION 4-B
CALAPAN Lending Center
R. King Commercial Building
Roxas Drive, Barangay Nacoco, Calapan City,
Oriental Mindoro
Tel. No.:(043) 748-4574
Mobile No.: 0918-9671675
PUERTO PRINCESA
Rizal Avenue corner Roxas Street,
Barangay Tagumpay,
Puerto Princesa City, Palawan
Tel. No.:(048) 423-1679
Mobile No.: 0999-9916554
BOAC
Deogracias Street corner San Miguel Street,
Malusak, Boac, MarinduqueTel. No.:(042) 754-5217

ODIONGANJBM Building
Regional Highway, Torrel, Dapawan,
Odiongan, Romblon
Tel. No.:(042) 752-5615
REGION 5
LEGAZPI Lending Center)/RW%ON3&6
Sol’s Subdivision, Purok 5,
37 Bitano, Legazpi City, Albay
Tel. No.:(052) 742-1034
Mobile No.: 0917-8059102
VIRAC),PSHULDO%XLOGLQJ
Gogon Centro, Virac, Catanduanes
Mobile No.: 0928-5171547
NAGA Lending Center
ELS Building, Panganiban Drive,
Concepcion Pequeña, Naga City
Tel. No.:(054) 881-2557
Mobile No.: 0917-8619406
DAET
Alegre Building
J. Lukban Street, Daet, Camarines Norte
Tel. No.:(054) 605-0484
Mobile No.: 0918-9485250
IRIGA
Everest Plaza Building
Zone 5, Highway 1, San Miguel,
Iriga City, Camarines Sur
Tel. No.:(054) 881-8869
Mobile No.: 0918-9577626
SORSOGON Lending Center)*RGLV*RRG%XLOGLQJ
Rizal Street, Piot, Sorsogon City, Sorsogon
Mobile No.: 0917-8161361
MASBATE
Ross Hotel, Quezon Street,
Masbate City, Masbate
Tel. No.:(056) 333-1975
Mobile No.: 0947-8933915
REGION 6–NEGROS ISLAND REGIONBACOLOD Lending Center
Fordland 1 Annex Building
Lacson Street, Bacolod City,
Negros Occidental
Tel. No.:(034) 445-5818
Mobile No.: 0917-8619362
KABANKALAN
Dinsay Building
National Highway Mabinay,
Kabankalan City, Negros Occidental
Tel. No.:(034) 435-9329
Mobile No.: 0918-9068711
SAN CARLOS
V. Gustilo Street, San Carlos City,
Negros Occidental
Mobile No.: 0918-9083793

C HI NA BANK I NG COR P O R AT I O N

149

C BS

REGION 6–PANAYILOILO Lending Center
Golden Commercial Building
Iznart Street, Iloilo City
Tel. No.:(033) 329-5238
Mobile No.: 0917-8619362
ESTANCIA
Old Sacramento Building
Sitio Poblacion, Highway, Cano-an,
Estancia, Iloilo
Tel. No.:(033) 397-7278
Mobile No.: 0918-9432088
GUIMARAS
Piazza Zemarcato Building
San Miguel, Jordan, Guimaras
Tel. No.:(033) 322-5213
Mobile No.: 0918-9656964
PASSI
LA Building
M. Palmares Street, Brgy Poblacion,
Ilawod, Passi City, Iloilo
Tel. No.:(033) 311-5704
Mobile No.: 0918-9067075
SAN JOSE DE BUENAVISTAAML Building 1
Dalipe corner Atabay Street,
San Jose de Buenavista, AntiqueTel. No.:(036) 641-2011
Mobile No.: 0918-9175291
KALIBO Lending Center
F. Quimpo Street connecting Mabini and
Toting Reyes Streets, Kalibo, Aklan
Mobile No.: 0917-8163655
ROXAS Lending Center
1 Mckinley Building
Mckinley comer San Roque Street,Roxas City, Capiz
Mobile No.: 0917-8064432
REGION 7
CEBU Lending Center)8QLW JSP Mango Plaza Building, Gen. Maxilom
Avenue corner Echavez Street, Cebu City
Tel. No.:(032) 238-7820
Mobile No.: 0917-8223514
BALAMBAN
D.C. Sanchez Street,Sta. Cruz Balamban, Cebu
Tel. No.:(032) 503 2273
Mobile No.: 0928 518 8346
BOGO)6LP%XLOGLQJ
P. Rodriguez Street, Brgy. La Purisima
Concepcion, Bogo City, Cebu
Tel. No.:(032) 252-7652
Mobile No.: 0918-9208760

150

CARCAR
Door 2, J.P. Rizal St. Poblacion 2,
Carcar City, Cebu
Tel. No.:(032) 262-0960
Mobile No.: 0918-9901276
TAGBILARAN
Unit 4, Old Holy Spirit School
J. Borja corner Remolador Street,
Poblacion II, Tagbilaran City, Bohol
Tel. No.:(038) 417-4323
Mobile No.: 0919-9978127
DUMAGUETE*)&HQWUDO$UFDGH%XLOGLQJ
Cervantes Street, Dumaguete City,
Negros Oriental
Tel. No.:(035) 522-1795
Mobile No.: 0918-9008339
REGION 8TACLOBAN Lending Center
YVI Center, Building A
Baybay S. Road, Brgy. 77, Fatima Village,
Marasbaras, Tacloban City, Leyte
Tel. No.:(053) 832-1874
Mobile No.: 0917-8267612
CALBAYOG
Rosales corner Rueda Street,
Calbayog City, Samar
Tel. No.:(055) 837-0323
Mobile No.: 0918-9852240
ORMOC
Real Street, District 22, Ormoc City, Leyte
Tel. No.:(053) 300-0110
Mobile No.: 0918-9573287
SOGOD
Palanca Building
Zone IV Poblacion Sogod, Southern Leyte
Mobile No.: 0917 802 7562
NAVAL
Corvera Street, Barangay Santissimo
Rosario, Naval, Biliran
Mobile No.: 0928 516 4510
REGION 9
ZAMBOANGA CITY Lending Center*)-6%%XLOGLQJ
Don Alfaro Street, Tetuan, Zamboanga City
Tel. No.:(062) 991-0788
Mobile No.: 0918-9676227
DIPOLOGSD ArcadeRizal Avenue, Dipolog City,
Zamboanga Del Norte
Tel. No.:(065) 908-1397
Mobile No.: 0939-9789016

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTPAGADIAN
Aline Building
Broca corner B. Aquino Street,
Pagadian City, Zamboanga del Sur
Tel. No.:(062) 947-4345
REGION 10CAGAYAN DE ORO Lending Center)6HUJLR2VPH³D6WUHHW&RJRQ'LVWULFWCagayan De Oro City, Misamis Oriental
Tel. No.:(088) 890-6443
Mobile No.: 0917-8619281
ILIGAN
Quezon Avenue Extension,
Barangay Villaverde, Poblacion,
Iligan City, Lanao del Norte
Tel. No.:(063) 221-7107
Mobile No.: 0918-9397659
MALAYBALAY
Gabrinez Building
Fortich Street, Barangay 9, Sayre Highway,
Malaybalay City, Bukidnon
Tel. No.:(088) 813-6931
Mobile No.: 0918-9651095
OZAMIZ*)-0(%XLOGLQJ
Capistrano Street, Aguada,Ozamis City, Misamis Occidental
Mobile No.: 0928-5132675
VALENCIA
Tamay Lang Business Triangle Building
Hagkol, Sayre Highway, Poblacion,
Valencia City, Bukidnon
Tel. No.:(088) 535-8858
Mobile No.: 0947-8976770
REGION 11
DAVAO CITY Lending Center
8990 Corporate Center
Quirino Avenue, Davao City, Davao del Sur
Tel. No.:(082) 287-6824
Mobile No.: 0917-8619403
DIGOS
CPP Building II, Rizal Avenue, Zone 1,
Digos City, Davao del Sur
Tel. No.:(028) 884-7600
Mobile No.: 0918-9485586
TAGUM Lending Center
CityMall, Maharlika Highway
cor Lapu-Lapu Extension
Brgy. Magugpo, Tagum City,
Davao del Norte
Tel. No.:(084) 216-8245
Mobile No.: 0912-9174164
MATI
Madaway Distributor Inc., Rizal Extension,Mati City, Davao Oriental
Tel. No.:(087) 811 -5002
Mobile No.: 0918-9628744

NABUNTURAN
National Highway, Poblacion,
Nabunturan, Davao De Oro
Tel. No.:084 667 0962
Mobile No.: 0947-8995189
REGION 12
GEN. SANTOS Lending Center
Go Chay Ching Building
Santiago Boulevard, General Santos City
Tel. No.:(083) 554-0211
Mobile No.: 0917-8162621
GLAN
Ruiz Building, Jose Hombrebueno Street,
Plaza Rizal, Brgy. Poblacion,
Glan, Sarangani Province
Tel. No.:(083) 500-2874
Mobile No.: 0918-9853901
ISULANJCB Building
Magbanua Street corner National Highway,
Kalawag I, Isulan, Sultan Kudarat
Tel. No.:(064) 471 8460
Mobile No.: 0928-5173422
KIDAPAWAN
Brookside Building
Datu Ingkal Street, Kidapawan City,
North Cotabato
Tel. No.:(064) 521 -0011
Mobile No.: 0928-5156957

KORONADAL
MCM Villamor Building
Gen. San Drive, Zone 2, Koronadal City,
South Cotabato
Tel. No.:(083) 552-2979
Mobile No.: 0918-9634815
REGION 13
BUTUAN Lending Center
JMC Building
JC Aquino Avenue, Brgy. Lapu-Lapu,
Butuan City, Agusan Del Norte
Tel. No.:(085) 8175413
Mobile No.: 0917-8155495
SURIGAO CITY
Gaisano Capital Building
Km. 4, Brgy. Luna, Surigao City,
Surigao Del Norte
Tel. No.:(086) 231-5069
0RELOH1RVBISLIG
R.B. Castillo Street, Brgy. Mangagoy,
Bislig City, Surigao Del Sur
Tel. No.:(082) 315-069
Mobile No.: 0947- 9910795
SAN FRANCISCO
Roxas Street, Purok 2, Brgy. 4,
San Francisco, Agusan del Sur
Tel. No.:(085) 2426879
Mobile No.: 0939-921-4587

C HI NA BANK I NG COR P O R AT I O N

151

SUBSIDIARIES AND AFFILIATE

CBS Building, 314 Sen. Gil Puyat Avenue, Makati City
Tel. No.: (632) 8988-9555
www.cbs.com.ph
China Bank Savings, Inc. (CBS) began operations on
September 8, 2008 following the acquisition of Manila
Bank by Chinabank in 2007. Subsequent mergers with
Unity Bank and Planters Development Bank bolstered
CBS as a leading thrift bank in the industry. With anationwide retail banking network and strong platform
IRUDXWRKRXVLQJWHDFKHUVDQGHQWHUSULVHƓQDQFH&%6LV
dedicated to servicing the needs of entry-level customers,
the broad consumer market and small business owners.
&%6LVFRPPLWWHGWRSURPRWLQJƓQDQFLDOLQFOXVLYHQHVVand uplifting the quality of life of consumers andentrepreneurs, in line with its Easy Banking for You brandof service.
BOARD OF DIRECTORS
Chairman
Ricardo R. Chua
Vice Chairman
Nancy D. Yang
Directors
James Christian T. Dee
Romeo D. Uyan, Jr.
Herbert T. Sy, Jr.
Jose L. Osmeña, Jr.
Patrick D. Cheng
Independent Directors
Antonio S. Espedido, Jr.
Philip S. L. Tsai
Claire Ann T. Yap
Genaro V. Lapez
Corporate Secretary
Atty. Arturo Jose M.
Constantino, III
MANAGEMENT TEAM
President
James Christian T. Dee
Consumer Lending Group
Head and Branch Banking
Group HeadJan Nikolai M. Lim
Consumer Lending
Deputy Group HeadKristine Michele C.
Broadhurst
Controllership Group Head
Luis Bernardo A. Pahuwan

Asset Recovery
Group HeadMay Grace F. Guzman

Chinabank Capital Corporation (Chinabank Capital) is
the wholly owned investment banking subsidiary of China
Banking Corporation. It was registered and licensed as
an investment house in 2015 as a result of the spin-off
RI&KLQDEDQN V,QYHVWPHQW%DQNLQJ*URXS7KHƓUPoffers a full suite of investment banking solutions thatenable clients to achieve their fundraising objectives
and strategic goals. The company’s services include
arranging, managing, and underwriting debt and equity
transactions, such as bond offerings, corporate notes
issuances, initial public offerings and follow-on offeringsof common and preferred shares, private placement of
VHFXULWLHVVWUXFWXUHGORDQVSURMHFWƓQDQFHUHDOHVWDWH
investment trusts, and asset securitizations. Chinabank&DSLWDODOVRSURYLGHVƓQDQFLDODGYLVRU\VHUYLFHVVXFKDV
deal structuring, valuation, and execution of mergers,
acquisitions, divestitures, joint ventures, and othercorporate transactions.
BOARD OF DIRECTORS

Branch Banking
Group HeadJan Nikolai M. Lim*

Chairman
Ricardo R. Chua

APD Lending Group Head
Niel C. Jumawan

Vice Chairman
Romeo D. Uyan, Jr.
b
Directors
Howard Conrad T. Sy
Lilian Yu
Magnolia Luisa N. Palanca
Ryan Martin L. Tapia

Human Resources
Division Head
Atty. Josephine F. Fernandez
Risk Management
Division Head
Raymond C. Apo
WITH INTERLOCKINGPOSITION IN CHINABANK
Administrative Services
Division HeadBaldwin A. Aguilar&KLHI6HFXULW\2IƓFHU
Nestor Jayson V. Camba

Independent Directors
Margarita L. San Juan
Philip S. L. Tsai
Claire Ann T. Yap
Corporate Secretary
Atty. Wilfred Francis B. Martinez
MANAGEMENT TEAM
President
Ryan Martin L. Tapia

Human Resources Group
Tani Michelle M. Cruz

Head of Origination and Client Coverage
Jose Nicolas E. Co
Marian Elisa C. Carlos,QIRUPDWLRQ6HFXULW\2IƓFHU
Hanz Irvin S. Yoro

Head of Execution and Treasurer
Atty. Juan Paolo E. Colet&KLHI7HFKQRORJ\2IƓFHU
Francis Andre Z.
De Los Santos

Head of Distribution
Ma. Martha S. Javelosa

Retail Banking Business
Segment HeadJose L. Osmeña, Jr.
* Effective Jan. 1, 2024

152

28F BDO Equitable Tower
8751 Paseo de Roxas, Makati City
Tel. No.: (632) 8885-5798
cbcapital@chinabank.ph

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTHead of Compliance & Risk Management
Jason Eric G. Jamias
Business Manager
Roberto A. Cabusay

28F BDO Equitable Tower
8751 Paseo de Roxas, Makati City
Tel. No.: (632) 8230 6660 to 64
China Bank Securities Corporation (Chinabank
Securities) is the wholly-owned stock brokeragesubsidiary of Chinabank Capital. Chinabank Securities
complements Chinabank Capital’s equity underwriting
activities covering the distribution of issues under
LQLWLDODQGRUIROORZRQRIIHULQJVDQGSURYLGLQJ
research and related equity services.
Chinabank Securities operates as a stock brokerage
licensed by the SEC to engage in dealing, for its own
and for its customer’s accounts, securities listed in thePhilippine Stock Exchange. The company is eligible
to trade dollar-denominated securities or DDS, realestate investment trust or REITs and also offers an
online stock trading platform.
BOARD OF DIRECTORS
Chairman
Ryan Martin L. Tapia
9LFH&KDLUPDQb
Atty. Juan Paolo E. Colet
Independent Directors
Genaro V. Lapez
Claire Ann T. Yap
Directors
Romeo D. Uyan, Jr.
Gerald O. Florentino
Marisol M. Teodoro
Corporate Secretary
Marynette M. Gravador
MANAGEMENT TEAM
President & CEO
Marisol M. Teodoro
OIC and Acting Treasurer
Annabelle G. Celso
Sales and Trading Director
Julius M. German
Research Director
Rastine Mackie D. Mercado

2F VGP Center, 6772 Ayala Avenue Makati City
Tel. No.: (632) 8885-5555
Chinabank Insurance Brokers, Inc. (CIBI) Incorporated
on November 3, 1998 as a full-service insurance broker,
providing insurance advice and solutions for retail andcorporate customers, with a wide and comprehensive
range of products for non-life and life insurance
UHTXLUHPHQWV&,%,RIIHUV3URSHUW\0RWRU0DULQH%RQGV
6XUHW\&RQVWUXFWLRQ$OO5LVN(QJLQHHULQJ/LQHV/LDELOLW\)LQDQFLDO/LQHVVXFKDV'LUHFWRUV 2IƓFHUV/LDELOLW\Professional Indemnity, Trade Credit, Cyber Liability,
Travel and Group Personal Accident for Bank clients
including non-mortgaged accounts. CIBI is 100% ownedby the Bank.
BOARD OF DIRECTORS
ChairmanPatrick D. Cheng
Directors
Jose L. Osmeña Jr.
Frankie G. Panis
Independent Directors
Philip S. L. TsaiMargarita L. San Juan

Account Management
Head (Chinabank)Anne Roselle A. Buna
Account Management
Head (CBS)
Deofel F. Jover
Accounting HeadMaria Victoria A. Dagucon

Corporate Secretary
Atty. Belentte C. Tan

Operations Head
Arleen B. Gallano

MANAGEMENT TEAMOIC – Claims Head
Richelle S. Ayuro

PresidentFrankie G. Panis
Corporate Treasurer
Maria Primitiva Carmela D.
Canceran
Senior Risk and TechnicalAdvisorFreedom A. Gaviola
Technical and Compliance2IƓFHU
Edgardo C. Rosal

CIBI Branches Head/Central and North Luzon
Branch Head
Herschel Fitzgerald G.
TumibaySouth Luzon Branch HeadRoberto D. Consul
Cebu Branch HeadMaria Carolina B. Ylanan
Davao Branch Head
Richelle R. Aguilon

5LVNDQG7HFKQLFDO2IƓFHU
Pamela M. Alcoba

Associated Person and Compliance & Risk Director
Minnie I. Formales

C HI NA BANK I NG COR P O R AT I O N

153

SUBSIDIARIES AND AFFILIATE

28F BDO Equitable Tower
8751 Paseo de Roxas, Makati City
Tel. No.: (632) 8885-5798

4F and 15F Chinabank Building,8745 Paseo de Roxas cor. Villar St., Makati City
Tel. No.: (632) 8885-5555

CBC Assets One (SPC) Inc. was incorporated in thePhilippines on June 15, 2016 as a special purpose
corporation engaged primarily in the securitizationof assets which shall include, but is not limited
to receivables, mortgage loans and other debt
instruments. The company is a wholly-owned subsidiaryof Chinabank Capital.

CBC Properties and Computer Center, Inc. (CBC-PCCI)
was created on April 14, 1982. It provides computer
related services solely to the Chinabank group. It
manages the Bank’s electronic banking and e-commercerequirements, including sourcing, developing and
PDLQWDLQLQJVRIWZDUHDQGKDUGZDUHƓQDQFLDOV\VWHPV
access devices and networks to foster the safety andsoundness of Chinabank’s technology infrastructure andkeep its processing capabilities in top shape.

BOARD OF DIRECTORS
Chairman
Ryan Martin L. Tapia
Directors
Atty. Juan Paolo E. Colet
Roberto A. Cabusay

Chairman
Gilbert U. Dee

Independent Directors
Atty. Ma. Cecilia A. Gironella
Ariel A. Soner

Directors
Peter S. Dee
Ricardo R. Chua'HOƓQ-D\06DELGR,;Francis Andre Z. De Los Santos

Corporate Secretary
Atty. Steven Angelo C. Sy

Corporate Secretary
Atty. Rikki Daniele Louis A. Dela Paz

Assistant Corporate Secretary
Atty. Wilfred Francis B. Martinez

MANAGEMENT TEAMMANAGEMENT TEAM

PresidentPeter S. Dee

3UHVLGHQWDQG&KLHI([HFXWLYH2IƓFHU
Atty. Juan Paolo E. Colet

Treasurer'HOƓQ-D\06DELGR,;

Treasurer
Roberto A. Cabusay*HQHUDO0DQDJHUDQG&KLHI,QIRUPDWLRQ2IƓFHU
Francis Andre Z. De Los Santos&RPSOLDQFH2IƓFHU
Mary Grace M. Velasco

154

BOARD OF DIRECTORS

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT28F BDO Equitable Tower
8751 Paseo de Roxas, Makati City
Tel. No.: (632) 8885-5798
Resurgent Capital (FISTC-AMC) Inc. (RECAP) is a
special purpose subsidiary of Chinabank Capital. It wasincorporated on September 6, 2021, with the primary
purpose of investing in or acquiring non-performing
DVVHWVRIƓQDQFLDOLQVWLWXWLRQVDVFRQWHPSODWHGXQGHU
Republic Act No. 11523 or the Financial Institutions
Strategic Transfer (FIST) Act and its implementing rules
and regulations.
BOARD OF DIRECTORS
Chairman
Ryan Martin L. Tapia
Directors
Atty. Juan Paolo E. Colet
Lilian Yu
Rhodin Evan O. Escolar
Roberto A. Cabusay
Independent Directors
Margarita L. San Juan
Claire Ann T. Yap
Corporate Secretary
Atty. Steven Angelo C. Sy
Assistant Corporate Secretary
Atty. Wilfred Francis B. Martinez
MANAGEMENT TEAM
3UHVLGHQWDQG&KLHI([HFXWLYH2IƓFHU
Atty. Juan Paolo E. Colet
Treasurer
Roberto A. Cabusay&RPSOLDQFH2IƓFHU
Mary Grace M. Velasco$VVRFLDWH&RPSOLDQFH2IƓFHr
Juancho Jeff J. Uy)1(;7RZHU
6786 Ayala Avenue, Makati City
Customer Care: (632) 8884-7000
Domestic Toll-free: 1-800-1-888-6268
Email: phcustomercare@manulife.com
www.manulife-chinabank.com.ph
Manulife China Bank Life Assurance Corporation(MCBLife) is a strategic alliance between Manulife
Philippines and Chinabank. MCBLife provides a wide
range of innovative insurance products and services toChinabank and CBS customers. MCBLife aims to ensurethat every client receives the best possible solution
WRPHHWKLVRUKHULQGLYLGXDOƓQDQFLDODQGLQVXUDQFH
needs. In 2014, Chinabank raised its equity stake to
40% in MCBLife.
BOARD OF DIRECTORS
Chairperson
Sachin Shah
Director/President & CEO
Manulife
Rahul Hora
Director/President & CEO
MCBL
Neil Bowyer
Directors
Rahul Hora
Neil Bowyer
James Christian Dee
Patrick D. Cheng
Matthew Lawrence
Independent Directors
Janette L. Peña
Maria Theresa Quirino
Conrado Favorito

Chief Legal and&RPSOLDQFH2IƓFHU
Atty. Fritzie P.
Tangkia-Fabricante
MANAGEMENT TEAM
Head of Training
Mary Anne May Narciso
Bancassurance Strategy
Head
Jared Anthony N. Uichico
RBB Channel HeadJannette Paison-Domingo
RBB Channel Head
Jennifer Sanchez'DWD3ULYDF\2IƓFHU
Atty. Anna Elizza
Bustos-De Leon

Corporate Secretary
Atty. Abbiegail D. Sac
Assistant Corporate
Secretary
Atty. Mara Kristina Herrera
Treasurer and Controller
Edwin Magpantay

C HI NA BANK I NG COR P O R AT I O N

155Products andServices

2-6

PESO DEPOSITS
Checking AccountŘ &KLQD&KHFN3OXV
An affordable interest-bearing checking account thatcomes with an ATM card.
Savings AccountŘ $706DYLQJVAn interest-earning Peso-denominated savings accountthat comes with an ATM card.
Ř 0RQH\3OXV6DYLQJV $QDFFRXQWWKDWJLYHV\RXŴH[LELOLW\DQGOLTXLGLW\%XLOG
your account balance and be rewarded.
• Young Savers
An interest-earning savings account for children 17 years
old and below.
Time Deposit• Regular Time Deposit
For a low minimum placement, you can earn higher
interest than in a regular savings account.
• Diamond Savings Account $KLJK\LHOGƓ[HGWHUPGHSRVLWDFFRXQWHYLGHQFHGE\D
passbook.
Ř 0RQH\/LIW3OXV
 $\HDUWHUPGHSRVLWWKDWRIIHUVŴRDWLQJLQWHUHVWUDWHFOREIGN CURRENCY DEPOSITS
Savings• Foreign Currency Savings Account
A Passbook-based, low initial deposit and maintainingbalance savings deposit account offered in US Dollar,
Euro, Chinese Yuan, and Japanese Yen.
• Premium Savings Account
A Passbook-based savings account offered in US Dollar.
It optimizes your funds for better earnings and withmonthly crediting of interest.
Time Deposit• Foreign Currency Time Deposit Account
A time deposit account offered in US Dollar and EuroZKLFKFRPHVZLWKDFHUWLƓFDWHRIGHSRVLWDQGUHQHZDO
options.
DEPOSIT-RELATED SERVICES
Cash Card
A peso denominated re-loadable prepaid
card with no maintaining balance. Offers the convenience of an
ATM card without the need to open a deposit account.
SSS Pensioner’s AccountA savings account for SSS pensioners for the purpose of
FUHGLWLQJSHQVLRQVDQGRWKHU666EHQHƓWV156

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTGift Check
A thoughtful gift for weddings, birthdays, graduations, andother special occasions.
Manager’s Check
This is another way for clients to make payments where checks
are issued by the Bank in exchange for their cash or debit fromFXUUHQWVDYLQJVDFFRXQWŊWKHVHFKHFNVDUHDOVRFRQVLGHUHG
“good as cash”.
Demand Draft
A check issued by the Bank against its own account with ourcorrespondent banks for use of clients to transfer funds.
Safety Deposit Box)RUWKHVDIHNHHSLQJVWRUDJHRIYDOXDEOHVSRVVHVVLRQVDQG
other important documents under lock and key.
Night Depository Services
An overnight drop box service that allows accountholders,
usually small businesses, to makes deposits after regularbanking hours.
Cash Delivery and Deposit Pick-Up Services
A convenient deposit pick-up and cash delivery solution for
secure cash handling. Cash is transported via Bank armoured
car and all deposits are processed in a secure bank facility
where cash deposits are credited the same day.
ONLINE KABABAYAN SERVICES
International Remittance
Safe and affordable remittance service to the Philippines
through Chinabank’s remittance partners abroad. The
remittances may be credited to a Chinabank account or any
RWKHUEDQNDFFRXQWSLFNHGXSLQFDVKIURP&KLQDEDQN&%6
EUDQFKHVDQGSD\RXWSDUWQHUVRUGHOLYHUHGWRWKHEHQHƓFLDU\in cash.
Domestic Remittance
Safe, fast, and convenient way for Chinabank depositors to
VHQGFDVKWRWKHLUEHQHƓFLDULHVYLDFDVKSLFNXSIURPDQ\Chinabank branch or any M. Lhuillier or LBC branch, or via cash
delivery through the Pay to Cash service within the Chinabankmobile app.
Online Kababayan Savings (OKS) Account (PHP)
A Peso-denominated, no-initial deposit, and no maintaining
EDODQFHDFFRXQWIRU2YHUVHDV)LOLSLQRVDQGWKHLUEHQHƓFLDULHVWKDWPDNHVVDYLQJDQGVHQGLQJUHFHLYLQJUHPLWWDQFHVPRUH
secure and convenient.
Online Kababayan Savings (OKS) Account (USD)
A US dollar-denominated, lower initial deposit, and no
maintaining balance account for Overseas Filipinos and theirEHQHƓFLDULHVIRUDPRUHVHFXUHDQGFRQYHQLHQWZD\RIHDVLHUVHQGLQJUHFHLYLQJUHPLWWDQFHVLOANS AND CREDIT FACILITIESINTERNATIONAL BANKING

Omnibus LineA revolving master facility offered to borrowers with
subfacilities, including trade and loan lines that may be shared
ZLWKUHODWHGRUDIƓOLDWHGFRPSDQLHVLetter of Credit
An irrevocable written undertaking by the Issuing Bank
RQEHKDOIRIWKH$SSOLFDQWWRSD\WKH%HQHƓFLDU\DJDLQVW
presentation of complying documents as stipulated in thecredit.

Loan LineA revolving facility under which funds may be drawn, repaid
and re-drawn at any point within the loan tenor (usually
renewable on a yearly basis).
Term Loan$QRQUHYROYLQJIDFLOLW\WREHUHSDLGZLWKLQDVSHFLƓHGSHULRGA term loan may have single or multiple drawdowns, but once
repaid, the amounts cannot be re-drawn.
Trade FinanceIssuance of Trust Receipt and Letter of Credits (“LC”), includingStandby LC, Usance LC, Sight LC, or Cash LC, Import LC or
Export LC, and which could be revocable or irrevocable.
Factoring Receivable
A credit facility offered to institutions where the Bank purchases
WUDGHDFFRXQWUHFHLYDEOHVDWDGLVFRXQWHGUDWH
Consumer LoansŘ &KLQDEDQN+RPH3OXV
A loan for the purchase, construction, and renovation
RIUHVLGHQWLDOXQLWVUHƓQDQFLQJRIKRXVLQJORDQVZLWK
on- time payments, and reimbursement within a year ofpurchase.
Ř &KLQDEDQN$XWR3OXV
A loan for the purchase of brand QHZSUHRZQHGYHKLFOHVDQGŴHHWUHTXLUHPHQWVRI
companies and reimbursement of purchase cost of brandnew vehicles within 30 days from purchase date.
• Contract-to-Sell Facility
A Purchase of Receivables facility that is granted toeligible real estate developers for the purpose ofliquefying their receivables arising from their installment
sales covered by Contracts to Sell (CTS).
Credit Cards
Ř &KLQDEDQN:HDOWK0DVWHUFDUG
The premier card designed exclusively for WealthManagement clients offering luxurious experiences,
exceptional privileges, and personalized premium serviceEHƓWWLQJDQHOLWHOLIHVW\OHŘ &KLQDEDQN:RUOG0DVWHUFDUG
The total luxury card that provides world- class privilegessuch as access to a wide spectrum of lifestyle events,
global perks, VIP lounges, and personal concierge.
Ř &KLQDEDQN3ODWLQXP0DVWHUFDUG
The ultimate travel companion card that rewards
cardholders when they travel, shop, and dine anywhere in
the world.
Ř &KLQDEDQN3ULPH0DVWHUFDUG
The everyday card that elevates convenient cashless
spending through exciting perks, installment offers, andrewards.
Ř &KLQDEDQN&DVK5HZDUGV0DVWHUFDUG
The must-have card that allows cardholders to save as
they spend with up to 6% cash rebates.
Ř &KLQDEDQN)UHHGRP0DVWHUFDUG
The card that offers perpetual waiver on annual
membership fees with access to rewards and delightfuldeals.

Standby Letter of Credit
An irrevocable written undertaking by the Issuing Bank on
EHKDOIRIWKH$SSOLFDQWWRSD\WKH%HQHƓFLDU\LQFDVHWKH
Applicant defaults on performance of the agreement.
Shipping Guarantee
A document issued by a bank at the request of Applicant,addressed to the shipping line, requesting to release statedmerchandise to the importer in lieu of submission of theoriginal bill of lading upon arrival of goods.
Documents against Payment
A bank to bank transaction in which the exporter sends
documents to the Exporter’s bank with accompanying
instruction to release documents to the importer once payment
was received by the Importer’s bank.
Documents against Acceptance
A bank to bank transaction in which the exporter sends
documents to the Exporter’s bank with accompanying
instruction to release documents to the importer only upon
submission of signed bill of exchange payable at a future date.
Advance Payment
3D\PHQWVPDGHLQDGYDQFHE\WKHLPSRUWHUEX\HUWRWKH
H[SRUWHUVXSSOLHUSULRUWRUHFHLYLQJWKHJRRGVRUVHUYLFHV
Open AccountAn arrangement wherein the exporter directly sends the
documents to the importer and ships the merchandise forpayment at a future date (minimum of
30 days from shipment date).
Trust Receipt Loans
A document executed by an importer in favor of a bank toƓQDQFHDQLPSRUWWUDQVDFWLRQ
Export Bills Purchase
The Bank advances the receivables to the exporter at a
discount.
Export Collections
An arrangement wherein the Presenting Bank sends the
documents to the Collecting Bank on collection basis. Payment
to the Exporter is made upon receipt of proceeds from theImporter.
Customs and DutiesTax PaymentsCollection and remittance of taxes, duties and other levies tothe Bureau of Customs.
Advising of Letters of Credit and Standby Letters of Credit/HWWHUVRI&UHGLWDQGRU6WDQGE\/HWWHUVRI&UHGLWUHFHLYHGIURPthe Issuing Bank which are checked by the Advising Bank for its
DXWKHQWLFLW\DQGZRUNDELOLW\IRUIXUWKHUDGYLVHWRWKH%HQHƓFLDU\Purchase and Sale of Foreign Exchange%X\DQGRUVHOORIIRUHLJQH[FKDQJHWRVHUYLFHWUDGHDQGQRQ
trade requirements.

C HI NA BANK I NG COR P O R AT I O N

157Inward and Outward Remittance Service - Domestic andInternational
Send and receive money within the Philippines or to and fromother countries.
Foreign Currency Loans:RUNLQJFDSLWDOORDQVWRKHOSVWUHQJWKHQFDVKŴRZRUKHOSIXQG
day to day operations.
TRUST
Unit InvestmentTrust Fund (UITF)
Ř &KLQDEDQN0RQH\0DUNHW)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDPRQH\PDUNHWIXQGLQYHVWHGLQDGLYHUVLƓHGSRUWIROLRRIPDUNHWDEOHƓ[HG
income securities comprised of deposits, tradable money
market instruments, government securities, and corporate
bonds and notes. The Fund’s average duration is not morethan one year and caters to investors with moderate risk
appetite.
Ř &KLQDEDQN&DVK)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDPRQH\PDUNHW
fund, invested primarily in special savings deposits. The
Fund’s average duration is not more than one year andcaters to conservative investors.
Ř &KLQDEDQN6KRUW7HUP)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDPRQH\PDUNHWIXQGLQYHVWHGSULPDULO\LQDGLYHUVLƓHGSRUWIROLRRI
PDUNHWDEOHƓQDQFLDOLQVWUXPHQWVLQFOXGLQJGHSRVLWVmoney market instruments, government securities, and
FRUSRUDWHERQGVQRWHVDQGSUHIHUUHGVKDUHVRIVWRFNFODVVLƓHGDVGHEW 7KH)XQGōVDYHUDJHGXUDWLRQLVQRW
more than one year and caters to moderate investors.
Ř &KLQDEDQN,QWHUPHGLDWH)L[HG,QFRPH)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDQLQWHUPHGLDWH
ERQGIXQGLQYHVWHGSULPDULO\LQDGLYHUVLƓHGSRUWIROLRRIKLJKJUDGHPDUNHWDEOHƓ[HGLQFRPHVHFXULWLHVFRPSULVHG
of deposits, tradable money market instruments,
government securities, corporate bonds and notes and
SUHIHUUHGVKDUHVRIVWRFN FODVVLƓHGDVGHEW 7KH)XQGōVaverage duration is not more than three years and caters toinvestors with moderate risk appetite.
Ř &KLQDEDQN)L[HG,QFRPH)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDORQJWHUPERQGIXQGLQYHVWHGSULPDULO\LQDGLYHUVLƓHGSRUWIROLRRIKLJKJUDGHPDUNHWDEOHƓ[HGLQFRPHVHFXULWLHVVXFKas government securities, tradable corporate bonds andnotes of varying tenors, as well as bank deposits andmoney market placements. The Fund’s average duration
is not more than ten years and caters to investors withmoderate risk appetite.
Ř &KLQDEDQN%DODQFHG)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDEDODQFHGIXQGLQYHVWHGLQDGLYHUVLƓHGSRUWIROLRRIKLJKJUDGH
WUDGDEOHƓ[HGLQFRPHVHFXULWLHVLVVXHGE\WKH3KLOLSSLQH
government and local corporations, and choice equity
issues listed in the Philippine Stock Exchange(PSE). The equity component of the Fund shall not exceed
60% of the portfolio at any given time with an average
GXUDWLRQRIQRWPRUHWKDQWHQ\HDUVIRUWKHƓ[HGLQFRPH
investments. The Fund caters to aggressive investors.
Ř&KLQDEDQN(TXLW\)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDQHTXLW\IXQG
LQYHVWHGLQDGLYHUVLƓHGSRUWIROLRRIFKRLFHHTXLW\LVVXHV
listed in the PSE. The Fund caters to aggressive investors
with its equity component not exceeding 95% of theportfolio at any given time.
Ř &KLQDEDQN+LJK'LYLGHQG(TXLW\)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDQHTXLW\IXQG
LQYHVWHGLQDGLYHUVLƓHGSRUWIROLRRIFKRLFHFRPPRQDQG

158

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

preferred equity issues listed in the PSE which have regular
GLYLGHQGSD\PHQWSROLF\DQGRUGLYLGHQGSD\PHQWWUDFN
record. The Fund caters to aggressive investors with its
equity component not exceeding 95% of the portfolio
at any given time.
Ř &KLQDEDQN'ROODU)XQG
 $86'ROODUGHQRPLQDWHG8,7)FODVVLƓHGDVDORQJWHUPERQGIXQGLQYHVWHGSULPDULO\LQDGLYHUVLƓHGSRUWIROLR
of high- grade marketable securities comprised mainlyof Philippine sovereign bonds and US treasury bonds ofvarying tenors. The Fund’s average duration is not morethan ten years and caters to investors with moderate risk
appetite.
Ř &KLQDEDQN'ROODU&DVK)XQG
 $86'ROODUGHQRPLQDWHG8,7)FODVVLƓHGDVDPRQH\
PDUNHWIXQGLQYHVWHGLQƓ[HGLQFRPHVHFXULWLHVPRVWO\time deposits, special savings accounts and government
securities. The Fund’s average duration is not more than
one year and caters to conservative investors.
Ř &KLQDEDQN3KLOLSSLQH(TXLW\,QGH[7UDFNHU)XQG
 $3HVRGHQRPLQDWHG8,7)FODVVLƓHGDVDQHTXLW\LQGH[WUDFNHUIXQGLQYHVWHGLQDGLYHUVLƓHGSRUWIROLRRIVWRFNV
representative of the Philippine Stock Exchange Index(PSEi) composition and its corresponding weights.
The Fund caters to aggressive investors and aims to mirror
the returns of its benchmark, the PSEi.
Investment Management Arrangement
Chinabanking Corporation-Trust and Asset Management Group(CBC-TAMG) handles the administration and investment of funds
and assets of an individual in order to meet his objectives.
The arrangement may be discretionary wherein CBC-TAMG has
full authority to make investment decisions based on pre-agreed
investment guidelines, or non- discretionary wherein investment
decisions require prior client consent.
Personal Management Trust
A living trust arrangement wherein CBC- TAMG acts as atrustee to manage the client’s wealth or estate, generally for
WKHSUHVHUYDWLRQRIDVVHWVSURSHUWLHVIRUIXWXUHXVHRIWKH
EHQHƓFLDULHVZKLFKPD\RUPD\QRWEHDWKLUGSDUW\DQGRU
to answer for current needs. CBC-TAMG shall ensure fair andequitable distribution of wealth in accordance with the client’s
ZLVKHVDQGGHƓQHGLQVWUXFWLRQVEscrow Services Arrangement
An arrangement wherein CBC-TAMG acts as an independent
third party or an escrow agent to safeguard the interest of theparties to a transaction on assets, documents or funds while
WKHWHUPVDQGFRQGLWLRQVRIWKHFRQWUDFWDUHEHLQJIXOƓOOHG7KH
following types of escrow services are available: CGT, Buy & Sell,
POEA, DHSUD, and PAGCOR.
(PSOR\HH%HQHƓW)XQG0DQDJHPHQW
A cost-effective corporate arrangement where CBC-TAMG helps
WKHFRPSDQ\VHWXSDQGPDQDJHLWVUHWLUHPHQWIXQGWREHQHƓWLWVHPSOR\HHVDYRLGXQQHFHVVDU\FDVKŴRZGLVUXSWLRQVEURXJKWDERXWE\SD\PHQWRIUHWLUHPHQWEHQHƓWVDQGDYDLORISRVVLEOH
tax savings.
Corporate Fund Management
CBC-TAMG acts as an Investment Manager authorized toadminister the funds of a corporation in accordance withpre-agreed investment guidelines based on the company’s
objectives, liquidity requirements, yield expectation, and risk
tolerance. The arrangement may either be discretionary or nondiscretionary.

Facility Agency Arrangement
CBC-TAMG acts as a liaison between a corporate borrower anda group of lenders to primarily ensure compliance by the parties
with all the terms and conditions in syndicated loan facilities.
The arrangement may also cover receipt from and disbursementof loan payments to the parties, dissemination of notices andinformation to all concerned, and coordination of creditors’
meetings, among others.

staged in the Chinabank Mobile App), balance inquiry, bills
payment, funds transfer, and more. Selected Chinabank ATMs
are also equipped for beepTM card reloading and load balance
inquiry.

Security Trusteeship Arrangement
CBC-TAMG acts as a trustee over the properties or assets offered
as collateral or are the subject of mortgage in favor of a syndicate
of creditors. The arrangement may include the monitoring of
required collateral value, custodianship of security documents
such as agreements, titles to properties, and insurance policies.

Chinabank TellerPhone
A phone banking facility that allows customers to performbanking transactions via landline or mobile phone.

Collecting and Paying Agency Arrangement
CBC-TAMG facilitates the collection of payment and prompt
disbursement of amounts due to a syndicate of lenders.
TREASURY
Investments• Local currency-denominated Government and Corporate%RQG,VVXHVDQG3HUSHWXDO1RWHV
Peso-denominated debt Instruments issued by the National*RYHUQPHQWRUVHOHFWFRUSRUDWHHQWLWLHVZLWKƓ[HGLQWHUHVWUDWHVSDLGTXDUWHUO\RUVHPLDQQXDOO\VXEMHFWWRƓQDO
withholding tax.
• Foreign currency denominated Government and Corporate%RQG,VVXHVDQG3HUSHWXDO1RWHVForeign currency-denominated (US Dollar, Euro, JapaneseYen, Chinese Renminbi) debt Instruments issued by thePhilippine National Government, other sovereign entities,
RUVHOHFWORFDODQGIRUHLJQ&RUSRUDWHHQWLWLHVZLWKƓ[HGinterest rates paid semi-annually.
Ř &KLQDEDQN%RQG
Peso-denominated debt instruments issued by&KLQDEDQNLQJ&RUSRUDWLRQZLWKƓ[HGLQWHUHVWUDWHSDLGPRQWKO\VXEMHFWWRƓQDOZLWKKROGLQJWD[Deposits and Deposit Substitutes
Ř /RQJ7HUP1HJRWLDEOH&HUWLƓFDWHRI'HSRVLW /71&'
 /71&'LVVXHGE\WKH%DQNZLWKDWHQRURIDWOHDVWƓYH\HDUVwith quarterly interest payments; available in Philippine
Peso.
Ř 7UHDVXU\&HUWLƓFDWHRI'HSRVLW 7&'
Short term deposits (overnight to one year) evidenced by
DFHUWLƓFDWHRIGHSRVLWDYDLODEOHLQ3KLOLSSLQH3HVR86
Dollar or Euro.
• Promissory Note
Short term deposits substitute (overnight to one year)
HYLGHQFHGE\D31&HUWLƓFDWHDYDLODEOHLQ3KLOLSSLQH3HVR
not covered by PDIC.
Foreign Exchange & Derivatives• Foreign Exchange 6SRW)RUZDUGDQG);6ZDSVDQDJUHHPHQWWREX\VHOO
a currency for another currency.
• Derivatives
Interest Rate and Cross Currency Swaps - a bilateral
DJUHHPHQWWRH[FKDQJHSHULRGLFFDVKŴRZVIRUDVSHFLƓF
period of time, based on an agreed notional amount.
PAYMENT & SETTLEMENT
Chinabank Automated Teller Machine (ATM)
6HOIVHUYLFHWHUPLQDOWKDWSURYLGHVEDQNLQJVHUYLFHVOLNH
FDVKZLWKGUDZDO LQFOXGLQJFDUGOHVVŊIXOƓOOPHQWRIWUDQVDFWLRQV

Chinabank Cash Accept Machine (CAM)
Deposit-taking terminal that facilitates cardless transaction andreal-time crediting of deposits to a Chinabank account.

Chinabank Online
An internet-based banking channel that provides customers
direct access to their accounts via their personal computer,laptop, tablet, or mobile phone to do various banking
transactions.
Chinabank Mobile Banking App
A free mobile application downloadable from the App Storeand Google Play that enables customers to securely access their
Chinabank accounts and bank on the go. The App has unique
IHDWXUHVOLNH5),'UHORDGLQJ(PHUJHQF\&DVK1RFDUG2Q
Withdrawal (NOW) for cardless withdrawal thru Chinabank ATMs,
3D\7R0RELOH-XVW8VH\RXU0RELOH3KRQH -803 IRUIXQG
transfers to anyone using only the recipient’s mobile number,
Shake to Scan for easy fund transfers via QR, and more.
Point-Of-Sale (POS)
A local PIN-based payments solution using a POS terminal thatallows ATM cardholders to use their cards as payment for goods
or services in select stores.
CASH MANAGEMENT
Chinabank Online Corporate
An internet-based banking channel for the business banking
needs of corporate customers. Chinabank Online Corporate
securely facilitates basic banking services, self-service
functionalities, and Cash Management Solutions.
Liquidity Management via Chinabank Online Corporate• Sure Sweep
 (QDEOHVIDVWHUDQGPRUHHIƓFLHQWFRQVROLGDWLRQRU
distribution of funds for easier disbursement and better
yields.
Ř &RUSRUDWH,QWHU%DQN)XQG7UDQVIHUTransfer funds online and real-time from your Chinabankaccount to accounts in other banks.
Ř0XOWL%DQN62$&RQFHQWUDWLRQAccess account balances, transaction reports, and accountstatements of your Chinabank accounts and other bankaccounts.
Receivables Management• Automatic Debit Arrangement (ADA)
Electronically initiate collections from customers’ or
subscribers’ enrolled deposit accounts.
Ř &KHFN'HSRW
Enjoy the convenience of automatic crediting of postdated checks (PDCs) as they fall due.
Ř %LOOV3D\3OXV
Provide your customers with convenient payment options
through Chinabank’s vast network of branches nationwide
DQGHOHFWURQLFEDQNLQJFKDQQHOV• Referenced Deposit Solution
Provide your customers with convenient payment options,while making use of a deposit reference number, throughC HI NA BANK I NG COR P O R AT I O N

159Chinabank’s vast network of branches nationwide.
• Smart Cash Safe Solution
 'HSRVLWFDVKYLDDFDVKDFFHSWLQJPDFKLQHLQVWDOOHG
in your premises.
Payables Management• Direct Debit Arrangement
Manage your recurring payments to select utility
companies via direct debit from your Chinabank account.
• Auto Credit Arrangement (ACA) Electronically remit
same day or future dated payment instructions to the
Chinabank accounts of your payees.
Ř &KHFN:ULWLQJ6HUYLFHVFree your company of the tedious task of manually
preparing a large number of checks.
R &KHFN:ULWHSOXV6RIWZDUe - a stand-alone solution that
automatates the preparation of checks, vouchers, andreports
R &KHFN:ULWH3OXV2XWVRXUFLQJ Outsource the printing
and releasing of your corporate checks or Chinabankmanager’s checks.
R &KHFN:ULWH3OXV6HOI6HUYLFH A web-based solutionthat automates the preparation of checks, vouchers,
and reports.
• Payroll Services
Reduce administrative and manual processes involved
with paying your employee’s salaries.
o Payroll Crediting - A web-based alone solution that
automates the preparation of checks, vouchers,
and reports.
o Payroll Processing - Outsource your entire payroll
activity, from the calculation of gross salary based on
attendance report up to generation of net pay, pay
slips, internal and statutory reports.
o China Pay Software - A stand-alone payroll &timekeeping program that automates salarycomputation and pay slip and report generation.
o Payroll 2.0 – a fully digital and cloud- based payroll
processing solution accessible via web or mobile app.
POS Solutions• Debit POS
 (TXLS\RXUEXVLQHVVZLWKWKHŴH[LELOLW\WRDFFHSW$70DQG
debit card payments.
• POS Cash Out
Provide your customers with the convenience of cash
withdrawals via a POS device, and at the same time, havean additional income channel.
Trade and Settlement Solutions• 6&&3%URNHUōV6ROXWLRQ
Settle stock transactions with the Securities Clearing
Corporation of the Philippines via an electronic platform.
This solution facilitates net settlement of daily stock tradeDPRQJVWRFNEURNHUDJHƓUPVRIWKH36(• Electronic Invoicing & Payment Solution (Available Soon)
Reduce the time and cost of processing invoices. Thissolution automates and streamlines the presentation,
UHFRQFLOLDWLRQDQGVHWWOHPHQWRIHOHFWURQLFLQYRLFHV
receivables.
Government Payments and Collections• Easy Tax Filing and Payment Solution(OHFWURQLFDOO\ƓOHand pay real property taxes.
• Tax Payment Solution
File and pay Bureau of Internal Revenue (BIR) taxes.

160

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT• eGov Payments
File and pay monthly contributions and loan payments toSocial Security System (SSS), Philippine Health Insurance
Corporation (PhilHealth), and Pag-IBIG.
• 6666LFNQHVV0DWHUQLW\DQG(PSOR\HH&RPSHQVDWLRQ
66660(&Receive the SSS sickness, maternity and compensationEHQHƓWUHLPEXUVHPHQWVRI\RXUHPSOR\HHVYLDGLUHFWcredit to your company’s Chinabank account.
INVESTMENT BANKING (CHINABANK CAPITAL)
Equity Capital Markets
Originates, structures, executes, and distributes equity andequity-linked solutions for corporate clients, including initialpublic offerings, follow on offerings, stock right offerings,
preferred shares, and convertibles.
Debt Capital Markets$VVLVWVFRUSRUDWHFOLHQWVƓQDQFLDOLQVWLWXWLRQVDQGWKH
government access various sources of capital through debt
ƓQDQFLQJSURGXFWVLQFOXGLQJFRUSRUDWHQRWHVUHWDLOERQGVcommercial papers and promissory notes.
Loans, Project Finance, and Structured Finance$GYLVHVDQGZRUNVZLWKFOLHQWVZLWKFRPSOH[ƓQDQFLQJ
solutions to support a diverse range of purposes, projects, andtransaction.
Advisory
Advises clients on mergers and acquisitions, divestitures,
joint ventures, valuation, securitizations, tender offers, sharebuybacks, and other corporate transactions.
STOCK BROKERAGE (CHINABANK SECURITIES)
Trading AccountTrader-assisted trading of stocks listed at the Philippine Stock
Exchange (PSE), covering peso and dollar-denominatedsecurities.
Online Trading• &KLQD%DQN6HF2QOLQH
Take the lead when buying and selling PSE-listed stocks
with ChinaBankSec Online. Easily open an online trading
account online, access your account using multiple
devices, and get access to top-notch trading tools andservices.
Ř &KLQD%DQN6HF$OSKD
For the active and more sophisticated stock investor, gain
access to more advanced trading tools and information,
feel the market, pick the right stocks and do conditional
trades.
Research Services
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162

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT

WealthŘ 0&%/:HDOWK2QH
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for accidental death plus Php 10,000 worth of medical
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your employees.
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TopicBoundary

Index
Our Capital
Financial and
Manufactured

Topic
Direct Economic Value Generated and Distributed
Contribution to the SDGsIntellectual

Leveraging Technology, Innovating for the Future
Chinabank Digital
Business Solutions

Boundary

Disclosure Reference

Business Operations,Customers, Employees,
Shareholders, Suppliers,
Communities, Government and Regulators

GRI 3-3, 201-1

Business Operations,Customers, Employees,
Regulators

GRI 3-3

GRI 3-3, 203-1, 203-2
SASB FN-CB-240a.1
SASB FN-CB-240a.4

Data 360
Move to the Cloud*HQHUDWLYH$UWLƓFLDO,QWHOOLJHQFH
Cybersecurity
HumanSocial and
Relationship

Forging Ahead with A Strong TeamGRI 3-3, 418-1
SASB FN-CB-230a.1
SASB FN-CB-230a.2
Employees

GRI 3-3, 2-7, 2-8

Diversity and Inclusion

GRI 3-3, 405-1, 406-1

Recruitment

GRI 3-3, 401-1

Remuneration

GRI 201-3, 401-2, 401-3

Collective Bargaining Agreement

GRI 2-30

Training

GRI 3-3, 2-4, 404-1, 404-2

Career Advancement and Succession

GRI 404-3

Engagement and Retention

GRI 2-25, 401-1

Health and Safety

GRI 3-3, 403-1, 403-2, 403-6,
403-7, 403-8

Protecting Consumer Rights
Information
Data Privacy

Business Operations,
GRI 3-3, 418-1
Customers, Employees,
SASB FN-CB-230a.2
Communities, Regulators

Consumer Assistance
Embracing Corporate Social Responsibility

GRI 3-3, 413-1
SASB FN-CB-240a.4

Financial Literacy
Brigada Eskwela
National Teachers’ Day
Community Outreach
Environmental Preservation
NaturalManaging Our Environmental Impact
Fuel Consumption

Business Operations andEmployees

GRI 3-3
GRI 302-1, 305-1(OHFWULFLW\&RQVXPSWLRQDQG,QGLUHFW(PLVVLRQb

GRI 302-1, 305-2:DWHU&RQVXPSWLRQb

GRI 303-5

C HI NA BANK I NG COR P O R AT I O N

163

GRI Content Index
Statement of use

China Banking Corporation has reported in accordance with the GRI Standards
for the period of January 1, 2023 to December 31, 2023.

For the Content Index – Essentials Service, GRI Services reviewed that the GRI content index has been presented in a way consistent withthe requirements for reporting in accordance with the GRI Sustainability Reporting Standards, and that the information in the index isclearly presented and accessible to the stakeholders.

GRI Standards
GRI 1 used:

Disclosure
GRI 1 Foundation 2021

Page Number and/or
Direct Answers and Omissions
NA

General Disclosures
GRI 2: General
Disclosures 2021

The organization and its reporting practices
2-1

Organizational details

4-7

2-2

Entities included in the organization's sustainability
reporting

4-7

2-3

Reporting period, frequency and contact point2

2-4

Restatements of information

No restatements for this year

2-5

External assurance

No external assurance has been
provided for the report

Activities and workers
2-6

Activities, value chain, and other business relationships

4-7, 8-11, 12-13, 77-80, 152-157

2-7

Employees

42-47

2-8

Workers who are not employees

42

Governance

164

2-9

Governance structure and composition

65-67, 73-74

2-10

Nomination and selection of the highest governance
body

69

2-11

Chair of the highest governance body

73-74

2-12

Role of the highest governance body in overseeing themanagement of impacts

65-67, 73-74

2-13

Delegation of responsibility for managing impacts

73-74

2-14

Role of the highest governance body in sustainability
reporting

31

2-15

&RQŴLFWVRILQWHUHVW

77

2-16

Communication of critical concerns

77-80

2-17

Collective knowledge of the highest governance body

71

2-18

Evaluation of the performance of the highest
governance body

72

2-19

Remuneration policies

71, 772-20

Process to determine remuneration&RQƓGHQWLDOLW\FRQVWUDLQWV
While the bank believes thatits process for determining
remuneration is appropriate,
it is constrained to disclose its
process.

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTGRI Standards

Disclosure
2-21

Annual total compensation ratio

Page Number and/or
Direct Answers and Omissions&RQƓGHQWLDOLW\FRQVWUDLQWV
While the bank believes that its
annual total compensation ratio
is appropriate, it is constrained
to disclose the ratio.

Strategy, policies and practices
2-22Statement on sustainable development strategy

8-11, 32

2-23

Policy commitments

4-7, 32, 77-80

2-24

Embedding policy commitments

31

2-25

Processes to remediate negative impacts

33, 462-26

Mechanisms for seeking advice and raising concerns

33

2-27

Compliance with laws and regulations&RQƓGHQWLDOLW\FRQVWUDLQWV
While the bank is not subject
WRDQ\VLJQLƓFDQWƓQHVRU
non-monetary sanctions, it isconstrained to disclose thenumber of pending discussions.

2-28

Membership associations

166

Stakeholder engagement
2-29

Approach to stakeholder engagement33, 128-151

2-30

Collective bargaining agreements

45

3-1

Process to determine material topics

2, 34

3-2

List of material topics

34

GRI 3: Material Topics 2021

3-3Management of material topics

47

GRI 403: Occupational
Health And Safety 2018403-1

Occupational health and safety management system

47

403-2

+D]DUGLGHQWLƓFDWLRQULVNDVVHVVPHQWDQGLQFLGHQW
investigation

47

403-3

Worker training on occupational health and safety

47

403-6

Promotion of worker health

47

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

47

403-8

Workers covered by an occupational health and safety
management system

47

3-3

Management of material topics

66

2-22

Statement on sustainable development strategy

8-11, 32

2-23

Policy commitments

4-7, 32, 77-80

2-24

Embedding policy commitments

31

2-25

Processes to remediate negative impacts

33, 462-26

Mechanisms for seeking advice and raising concerns

33

3-3

Management of material topics

66

Material Topics
GRI 3: Material Topics 2021
Health and Safety

Business Ethics
GRI 3: Material
Topics 2021

GRI 2: General
Disclosures 2021

Corporate Governance
GRI 3: Material
Topics 2021

GRI 2: General
Disclosures 2021

2-9

Governance structure and composition

65-67, 73-74

2-10

Nomination and selection of the highest governance
body

69

2-11

Chair of the highest governance body

73-74

2-12

Role of the highest governance body in overseeing themanagement of impacts

65-67, 73-74

C HI NA BANK I NG COR P O R AT I O N

165

GRI Standards

Disclosure

Page Number and/or
Direct Answers and Omissions

Talent Attraction and Retention*5,0DWHULDO7RSLFV
*5,(PSOR\PHQW

3-3

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401-1

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401-2%HQHƓWVSURYLGHGWRIXOOWLPHHPSOR\HHVWKDWDUHQRWSURYLGHGWRWHPSRUDU\RUSDUWWLPHHPSOR\HHV

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401-3

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3-3

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205-1

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418-1

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3-3

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413-1

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3-3

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plans

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203-2

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Digitalization

Labor Standards

Training and Education

Innovation

Economic Performance

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305-2

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RI%DQN5HPLWWDQFH2IƓFHUV,QF$VVRFLDWLRQRI3KLOLSSLQH&RUUHVSRQGHQW%DQNLQJ2IƓFHUV,QF%DQNHUVō$VVRFLDWLRQRIWKH3KLOLSSLQHV%DQNHUVō,QVWLWXWHRIWKH3KLOLSSLQHV,QF%DQN0DUNHWLQJ$VVRFLDWLRQRIWKH3KLOLSSLQHV%XVLQHVV&RQWLQXLW\0DQDJHUV$VVRFLDWLRQRIWKH3KLOLSSLQHV&KDPEHURI7KULIW%DQNV&UHGLW&DUG$VVRFLDWLRQRIWKH3KLOLSSLQHV&UHGLW0DQDJHPHQW$VVRFLDWLRQRIWKH3KLOLSSLQHV)LQDQFLDO([HFXWLYHVRIWKH3KLOLSSLQHV)XQG0DQDJHUV$VVRFLDWLRQRIWKH3KLOLSSLQHV*RRG*RYHUQDQFH$GYRFDWHVDQG3UDFWLWLRQHUVRIWKH3KLOLSSLQHV,QIRUPDWLRQ6HFXULW\2IƓFHUV*URXS,QYHVWPHQW+RXVH$VVRFLDWLRQRIWKH3KLOLSSLQHV0RQH\0DUNHW$VVRFLDWLRQRIWKH3KLOLSSLQHV3HUVRQQHO0DQDJHPHQW$VVRFLDWLRQ3KLOLSSLQH$VVRFLDWLRQRI1DWLRQDO$GYHUWLVHUV3KLOLSSLQH3D\PHQWV0DQDJHPHQW,QF3XEOLF5HODWLRQV
6RFLHW\RIWKH3KLOLSSLQHV7UXVW2IƓFHUV$VVRFLDWLRQRIWKH3KLOLSSLQHV81,6'53ULYDWH6HFWRU$OOLDQFHIRU'LVDVWHU
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166

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORTSASB Content Index
Topic
Data Security

Financial Inclusion andCapacity Building

Accounting Metric

Code

Page Numbers(1) Number of data breaches(2) percentage that are personal data breaches(3) number of account holders affected

FN-CB-230a.1

1RVLJQLƓFDQWGDWD
privacy breach recorded

Description of approach to identifying andaddressing data security risks

FN-CB-230a.2

Pages 49, 53(1) Number and (2) amount of loans
outstanding that qualify for programmes
designed to promote small business andcommunity development

FN-CB-240a.1

Pages 38-41(1) Number and (2) amount of past due
and nonaccrual loans or loans subject toforbearance that qualify for programmes
designed to promote small business andcommunity development

FN-CB-240a.2

Not disclosed

Number of no-cost retail checking accounts
provided to previously unbanked orunderbanked customers

FN-CB-240a.3

Not disclosed

1XPEHURISDUWLFLSDQWVLQƓQDQFLDOOLWHUDF\initiatives for unbanked, underbanked, or
underserved customers

FN-CB-240a.4

Page 39, 54

FN-CB-410a.2

Pages 59-61

Incorporation ofEnvironmental, Social, andGovernance Factors in Credit
Analysis

Description of approach to incorporation ofenvironmental, social, and governance (ESG)
factors in credit analysis

Financed Emissions$EVROXWHJURVVƓQDQFHGHPLVVLRQVdisaggregated by (1) Scope 1, (2) Scope 2 and(3) Scope 3

FN-CB-410b.1

Not disclosed

Gross exposure for each industry by asset class

FN-CB-410b.2

Not disclosed

Percentage of gross exposure included in theƓQDQFHGHPLVVLRQVFDOFXODWLRQ

FN-CB-410b.3

Not disclosed

Description of the methodology used to
FDOFXODWHƓQDQFHGHPLVVLRQVFN-CB-410b.4

Not disclosed

Total amount of monetary losses as a resultof legal proceedings associated with fraud,insider trading, antitrust, anticompetitive
behaviour, market manipulation, malpractice,
RURWKHUUHODWHGƓQDQFLDOLQGXVWU\ODZVRU
regulations

FN-CB-510a.1

Pages 100-109

Description of whistleblower policies andprocedures

FN-CB-510a.2

Page 79

Global Systemically Important Bank (G-SIB)
score, by category

FN-CB-550a.1

Not applicable

FN-CB-550a.2

Pages 82-84,
100-109

Business Ethics

Systemic Risk Management

Description of approach to incorporationof results of mandatory and voluntary stresstests into capital adequacy planning, longterm corporate strategy, and other businessactivities

C HI NA BANK I NG COR P O R AT I O N

167

Investor

Information

ANNUAL STOCKHOLDERS’ MEETINGCUSTOMER INFORMATION'DWH$SULOb
Time: 4:00 p.m.
Place: Penthouse, Chinabank Building, 8745 Paseo deRoxas corner Villar St., Makati and virtually via Zoom
DIWHUUHJLVWUDWLRQDWbKWWSVZZZFKLQDEDQNSKDVPbb

We welcome letters or all such communications on matterspertaining to the management of the Bank, stockholders’rights, or any other bank-related issues of importance.
Stockholders who wish to communicate with any or all of
the members of the Chinabank Board of Directors may send
OHWWHUVWRb

SHAREHOLDER SERVICES
For inquiries or concerns regarding dividend payments,
account status, change of address or lost or damaged stockFHUWLƓFDWHVSOHDVHJHWLQWRXFKZLWKStocks and External Relations2IƓFHRIWKH&RUSRUDWH6HFUHWDU\China Banking Corporation)&KLQDEDQN%XLOGLQJ
8745 Paseo de Roxas cor. Villar St.
Makati City 1226, Philippines
Contact persons:Atty. Wilfred Francis B. Martinez
Atty. Steven Angelo C. Sy
Jaime G. Dela Cruz
Tel. No.: (+632) 8230-6987; 8885-6890; 8885-5135
Fax No.: (+632) 8403-5813
Email:
wfbmartinez@chinabank.phsacsy@chinabank.phocsstocks@chinabank.ph
Stock Transfer Service, Inc.
8QLW'5XƓQR3DFLƓF7RZHU
6784 Ayala Ave.
Makati City 1226, Philippines
Contact persons:Antonio M. Laviña
Ricardo D. Regala, Jr.
Tel. Nos.: (+632) 8403-2410; 8403-2412; 5310-3671
Fax No.: (+632) 8403-2414
INVESTOR INQUIRIES
We welcome inquiries from investors, analysts, and theƓQDQFLDOFRPPXQLW\)RULQIRUPDWLRQDERXWWKHGHYHORSPHQWV
DW&KLQDEDQNSOHDVHFRQWDFWb*HUDOG2)ORUHQWLQRbFirst Vice President and Head,QYHVWRU &RUSRUDWH5HODWLRQV*URXSb&KLQD%DQNLQJ&RUSRUDWLRQb)%'2(TXLWDEOH7RZHU3DVHRGH5R[DVb
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168

20 2 3 ANNUAL FINANCIAL AND SUSTAINABILIT Y REPORT$WW\/HLODQL%(ODUPRb
9LFH3UHVLGHQWDQG&RUSRUDWH6HFUHWDU\b&KLQD%DQNLQJ&RUSRUDWLRQb)&KLQDEDQN%XLOGLQJ3DVHRGH5R[DVFRU9LOODU6Wb
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CUSTOMER ASSISTANCE CHANNELS
Aside from Chinabank branches nationwide, our customers
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Customer Contact Center Hotline
Metro Manila: 888-55-888'RPHVWLFb7ROO)UHH 3/'7 b
International Toll-free: Visit www.chinabank.ph for the list
RIFRXQWULHVDQGWROOIUHHQXPEHUVb
Emailonline@chinabank.phViber+639178814263
Social media: Facebook, X (Twitter), Instagram@chinabankph
Mail
Customer Contact Center, Chinabank Building,3DVHRGH5R[DVFRUQHU9LOODU6Wb
Makati City 1226 Philippines

POST-CONSUMER RECOVERED FIBER
The cover of this Chinabank Annual Financial & Sustainability Report is printed on
Toccata White 270 gsm. The timeless touch and high print rendering of Toccata paper
brings out the best in the design and adds another dimension of beauty, giving bright andYLYLGOLIHWRFRORUV7KHSDSHULVFHUWLƓHGE\WKH)RUHVW6WHZDUGVKLS&RXQFLO )6& ZKLFKSURPRWHVHQYLURQPHQWDOO\DSSURSULDWHVRFLDOO\EHQHƓFLDODQGHFRQRPLFDOO\viable management of the world's forest.
The inside pages are printed on Magno Plus Silk White 100 gsm, a PEFC Credit
PDWHULDODQG)6&0L[&UHGLWPDWHULDOFHUWLƓHGSURGXFWPDGHIURP(XURSHDQPLOOVBy optimizing the use of natural resources, this product achieves environmental
sustainability while keeping the highest quality.
C HI NA BANK I NG COR P O R AT I O N

169

CHINA BANKING CORPORATION

Chinabank Building, 8745 Paseo de Roxas
corner Villar Street, Makati City 1226 Philippines

Notes to

Financial

Statements

China Banking Corporation And Subsidiaries
Notes To Financial Statements
CHINA BANKING CORPORATION AND SUBSIDIARIESNOTES TO FINANCIAL STATEMENTS

1. Corporate Information
China Banking Corporation (the Parent Company) is a publicly listed universal bank incorporated in thePhilippines. The Parent Company acquired its universal banking license in 1991. It provides expanded
commercial banking products and services such as deposit products, loans and trade finance, domestic
and foreign fund transfers, treasury products, trust products, foreign exchange, corporate financeand other investment banking services through a network of 480 and 479 local branches as ofDecember 31, 2023 and 2022, respectively.
The Parent Company acquired its original Certification of Incorporation issued by the Securities andExchange Commission (SEC) on July 20, 1920. By virtue of Section 11 of Republic Act No. 11232 also
known as the <Revised Corporation Code of the Philippines,= which took effect on February 23, 2019,
the Parent Company has a perpetual existence.
The Parent Company has the following subsidiaries:
Effective Percentages of
Ownership
Subsidiary
Chinabank Insurance Brokers, Inc.
(CIBI)CBC Properties and Computer Center,
Inc. (CBC-PCCI)
China Bank Savings, Inc. (CBSI)

2023

Country ofIncorporation
and Place of2022 Business

Principal Activities

100.00%100.00% Philippines

Insurance brokerage

100.00%99.64%

100.00% Philippines
99.60% Philippines

China Bank Capital Corporation(CBCC)CBC Assets One (SPC) Inc.

100.00%100.00% Philippines

Computer services
Retail and consumer
banking
Investment house

100.00%100.00% Philippines

China Bank Securities Corporation(CBCSec)
Resurgent Capital (FIST-AMC) Inc,*

100.00%100.00% Philippines

Special purpose
corporation
Stock brokerage

100.00%100.00% Philippines

FIST Corporation

The Parent Company has no ultimate parent company. SM Investments Corporation, its significant
investor, has effective ownership in the Parent Company of 22.51% as of December 31, 2023 and 2022.
The Parent Company9s principal place of business is at 8745 Paseo de Roxas cor. Villar St., Makati City.

*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

1

2
2.

mmar ofateriao ntinoi

Information

The material accounting policy information that have been used in the preparation of these financial
statements are summari ed below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
Basis of Preparation
The accompanying consolidated financial statements include the financial statements of the Parent
Company and its subsidiaries (collectively referred to as <the roup=).
The accompanying financial statements have been prepared on a historical cost basis except for financial
instruments at fair value through profit or loss (FVTP ), derivative contracts designated as hedges andfinancial assets at fair value through other comprehensive income (FV CI). The financial statements arepresented in Philippine Peso, and all values are rounded to the nearest thousand except when otherwise
indicated.
The financial statements of the Parent Company reflect the accounts maintained in the Regular Banking
nit (RB ) and Foreign Currency Deposit nit (FCD ). The financial statements of these units are
combined after eliminating inter unit accounts.
Each entity in the roup determines its own functional currency and items included in the financial
statements of each entity are measured using that functional currency. The functional currency of the
Parent Company and each of the subsidiaries is the Philippine Peso, except for the FCD of the Parent
Company and CBSI whose functional currency is SD.
Statement of Compliance
The financial statements of the roup and the Parent Company have been prepared in compliance with
Philippine Financial Reporting Standards (PFRS).
Presentation of Financial Statements
The balance sheets of the roup and of the Parent Company are presented in order of liquidity. An
analysis regarding recovery of assets or settlement of liabilities within 12 months after the reporting date(current) and more than 12 months after the reporting date (non current) is presented in Note 23.
Financial assets and financial liabilities are offset and the net amount reported in the balance sheets only
when there is a legally enforceable right to offset the recogni ed amounts and there is an intention tosettle on a net basis, or to reali e the asset and settle the liability simultaneously. The roup and the
Parent Company assess that they have currently enforceable right of offset if the right is not contingent on
a future event, and is legally enforceable in the normal course of business, event of default, and event of
insolvency or bankruptcy of the roup, the Parent Company and all of the counterparties.
Income and expenses are not offset in the statement of income unless required or permitted by any
accounting standard or interpretation, and as specifically disclosed in the accounting policies of theroup and the Parent Company.

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

3Basis of Consolidation and Investments in Subsidiaries
The consolidated financial statements of the roup are prepared for the same reporting year as the Parent
Company, using consistent accounting policies. All significant intra group balances, transactions andincome and expenses resulting from intra group transactions are eliminated in full.
Subsidiaries are consolidated from the date on which control is obtained by the Parent Company.
The roup controls an investee if and only if the roup has:•••power over the investee (i.e., existing rights that give it the current ability to direct the relevant
activities of the investee)
exposure, or rights, to variable returns from its involvement with the investee, andthe ability to use its power over the investee to affect its returns.

Non Controlling Interest
Non controlling interest represents the portion of profit or loss and net assets not owned, directly or
indirectly, by the Parent Company.
Non controlling interest is presented separately in the consolidated statement of income, consolidated
statement of comprehensive income, and within equity in the consolidated balance sheet, separately fromparent shareholders equity. Any losses applicable to the non controlling interest are allocated against theinterests of the non controlling interest even if this results in the non controlling interest having a deficit
balance.
C an e ino ntino i ie anio re

The accounting policies adopted are consistent with those of the previous financial year except for thefollowing amendments to PFRS which became effective as of January 1, 2023. Except as otherwise
indicated, these changes in the accounting policies did not have any significant impact on the financial
position or performance of the roup:§

Amendments to PAS 1, Presentation of inancial Statements and PFRS Practice Statement 2,
Ma ing Materialit udgments Disclosure of Accounting Policies
The amendments provide guidance and examples to help entities apply materiality udgements toaccounting policy disclosures. The amendments aim to help entities provide accounting policy
disclosures that are more useful by:ooReplacing the requirement for entities to disclose their significant9 accounting policies with arequirement to disclose their material9 accounting policies, andAdding guidance on how entities apply the concept of materiality in making decisions aboutaccounting policy disclosures.

The amendments to the Practice Statement provide non mandatory guidance. Early application ispermitted as long as this fact is disclosed. The application of these amendments is reflected in theroup9s financial statements under Note 2.

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C HI NA BANK I NG COR P O R AT I O N

3

4
§

Amendments to PAS 8, Definition of Accounting Estimates
The amendments introduce a new definition of accounting estimates and clarify the distinction
between changes in accounting estimates and changes in accounting policies and the correction oferrors. Also, the amendments clarify that the effects on an accounting estimate of a change in an
input or a change in a measurement technique are changes in accounting estimates if they do not
result from the correction of prior period errors.

§

Amendments to PAS 12, Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
The amendments narrow the scope of the initial recognition exception under PAS 12, so that it nolonger applies to transactions that give rise to equal taxable and deductible temporary differences.
The amendments also clarify that where payments that settle a liability are deductible for tax
purposes, it is a matter of udgement (having considered the applicable tax law) whether suchdeductions are attributable for tax purposes to the liability recogni ed in the financial statements (andinterest expense) or to the related asset component (and interest expense).

§

Amendments to PAS 12, International Tax Reform 3 Pillar Two Model Rules
The amendments introduce a mandatory exception in PAS 12 from recogni ing and disclosing
deferred tax assets and liabilities related to Pillar Two income taxes.
The amendments also clarify that PAS 12 applies to income taxes arising from tax law enacted or
substantively enacted to implement the Pillar Two Model Rules published by the rgani ation for
Economic Cooperation and Development ( ECD), including tax law that implements qualified
domestic minimum top up taxes. Such tax legislation, and the income taxes arising from it, arereferred to as Pillar Two legislation9 and Pillar Two income taxes9, respectively.
The temporary exception from recognition and disclosure of information about deferred taxes and therequirement to disclose the application of the exception, apply immediately and retrospectively upon
adoption of the amendments in June 2023.
Meanwhile, the disclosure of the current tax expense related to Pillar Two income taxes and thedisclosures in relation to periods before the legislation is effective are required for annual reporting
periods beginning on or after 1 January 2023.
ateriao ntinoi

Information

Foreign Currency Translation
The consolidated financial statements are presented in Philippine Peso.
Transactions and balances
The books of accounts of the RB are maintained in Philippine Peso, the RB 9s functional currency,
while those of the FCD are maintained in nited States ( S) dollars ( SD), the FCD 9s functional
currency.

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

5R
For financial reporting purposes, the foreign currency denominated monetary assets and liabilities in the
RB are translated in Philippine Peso based on the Bankers Association of the Philippines (BAP) closing
rate at end of the year, and foreign currency denominated income and expenses, at the exchange rates ontransaction dates. Foreign exchange differences arising from restatements of foreign currency
denominated assets and liabilities are credited to or charged against operations in the period in which therates change. Non monetary items that are measured in terms of historical cost in a foreign currency aretranslated using the exchange rates as at the dates of the initial transactions. Non monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date when thefair value was determined.
D
As at the reporting date, the assets and liabilities of the FCD are translated into the Parent Company9s
presentation currency (the Philippine Peso) at the BAP closing rate at the reporting date, and its income
and expenses are translated at the BAP weighted average rate for the year. Exchange differences arisingon translation are taken directly to the statement of comprehensive income under Cumulative translationad ustment9. pon actual remittance or transfer of the FCD income to RB , the related exchange
difference arising from translation lodged under Cumulative translation ad ustment is recogni ed in thestatement of income of the RB books.
Fair Value Measurement
The roup measures financial instruments, such as financial instruments at FVTP , derivative contracts
designated as hedges, and financial assets at FV CI at fair value at each reporting date. Also, fair valuesof financial instruments measured at amorti ed cost are disclosed in Note 5.
The methods and assumptions used by the roup and Parent Company in estimating fair values aredisclosed in Note 5.
SP RA
Securities purchased under agreements to resell at a specified future date ( reverse repos9) are notrecogni ed in the balance sheet. An asset corresponding to the cash paid, including accrued interest, isrecogni ed in the balance sheet as SP RA. The difference between the purchase price and the resale
price is treated as interest income and is accrued over the life of the agreement using the EIR method.
Financial Instruments Initial Recognition
Date of recognition
Purchases or sales of financial assets, except for derivative instruments, that require delivery of assets
within the time frame established by regulation or convention in the marketplace are recogni ed on thesettlement date. Settlement date accounting refers to (a) the recognition of an asset on the day it isreceived by the roup, and (b) the derecognition of an asset and recognition of any gain or loss on
disposal on the day that such asset is delivered by the roup. Any change in fair value of a financial
asset is recogni ed in the statement of income for assets classified as financial assets at FVTP , and in
equity for assets classified as financial assets at FV CI. Derivatives are recogni ed on a trade date basis.
Deposits, amounts due from banks, and loans and receivables are recogni ed when cash is received by
the roup or advanced to the borrowers.

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C HI NA BANK I NG COR P O R AT I O N

5Initial recognition of financial instruments
All financial instruments are initially recogni ed at fair value. Except for financial assets and financial
liabilities at FVTP , the initial measurement of financial instruments includes transaction costs.
Classification and Measurementnder PFRS 9, the classification and measurement of financial assets is driven by the contractual cash
flow characteristics of the financial assets and the entity9s business model for managing the financial
assets.
As part of its classification process, the roup assesses the contractual terms of financial assets to
identify whether they meet the solely payments of principal and interest9 (SPPI) test. Principal9 for the
purpose of this test is defined as the fair value of the financial asset at initial recognition and may changeover the life of the financial asset (e.g., if there are repayments of principal or amorti ation of thepremium or discount).
The most significant elements of interest within a lending arrangement are typically the consideration for
the time value of money and credit risk. To make the SPPI assessment, the roup applies udgment andconsiders relevant factors such as the currency in which the financial asset is denominated and the period
for which the interest rate is set. In contrast, contractual terms that introduce a more than de minimis
exposure to risks or volatility in the contractual cash flows that are unrelated to a basic lending
arrangement do not give rise to contractual cash flows that are solely payments of principal and intereston the amount outstanding. In such cases, the financial asset is required to be measured at FVTP .
The roup determines its business model at the level that best reflects how it manages groups of financial
assets to achieve its business ob ective.
The roup s business model is not assessed on an instrument by instrument basis, but at a higher level ofaggregated portfolios and is based on observable factors such as:••••

how the performance of the business model and the financial assets held within that business modelare evaluated and reported to the entity s key management personnel
the risks that affect the performance of the business model (and the financial assets held within thatbusiness model) and, in particular, the way those risks are managed
how managers of the business are compensated (for example, whether the compensation is based on
the fair value of the assets managed or on the contractual cash flows collected) andthe expected frequency, value, and timing of sales are also important aspects of the roup9s
assessment.

The business model assessment is based on reasonably expected scenarios without taking worst case or
stress case9 scenarios into account. If cash flows after initial recognition are reali ed in a way that isdifferent from the roup s original expectations, the roup does not change the classification of theremaining financial assets held in that business model, but incorporates such information when assessing
newly originated or newly purchased financial assets going forward unless a change in business modelhas taken place, in which case, reclassification is necessary.

*SGVFS187254*

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

7
The roup9s measurement categories are described below:
inancial Assets at Amorti ed ost
Financial assets are measured at amorti ed cost if both of the following conditions are met:••

the asset is held within the roup9s business model whose ob ective is to hold financial assets inorder to collect contractual cash flows andthe contractual terms of the instrument give rise, on specified dates, to cash flows that are SPPI on theprincipal amount outstanding.

Financial assets meeting these criteria are measured initially at fair value plus transaction costs. They aresubsequently measured at amorti ed cost using the effective interest method less any impairment in value.
The amorti ation is included in Interest income9 in the statement of income. The expected credit losses(EC ) are recogni ed in the statement of income under Provision for impairment and credit losses9. The
effects of revaluation of foreign currency denominated investments are recogni ed in the statement ofincome. ains or losses arising from disposals and redemptions of these instruments are included inains (losses) on disposal and redemption of investment securities at amorti ed cost9 in the statement ofincome.
The roup may irrevocably elect at initial recognition to classify a financial asset that meets theamorti ed cost criteria above as at FVTP if that designation eliminates or significantly reduces anaccounting mismatch had the financial asset been measured at amorti ed cost.
The roup9s financial assets at amorti ed cost are presented in the balance sheet as Due from BSP, Duefrom other banks, Interbank loans receivable and SP RA, Investment securities at amorti ed cost, oansand receivables, Accrued interest receivables, and certain financial assets under ther assets.
inancial Assets at TPL
Debt instruments that neither meet the amorti ed cost nor the FV CI criteria, or that meet the criteria but
the roup has chosen to designate as at FVTP at initial recognition, are classified as financial assets at
FVTP . Equity investments are classified as financial assets at FVTP , unless the roup irrevocably
designates an equity investment that is not held for trading as at FV CI at initial recognition. The
roup9s financial assets at FVTP include government securities, corporate bonds, derivatives, andequity securities which are held for trading purposes.
A financial asset is considered as held for trading if:•••

it has been acquired principally for the purpose of selling it in the near termon initial recognition, it is part of a portfolio of identified financial instruments that the roup
manages together and has evidence of a recent actual pattern of short term profit taking or
it is a derivative that is not designated and effective as a hedging instrument or financial guarantee.

ains and losses arising from changes in the fair value (mark to market) of the financial assets at FVTP
are included in Trading and securities gain (loss) net9 account in the statement of income.
Interest recogni ed based on the contractual interest rate of these investments is reported in the statementof income under Interest income9 account while dividend income is reported in the statement of income
under Miscellaneous income9 account when the right of payment has been established.

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C HI NA BANK I NG COR P O R AT I O N

78Deri ati e instruments
The Parent Company is a party to derivative instruments, particularly, forward exchange contracts,
interest rate swaps (IRS), cross currency swaps (CCS), futures, and warrants. These contracts are enteredinto as a service to customers, as a means of reducing and managing the Parent Company9s foreignexchange risk and interest rate risk, as well as for trading purposes. Such derivative financial
instruments, which are not designated as accounting hedges, are carried at fair value through profit orloss.
Any gains or losses arising from changes in fair value of derivative instruments that are not designated as
accounting hedges are taken directly to the statement of income under Foreign exchange gain (loss) net9
for forward exchange contracts and Trading and securities gain (loss) net9 for IRS, CCS, futures andwarrants.
inancial Assets at
I E uit In estments
At initial recognition, the roup can make an irrevocable election (on an instrument by instrument basis)to designate equity investments as at FV CI. owever, such designation is not permitted if the equity
investment is held by the roup for trading. The roup has designated certain equity instruments as at
FV CI.
Financial assets at FV CI are initially measured at fair value plus transaction costs. Subsequently, they
are measured at fair value, with no deduction for any disposal costs. ains and losses arising fromchanges in fair value are recogni ed in other comprehensive income and accumulated in Net unreali ed
gain (loss) on financial assets at FV CI9 in the balance sheet. hen the asset is disposed of, thecumulative gain or loss previously recogni ed in the Net unreali ed gain (loss) on financial assets at
FV CI9 account is not reclassified to profit or loss, but is reclassified directly to Surplus account. Any
dividends earned on holding these equity instruments are recogni ed in profit or loss under
Miscellaneous income9 account.
inancial Assets at
I Debt In estments
The roup applies the category of debt instruments measured at FV CI when both of the following
conditions are met:••

the instrument is held within a business model, the ob ective of which is achieved by both collecting
contractual cash flows and selling financial assets andthe contractual terms of the financial asset meet the SPPI test.

FV CI debt instruments are subsequently measured at fair value with gains and losses arising due tochanges in fair value being recogni ed in CI. Interest income and foreign exchange gains and losses arerecogni ed in profit or loss. Provision for credit and impairment losses is recogni ed in profit or loss withthe corresponding allowance for EC recogni ed in CI and accumulated in Net unreali ed gain (loss)
on financial assets at FV CI9 in the balance sheets.
n derecognition, cumulative gains or losses previously recogni ed in CI are reclassified from CI toprofit or loss.

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9Reclassification
The roup can only reclassify financial assets if the ob ective of its business model for managing thosefinancial assets changes. A change in business model occurs when the roup either begins or ceases toperform an activity that is significant to its operations. A change in the ob ective of the roup9s businessmodel will be effected only at the beginning of the next reporting period following the change in thebusiness model.
Impairment of Financial assets
EC represents credit losses that reflect an unbiased and probability weighted measure of expected cash
shortfalls, discounted at the EIR, which is determined by evaluating a range of possible outcomes, thetime value of money, and reasonable and supportable information about past events, current conditions,and forecasts of future economic conditions. The credit risk and impairment assessment policy of theroup and Parent Company are disclosed in Note .
edge Accounting
For the purpose of hedge accounting, hedges are classified as:•••

Fair value hedges when the risk being hedged is the exposure to changes in the fair value of arecogni ed asset or liability or an unrecogni ed firm commitment
Cash flow hedges when the risk being hedged is the exposure to variability in cash flows that is either
attributable to a particular risk associated with a recogni ed asset or liability or a highly probable
forecast transaction or the foreign currency risk in an unrecogni ed firm commitment andedges of a net investment in a foreign operation.

At the inception of a hedge relationship, the Parent Company formally designates and documents thehedge relationship to which it wishes to apply hedge accounting and the risk management ob ective andstrategy for undertaking the hedge.
The documentation includes identification of the hedging instrument, the hedged item, the nature of therisk being hedged, and how the Parent Company will assess whether the hedging relationship meets thehedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how thehedge ratio is determined).
The Parent Company applies the IB R reform Phase 1 reliefs to hedging relationships directly affectedby IB R reform during the period before the replacement of an existing interest rate benchmark with analternative risk free rate (RFR). A hedging relationship is affected if IB R reform gives rise touncertainties about the timing and or amount of benchmark based cash flows of the hedged item or thehedging instrument. IB R reform Phase 1 also requires that for hedging relationships affected by IB R
reform, the Parent Company must assume that, for the purpose of assessing expected future hedge
effectiveness, the interest rate is not altered as a result of IB R reform. Further, the Parent Company is
not required to discontinue the hedging relationship. The hedge ineffectiveness must be recogni ed in
profit or loss, as normal.
The reliefs cease to apply once certain conditions are met. These include when the uncertainty arisingfrom IB R reform is no longer present with respect to the timing and amount of the benchmark based
cash flows of the hedged item, if the hedging relationship is discontinued, or once amounts in the cash
flow hedge reserve have been released.

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910IB R reform Phase 2 provides temporary reliefs that allow the Parent Company9s hedging relationships
to continue upon the replacement of an existing interest rate benchmark with an alternative risk free rate(RFR). The reliefs require the Parent Company to amend the hedge designations and hedge
documentation. nder one of the reliefs, the Parent Company may elect RFRs to be deemed as meeting
the PFRS 9 requirement to be separately identifiable components of the hedged item. In view of thereliefs, the Parent Company has amended its hedge documentations and deemed Secured vernight
Financing Rate (S FR) to be <separately identifiable risk component since the Parent Company has areasonable expectation that the rate will meet the <separately identifiable= requirement within 24 months
from its designation.
as flow edges
The effective portion of the gain or loss on the hedging instrument is recogni ed in CI as cash flow
hedge reserve (Note 2 ) presented under edge related reserve9 in the balance sheet, while any
ineffective portion is recogni ed immediately in the statement of income. The cash flow hedge reserve is
ad usted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change
in fair value of the hedged item.
For cash flow hedges, to calculate the change in fair value of the hedged item attributable to the hedgedrisk, the Parent Company uses the hypothetical derivative method. The hypothetical derivative method
involves establishing a notional derivative that would be the ideal hedging instrument for the hedged
exposure (normally an interest rate swap with no unusual terms and a ero fair value at inception of thehedge relationship). The fair value of the hypothetical derivative is then used as a proxy for the netpresent value of the hedged future cash flows against which changes in value of the actual hedging
instrument are compared to assess effectiveness and measure ineffectiveness.
hen foreign exchange forward contracts are used in hedging relationships, the Parent Company candesignate the instrument in its entirety or exclude the forward element by designating the spot element
only. The forward element in a foreign exchange forward contract is the difference between the spot andforward prices. hen only the spot element is designated, the Parent Company has a choice to apply thecost of hedging accounting to the excluded forward element. In applying the cost of hedging accounting
to the forward element of the foreign exchange forward contract, the change in the fair value of theforward element is recogni ed in CI and accumulated in a separate component of equity. In case of atime period related hedged item, the forward element that exists at inception is amorti ed from theseparate component of equity to profit or loss on a systematic and rational basis. The unamorti ed
portion of the cost of hedging is presented under edge related reserve9 in the balance sheet. The
amorti ation of the forward element is presented under Foreign exchange gain (loss) net9 in thestatements of income.
hen the Parent Company discontinues hedge accounting for a cash flow hedge, it must account for theamount that has been accumulated in the cash flow hedge reserve as follows: (a) the amount remains inaccumulated other comprehensive income if the hedged future cash flows are still expected to occur or(b) the amount is immediately reclassified to profit or loss as a reclassification ad ustment if the hedged
future cash flows are no longer expected to occur. Any amount immediately reclassified to profit or loss
as a reclassification ad ustment is presented under Trading and securities gain (loss) net9 in thestatements of income.
As of December 31, 2023 and 2022, the Parent Company has interest rate swaps and foreign exchange
forward contracts that have been designated as hedging instruments in cash flow hedges (Note 2 ).

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11
Financial iabilities
Financial liabilities which include deposit liabilities, bills payable, bonds payable, derivative liabilities,
and other liabilities (except tax related payables, pre need reserves and post employment defined benefit
obligation) are recogni ed when the roup becomes a party to the contractual terms of the instrument.
Financial liabilities, except derivative liabilities, are recogni ed initially at their fair value andsubsequently measured at amorti ed cost using the effective interest method. All interest related charges
incurred on financial liabilities are recogni ed as an expense in the statements of income under Interest
expense9.
Deposit liabilities are stated at amounts in which they are to be paid. Interest is accrued periodically andrecogni ed in a separate liability account before recogni ing as part of deposit liabilities.
Bills payable9 and Bonds payable9 are recogni ed initially at fair value, which is the issue proceeds (fairvalue of consideration received) less any issuance costs. These are subsequently measured at amorti ed
cost, any difference between the proceeds net of transaction costs and the redemption value is recogni edin the statement of income over the period of the borrowings using the effective interest method.
Securities sold under agreements to repurchase at a specified future date ( repos9) are notderecogni ed from the statement of financial position. The corresponding cash received, including
accrued interest, is recogni ed in the statement of financial position as SS RA included in Bills
payable9 and is considered as a loan to the roup, reflecting the economic substance of such transaction.
Derivative liabilities are recogni ed initially and subsequently measured at fair value with changes in fairvalue recogni ed in the statement of income, unless designated as an accounting hedge.
Derecognition of Financial Assets and iabilities
inancial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of financial assets) is
derecogni ed when:•••

the rights to receive cash flows from the asset have expired or
the roup retains the right to receive cash flows from the asset, but has assumed an obligation to pay
them in full without material delay to a third party under a <pass through= arrangement or
the roup has transferred its rights to receive cash flows from the asset and either (a) has transferred
substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained the risks
and rewards of the asset but has transferred control of the asset.

here the roup has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement and has neither transferred nor retained substantially all the risks and rewards of theasset nor transferred control of the asset, the asset is recogni ed to the extent of the roup9s continuing
involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferredasset is measured at the lower of the original carrying amount of the asset and the maximum amount ofconsideration that the roup could be required to repay.

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1112Modification of financial assets
In certain circumstances, the roup modifies the original terms and conditions of a financial asset or
credit exposure to form a new loan agreement or payment schedule. The modifications can be given
depending on the borrower9s or counterparty9s current or expected financial difficulty. The modifications
may include, but are not limited to, change in interest rate and terms, principal amount, maturity date,
date and amount of periodic payments, and accrual of interest and charges.
The roup performs a quantitative assessment similar to that being performed for modification offinancial liabilities. In performing the quantitative assessment, the roup considers the new terms of afinancial asset to be substantially different if the present value of the cash flows under the new terms,
including any fees paid net of any fees received and discounted using the original effective interest rate,
is at least 10% different from the present value of the remaining cash flows of the original financial asset.
hen the contractual cash flows of a financial asset are renegotiated or otherwise modified and therenegotiation or modification does not result in the derecognition of that financial asset, the roup
recalculates the gross carrying amount of the financial asset as the present value of the renegotiated or
modified contractual cash flows discounted at the original EIR (or credit ad usted EIR for purchased ororiginated credit impaired financial assets) and recogni es a modification gain or loss in the statement ofincome. A modified financial asset that does not result in derecognition is classified as Stage 3 if there
are indicators of impairment or unlikeliness to pay. therwise, the modified financial asset is classified
as Stage 1 or Stage 2, depending on whether the asset exhibits significant increase in credit risk (Note ).
hen the modification of a financial asset results in the derecognition of the existing financial asset andthe subsequent recognition of a new financial asset, the modified asset is considered a new financial
asset and a gain or loss on derecognition of the <old= financial asset is recogni ed in the statements ofincome, if any. Accordingly, the date of the modification shall be treated as the date of initial recognitionof that financial asset when applying the impairment requirements to the modified financial asset.
The newly recogni ed financial asset is classified as Stage 1 for EC measurement purposes, unless the
new financial asset is deemed to be purchased or originated as credit impaired (P CI).
inancial liabilities
A financial liability is derecogni ed when the obligation under the liability is discharged, cancelled, or
has expired. here an existing financial liability is replaced by another from the same lender onsubstantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts is recogni ed in the statement ofincome.
Financial uarantees and ndrawn oan Commitments
The roup issues financial guarantees and loan commitments. Financial guarantees are those issued by
the roup to creditors as allowed under existing rules and regulations whereby it guarantees third party
obligations by signing as guarantor in the contract agreement. ndrawn loan commitments and letters ofcredit are commitments under which the roup is required, over the duration of the commitment, toprovide a loan with pre specified terms to the customer. The nominal contractual value of financial
guarantees and undrawn loan commitments, where the loan agreed to be provided is on market terms, are
not recorded in the balance sheet. These contracts are in the scope of the EC requirements where theroup estimates the expected portion of the undrawn loan commitments that will be drawn over their
expected life. The EC related to loan commitments is recogni ed in ther liabilities9.

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13rite offs
Financial assets are written off either partially or in their entirety when the roup no longer expects
collections or recoveries within a foreseeable future. If the amount to be written off is greater than theaccumulated loss allowance, the difference is first treated as an addition to the allowance that is thenapplied against the gross carrying amount. Any subsequent recoveries are credited to the Miscellaneous
income9 account in the statement of income.
Investment in Associates
Associates pertain to all entities over which the roup has significant influence, but not control, generallyaccompanying a shareholding of between 20.00% and 50.00% of the voting rights. In the consolidated
and parent company financial statements, investments in associates are accounted for under the equity
method of accounting.
hen the roup9s share of losses in an associate equals or exceeds its interest in the associate, including
any other unsecured receivables, the roup does not recogni e further losses, unless it has incurred
obligations or made payments on behalf of the associate. Profits or losses resulting from transactions
between the roup and an associate are eliminated to the extent of the interest in the associate.
Dividends earned on this investment are recogni ed as a reduction from the carrying value of theinvestment.
The financial statements of the associate are prepared for the same reporting period as the Parent
Company. here necessary, ad ustments are made to bring the accounting policies in line with those of
the roup.
pon loss of significant influence over the associate, the roup measures and recogni es any retained
investment at its fair value. Any difference between the carrying amount of the associate upon loss ofsignificant influence and the fair value of the retained investment and proceeds from disposal isrecogni ed in profit or loss.
Investment in Subsidiaries
In the parent company financial statements, investment in subsidiaries is accounted for under the equity
method of accounting similar to the investment in associates.
oodwilloodwill acquired in a business combination is initially measured at cost, being the excess of theaggregate of fair value of the consideration transferred and the amount recogni ed for non controllinginterest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower
than the fair value of the net assets of the subsidiary acquired, the difference is recogni ed in profit orloss as gain on bargain purchase under Miscellaneous income9.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
oodwill is tested for impairment annually or more frequently if events or changes in circumstancesindicate the carrying value may be impaired. For the purpose of impairment testing, goodwill acquired ina business combination is, from the date of acquisition, allocated to each of the roup9s C s, or groupsof C s, that are expected to benefit from the synergies of the combination, irrespective of whether*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

1314other assets or liabilities of the acquiree are assigned to those units or group of units. Each unit or groupof units to which the goodwill is allocated:••

represents the lowest level within the roup at which the goodwill is monitored for internalmanagement purposes andis not larger than an operating segment identified for segment reporting purposes.

here goodwill forms part of a C(or group of C s) and part of the operation within that unit isdisposed of, the goodwill associated with the operation disposed of is included in the carrying amount of
the operation when determining the gain or loss on disposal of the operation. oodwill disposed of inthis circumstance is measured based on the relative values of the operation disposed of and the portion of
the C
retained.
Cash Dividend Distribution to Equity olders of the Parent Company
The roup recogni es a liability to make cash distributions to equity holders of the Parent Company
when the distribution is authori ed and the distribution is no longer at the discretion of the roup. A
corresponding amount is recogni ed directly in equity.
Bank Premises, Furniture, Fixtures and Equipment
and is stated at cost less any impairment in value while depreciable properties such as buildings,
leasehold improvements, and furniture, fixtures and equipment are stated at cost less accumulated
depreciation and amorti ation, and any impairment in value. Such cost includes the cost of replacing partof the bank premises, furniture, fixtures and equipment when that cost is incurred and if the recognition
criteria are met, but excluding repairs and maintenance costs.
Construction in progress is stated at cost less any impairment in value. The initial cost comprises its
construction cost and any directly attributable costs of bringing the asset to its working condition andlocation for its intended use, including borrowing costs. Construction in progress is not depreciated until
such time that the relevant assets are completed and put into operational use.
Depreciation and amorti ation is calculated using the straight line method over the estimated useful life(E ) of the depreciable assets as follows:
Buildings
Furniture, fixtures and equipment
easehold improvements

E
50 years
3 to 5 years
Shorter of years or the
related lease terms

The depreciation and amorti ation method and useful life are reviewed periodically to ensure that themethod and period of depreciation and amorti ation are consistent with the expected pattern of economic
benefits from items of bank premises, furniture, fixtures and equipment and leasehold improvements.
An item of bank premises, furniture, fixtures and equipment is derecogni ed upon disposal or when no
future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognitionof the asset (calculated as the difference between the net disposal proceeds and the carrying amount of theasset) is included in the statement of income in the year the asset is derecogni ed.

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15
Investment Properties
Investment properties include real properties acquired in settlement of loans and receivables which aremeasured initially at cost, including certain transaction costs. Investment properties acquired through anonmonetary asset exchange is measured initially at fair value unless (a) the exchange lacks commercial
substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable.
The difference between the fair value of the investment property upon foreclosure and the carrying valueof the loan is recogni ed under ain on asset foreclosure and dacion transactions9 in the statement ofincome. Subsequent to initial recognition, depreciable investment properties are stated at cost lessaccumulated depreciation and any accumulated impairment in value, except for land which is stated atcost less impairment in value.
Expenditures incurred after the investment properties have been put into operation, such as repairs andmaintenance costs, are normally charged against income in the period in which the costs are incurred.
Depreciation is calculated on a straight line basis using the remaining Eof the building andimprovement components of investment properties which range from 10 to 30 years from the time ofacquisition of the investment properties.
Investment properties are derecogni ed when they have either been disposed of or when the investment
properties are permanently withdrawn from use and no future benefit is expected from their disposal.
Any gains or losses on the derecognition of an investment property are recogni ed as ain on sale ofinvestment properties9 in the statement of income in the year of derecognition.
Transfers are made to investment properties when, and only when, there is a change in use evidenced byending of owner occupation, commencement of an operating lease to another party or ending of
construction or development. Transfers are made from investment properties when, and only when, there
is a change in use evidenced by commencement of owner occupation or commencement of developmentwith a view to sale.
Intangible Assets
Intangible assets include exchange trading right for the roup and software costs and branch licenses
resulting from the Parent Company9s acquisition of CBSI, nity Bank, and PDB (Notes 11 and 14).
Software costs
Costs related to software purchased by the roup for use in operations are amorti ed on a straight line
basis over 3 to 10 years. The amorti ation method and useful life are reviewed periodically to ensure thatthe method and period of amorti ation are consistent with the expected pattern of economic benefits
embodied in the asset.
ranc licenses
The branch licenses are initially measured at cost as of the date of acquisition (at fair value if part ofassets acquired in a business combination) and are deemed to have an indefinite useful life as there is noforeseeable limit to the period over which they are expected to generate net cash inflows for the roup.
Such intangible assets are not amorti ed, instead they are tested for impairment annually either
individually or at the C
level. Impairment is determined by assessing the recoverable amount of eachC(or group of C s) to which the intangible asset relates. Recoverable amount represents the*SGVFS187254*

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15

1
C 9s value in use. here the recoverable amount of the C
impairment loss is recogni ed.

is less than its carrying amount, anains and losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recogni ed in earnings when theasset is derecogni ed.
Exc ange Trading Rig t
Exchange trading right is a result of the Philippine Stock Exchange (PSE) conversion plan, as discussed
in Note 14, to preserve access of CBCSec to the trading facilities and continue transacting business in the
PSE. Exchange trading right is carried at original cost less any allowance for impairment loss. CBCSec
does not intend to sell the exchange trading right in the near future.
The exchange trading right is an intangible asset that is regarded as having an indefinite useful life as
there is no foreseeable limit to the period over which this asset is expected to generate net cash inflows
for the roup but is tested annually for any impairment in reali able value.
Impairment of Non financial Assets
At each reporting date, the roup assesses whether there is any indication that its non financial assets(e.g., investment in associates, investment properties, bank premises, furniture, fixtures and equipment,
goodwill and intangible assets) may be impaired. hen an indicator of impairment exists or when an
annual impairment testing for an asset is required, the roup makes a formal estimate of recoverable
amount.
Recoverable amount is the higher of an asset9s (or C 9s) fair value less costs to sell and its value in use
and is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets, in which case the recoverable amount isassessed as part of the C
to which it belongs. here the carrying amount of an asset (or C )exceeds its recoverable amount, the asset (or C ) is considered impaired and is written down to its
recoverable amount. In assessing value in use, the estimated future cash flows are discounted to theirpresent value using a pre tax discount rate that reflects current market assessments of the time value ofmoney and the risks specific to the asset (or C ).
An impairment loss is charged to operations in the year in which it arises.
For non financial assets, excluding goodwill and branch licenses, an assessment is made at each reporting
date as to whether there is any indication that previously recogni ed impairment losses may no longer
exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously
recogni ed impairment loss is reversed, except for goodwill, only if there has been a change in theestimates used to determine the asset9s recoverable amount since the last impairment loss was recogni ed.
If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
impairment loss been recogni ed for the asset in prior years. Such reversal is recogni ed in the statementof income. After such a reversal, the depreciation expense is ad usted in future years to allocate theasset9s revised carrying amount, less any residual value, on a systematic basis over its remaining life.

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17
Accounting Policy on eases
The roup assesses at contract inception whether a contract is, or contains, a lease. That is, if thecontract conveys the right to control the use of an identified asset for a period of time in exchange forconsideration.
rou as a lessee
The roup applies a single recognition and measurement approach for all leases, except for short termleases and leases of low value assets. The roup recogni es lease liabilities to make lease payments andright of use assets representing the right to use the underlying assets.
i Rig t of use assets
The roup recogni es right of use assets at the commencement date of the lease (i.e., the date theunderlying asset is available for use). Right of use assets are measured at cost, less any accumulated
depreciation and impairment losses, and ad usted for any remeasurement of lease liabilities. The cost ofright of use assets includes the amount of lease liabilities recogni ed ad usted by lease payments made ator before the commencement date and lease incentives received. Right of use assets are depreciated on astraight line basis over the shorter of the lease term and the estimated useful lives of the depreciable
assets. The depreciation expense is presented under Depreciation and amorti ation9 in the statement ofincome.
If ownership of the leased asset transfers to the roup at the end of the lease term or the cost reflects theexercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right of use assets are also sub ect to impairment. Refer to the accounting policies on Impairment of
Non financial Assets.
ii Lease liabilities
At the commencement date of the lease, the roup recogni es lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments(including in substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by theroup and payments of penalties for terminating the lease, if the lease term reflects the roup exercising
the option to terminate. Variable lease payments that do not depend on an index or a rate are recogni ed
as expenses in the period in which the event or condition that triggers the payment occurs. In calculating
the present value of lease payments, the roup uses its incremental borrowing rate at the leasecommencement date because the interest rate implicit in the lease is not readily determinable. After thecommencement date, the amount of lease liabilities is increased to reflect the accretion of interest andreduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments), or a change
in the assessment of an option to purchase the underlying asset.
iii S ort term leases and leases of low alue assets
The roup applies the short term lease recognition exemption to its short term leases of branch sites (i.e.,
those leases that have a lease term of 12 months or less from the commencement date and do not containa purchase option). It also applies the lease of low value assets recognition exemption to leases of ATM*SGVFS187254*

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1718
sites that are considered to be low value. ease payments on short term leases and leases of low value
assets are recogni ed as expense on a straight line basis over the lease term.
rou as a lessor
eases in which the roup does not transfer substantially all the risks and rewards incidental toownership of an asset are classified as operating leases. Rental income arising from leased properties isaccounted for on a straight line basis over the lease terms and is included in revenue in the statement ofincome due to its operating nature. Initial direct costs incurred in negotiating and arranging an operatinglease are added to the carrying amount of the leased asset and recogni ed over the lease term on the same
basis as rental income. Contingent rents are recogni ed as revenue in the period in which they areearned.
Sale assignment and leasebac transaction
In a sale (assignment) and leaseback transaction, a seller lessee (assignor lessee) transfers an asset to abuyer lessor (assignee lessor) and leases that asset back for a period of time. In accounting for sale(assignment) and leaseback transactions where the Parent Company is the buyer lessor (assignee lessor),the Parent Company first determines whether the initial transfer of the underlying asset from theseller lessee (assignor lessee) to the Parent Company is a sale in accordance with PFRS 15.
PFRS 15 requires an entity to satisfy the performance obligation by transferring a promised good orservice (i.e., asset) to the customer. An asset is transferred when (or as) the customer obtains control of
the asset. For the purpose of determining control in accordance with PFRS 15, a customer does not
obtain control of such asset if the contract contains an option to purchase.
If the transfer of the asset meets the requirements for a <sale= in PFRS 15, then a sale has occurred andthe transaction is accounted under PFRS 1 9s lessor accounting requirements. therwise, there is no saleand the transaction is accounted for as a financing arrangement under PFRS 9 (Note 10).
Capital Stock
Capital stocks are recorded at par. Proceeds in excess of par value are recogni ed under equity as
Capital paid in excess of par value9 in the balance sheet. Incremental costs incurred which are directly
attributable to the issuance of new shares are shown in equity as a deduction from proceeds, net of tax.
Revenue Recognition
Re enues wit in t e sco e of P RS
Re enue from ontracts wit ustomers
Revenue from contract with customers is recogni ed upon transfer of promised goods or services tocustomers at an amount that reflects the consideration to which an entity expects to be entitled in
exchange for transferring goods or services to a customer. The roup and the Parent Company exercise
udgment, taking into consideration all of the relevant facts and circumstances, when applying each stepof the five step model to contracts with customers.
The following specific recognition criteria must be met before revenue is recogni ed for contracts within
the scope of PFRS 15:
ee and commission income
The roup earns fee and commission income from a diverse range of services it provides to its
customers. Fee income can be divided into the following two categories:*SGVFS187254*

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19a.

ee income earned from ser ices t at are ro ided o er a certain eriod of time
Fees earned for the provision of services over a period of time are accrued over that period. These
fees include investment fund fees, custodian fees, fiduciary fees, credit related fees, asset
management fees, portfolio and other management fees, and advisory fees.

b.

ee income from ro iding transactions ser ices
Fees arising from negotiating or participating in the negotiation of a transaction for a third party
such as commission income, underwriting fees, corporate finance fees, and brokerage fees for thearrangement of the acquisition of shares or other securities or the purchase or sale of businesses arerecogni ed on completion of the underlying transaction. Fees or components of fees that are linked
to a certain performance are recogni ed after fulfilling the corresponding criteria.

oan syndication fees are recogni ed in the statement of income when the syndication has been
completed and the roup retains no part of the loans for itself or retains part at the same EIR as for theother participants.
Ser ice c arges and enalties
Service charges and penalties are recogni ed only upon collection or accrued where there is a reasonable
degree of certainty as to their collectability.
t er income
Income from sale of service is recogni ed upon rendition of the service. Income from sale of properties
is recogni ed when control has been transferred to the counterparty and when the collectability of thesales price is reasonably assured.
Re enues outside t e sco e of P RS
Interest income
For all interest bearing financial assets, interest income is recorded either (i) at EIR, which is the rate thatexactly discounts estimated future cash payments or receipts through the expected life of the financial
instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or
financial liability, or (ii) at rate stated in the contract. The calculation takes into account all contractual
terms of the financial instrument (for example, prepayment options), includes any fees or incremental
costs that are directly attributable to the instrument and are an integral part of the EIR, as applicable, but
not future credit losses. The ad usted carrying amount is calculated based on the original EIR. Thechange in carrying amount is recorded as Interest income9. oan commitment fees for loans that arelikely to be drawn down are deferred (together with any incremental costs) and recogni ed as an
ad ustment to the EIR on the loan. If the commitment expires without the roup making the loan, thecommitment fees are recogni ed as other income on expiry.
nce the recorded value of a financial asset or group of similar financial assets has been reduced due toan impairment loss, interest income continues to be recogni ed using the original EIR applied to the newcarrying amount.
Di idend income
Dividend income is recogni ed when theroup9s right to receive payment is established.

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Expense Recognition
Interest ex ense
Interest expense for all interest bearing financial liabilities are recogni ed in Interest expense9 in thestatement of income using the EIR of the financial liabilities to which they relate.
erating ex enses
perating expenses constitute costs which arise in the normal business operation and are recogni ed
when incurred.
Taxes and licenses
This includes all other taxes, local and national, including gross receipts taxes ( RT), documentary stamp
taxes, real estate taxes, licenses, and permit fees. Taxes and licenses are recogni ed when incurred.
Retirement Benefits
Defined benefit lan
The net defined benefit liability or asset is the aggregate of the present value of the defined benefit
obligation at the end of the reporting period reduced by the fair value of plan assets and ad usted for any
effect of limiting a net defined benefit asset to the asset ceiling. The defined benefit obligation is
calculated annually by an independent actuary. The present value of the defined benefit obligation isdetermined by discounting the estimated future cash outflows using interest rates on government bondsthat have terms to maturity approximating the terms of the related retirement liability. The asset ceilingis the present value of any economic benefits available in the form of refunds from the plan or reductions
in future contributions to the plan.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
pro ected unit credit method.
Defined benefit costs and remeasurements comprise the following:(a) service cost(b) net interest on the net defined benefit liability or asset and(c) remeasurements of net defined benefit liability or asset.
Service costs which include current service costs, past service costs, and gains or losses on non routine
settlements are recogni ed as expense in profit or loss. Past service costs are recogni ed when planamendment or curtailment occurs.
Net interest on the net defined benefit liability or asset is the change during the period in the net defined
benefit liability or asset that arises from the passage of time which is determined by applying the discountrate based on Philippine government bonds to the net defined benefit liability or asset. Net interest on the
net defined benefit liability or asset is recogni ed as expense or income in profit or loss.
Remeasurements comprising actuarial gains and losses, return on plan assets and any change in the effectof the asset ceiling (excluding net interest on defined benefit liability) are recogni ed immediately in CI
in the period in which they arise. Remeasurements are not reclassified to profit or loss in subsequent
periods.

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Plan assets are assets that are held by a long term employee benefit fund. Plan assets are not available tothe creditors of the roup, nor can they be paid directly to the roup. The fair value of plan assets isbased on market price information. hen no market price is available, the fair value of plan assets is
estimated by discounting expected future cash flows using a discount rate that reflects both the risk
associated with the plan assets and the maturity or expected disposal date of those assets (or, if they haveno maturity, the expected period until the settlement of the related obligations).
The roup9s right to be reimbursed of some or all of the expenditure required to settle a defined benefit
obligation is recogni ed as a separate asset at fair value when, and only when, reimbursement is virtuallycertain. If the fair value of the plan assets is higher than the present value of the defined benefit
obligation, the measurement of the resulting defined benefit asset is limited to the present value of
economic benefits available in the form of refunds from the plan or reductions in future contributions to
the plan.
Em lo ee lea e entitlement
Employee entitlements to annual leave are recogni ed as a liability when they are accrued to theemployees. The undiscounted liability for leave expected to be settled after the end of the annual
reporting period is recogni ed for services rendered by employees up to the end of the reporting period.
Share based Payments (Stock rants)
Employees (including senior executives) of the roup receive remuneration in the form of share based
payments (stock grants), whereby employees render services as consideration for equity instruments(equity settled transactions).
E uit settled transactions
The cost of equity settled transactions is determined by the fair value at the date when the grant is madeusing an appropriate valuation model. That cost is recogni ed in employee benefits expense, together
with a corresponding increase in equity (other capital reserves), over the period in which the service and,
where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense
recogni ed for equity settled transactions at each reporting date until the vesting date reflects the extent towhich the vesting period has expired and the roup9s best estimate of the number of equity instrumentsthat will ultimately vest. The expense or credit in the statement of income for a period represents the
movement in cumulative expense recogni ed as at the beginning and end of that period.
Service and non market performance conditions are not taken into account when determining the grant
date fair value of awards, but the likelihood of the conditions being met is assessed as part of the roup9s
best estimate of the number of equity instruments that will ultimately vest. Market performance
conditions are reflected within the grant date fair value. Any other conditions attached to an award, but
without an associated service requirement, are considered to be non vesting conditions. Non vesting
conditions are reflected in the fair value of an award and lead to an immediate expensing of an award
unless there are also service and or performance conditions. No expense is recogni ed for awards that do
not ultimately vest because non market performance and or service conditions have not been met. here
awards include a market or non vesting condition, the transactions are treated as vested irrespective ofwhether the market or non vesting condition is satisfied, provided that all other performance and orservice conditions are satisfied. hen the terms of an equity settled award are modified, the minimum
expense recogni ed is the grant date fair value of the unmodified award, provided the original vestingterms of the award are met. An additional expense, measured as at the date of modification, is recogni ed
for any modification that increases the total fair value of the share based payment transaction, or is*SGVFS187254*

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2122otherwise beneficial to the employee. here an award is cancelled by the roup or by the counterparty,
any remaining element of the fair value of the award is expensed immediately through profit or loss.
hen the equity settled transactions vest immediately but the grant date is not yet determined as ofreporting date, the roup recogni es the expense and the corresponding increase in equity using theestimated grant date fair value as of reporting date. Subsequently, once the grant date is determined, theroup revises the estimate based on the actual grant date fair value.
Provisions and Contingencies
Provisions are recogni ed when the roup has a present obligation (legal or constructive) as a result of apast event and it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. here theroup expects some or all of a provision to be reimbursed, for example, under an insurance contract, thereimbursement is recogni ed as a separate asset but only when the reimbursement is virtually certain.
The expense relating to any provision is presented in the statement of income, net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre tax rate that reflects current market assessments of the time value ofmoney and, where appropriate, the risks specific to the liability. here discounting is used, the increasein the provision due to the passage of time is recogni ed as an interest expense.
Contingent liabilities are not recogni ed in the financial statements but are disclosed, unless thepossibility of an outflow of resources embodying economic benefits is remote. Contingent assets are notrecogni ed but are disclosed in the financial statements when an inflow of economic benefits is probable.
Income Taxes
urrent tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected tobe recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute theamount are those that are enacted or substantively enacted as of the reporting date. Management
periodically evaluates positions taken in the tax return with respect to situations in which applicable tax
regulations are sub ect to interpretations and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at thereporting date between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes.
Deferred tax liabilities are recogni ed for all taxable temporary differences. Deferred tax assets arerecogni ed for all deductible temporary differences, carry forward of unused tax credits from the excess
of minimum corporate income tax (MCIT) over the regular corporate income tax (RCIT), and unused net
operating loss carryover (N C ), to the extent that it is probable that sufficient taxable profit will beavailable against which the deductible temporary differences and carry forward of unused tax credits
from MCIT and unused N C can be utili ed. Deferred tax, however, is not recogni ed on temporary
differences that arise from the initial recognition of an asset or liability in a transaction that is not abusiness combination and, at the time of the transaction, affects neither the accounting income nor
taxable income.

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Deferred tax liabilities are not provided on non taxable temporary differences associated withinvestments in domestic subsidiaries and associates.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of thedeferred tax asset to be utili ed. nrecogni ed deferred tax assets are reassessed at each reporting date
and are recogni ed to the extent that it has become probable that future taxable profit will allow thedeferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are applicable to the period when theasset is reali ed or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Current tax and deferred tax relating to items recogni ed directly in equity is also recogni ed in equity
and not in the statement of income.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and deferred taxes relate to the same taxable entity and thesame taxation authority.
Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income for the year by the weighted average
number of common shares outstanding during the year after giving retroactive effect to stock splits, stock
dividends declared and stock rights exercised during the year, if any.
The Parent Company computes diluted EPS when there are outstanding dilutive potential commonshares. Diluted EPS is computed by ad usting both the net income for the year and the weighted average
number of common shares outstanding during the year with the impact of the dilutive potential common
stock issuance transaction.
Dividends on Common Shares
Dividends on common shares are recogni ed as a liability and deducted from equity when approved by
the respective shareholders of the Parent Company and its subsidiaries. Dividends declared during theyear that are approved after the reporting date are dealt with as an event after the reporting date.
Segment Reporting
The roup9s operating businesses are organi ed and managed separately according to the nature of the
products and services provided, with each segment representing a strategic business unit that offers
different products and serves different markets. Financial information on business segments is presented
in Note 32. The roup9s revenue producing assets are located in the Philippines (i.e., one geographicallocation). Therefore, geographical segment information is no longer presented.
Fiduciary Activities
Assets and income arising from fiduciary activities together with related undertakings to return such
assets to customers are excluded from the financial statements where the Parent Company acts in afiduciary capacity such as nominee, trustee, or agent.

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Events after the Reporting Period
Any post year end events that provide additional information about the roup9s position at the reporting
date (ad usting event) are reflected in the roup9s financial statements. Post year end events that are not
ad usting events, if any, are disclosed when material to the financial statements.
tan ar I et ot et ffe ti e
There are new PFRSs, amendments, interpretation and annual improvements, to existing standards which
are effective for annual periods subsequent to 2023. The roup will adopt the following relevant
pronouncements in accordance with their transitional provisions when they become effective and, unlessotherwise stated, none of these are expected to have significant impact on the roup9s financial
statements:
Effecti e beginning on or after anuar§

Amendments to PAS 1

lassification of Liabilities as urrent or on current

The amendments clarify:o That only covenants with which an entity must comply on or before reporting date will affect aliability9s classification as current or non current.
o That classification is unaffected by the likelihood that an entity will exercise its deferral right.
o That only if an embedded derivative in a convertible liability is itself an equity instrument would
the terms of a liability not impact its classification.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024 andmust be applied retrospectively.
§

Amendments to PFRS 1 Lease Liabilit in a Sale and Leasebac
The amendments specify how a seller lessee measures the lease liability arising in a sale andleaseback transaction in a way that it does not recogni e any amount of the gain or loss that relates tothe right of use retained.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024 andmust be applied retrospectively. Earlier adoption is permitted and that fact must be disclosed.

§

Amendments to PAS 7 and PFRS 7 Disclosures Su lier inance Arrangements
The amendments specify disclosure requirements to enhance the current requirements, which areintended to assist users of financial statements in understanding the effects of supplier financearrangements on an entity9s liabilities, cash flows and exposure to liquidity risk.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024.
Earlier adoption is permitted and that fact must be disclosed.

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Effecti e beginning on or after anuar§

PFRS 17, Insurance ontracts
PFRS 17 is a comprehensive new accounting standard for insurance contracts covering recognition
and measurement, presentation and disclosure. nce effective, PFRS 17 will replace PFRS 4,
Insurance ontracts. This new standard on insurance contracts applies to all types of insurance
contracts (i.e., life, non life, direct insurance and re insurance), regardless of the type of entities thatissue them, as well as to certain guarantees and financial instruments with discretionary participation
features. A few scope exceptions will apply.
The overall ob ective of PFRS 17 is to provide an accounting model for insurance contracts that ismore useful and consistent for insurers. In contrast to the requirements in PFRS 4, which are largely
based on grandfathering previous local accounting policies, PFRS 17 provides a comprehensivemodel for insurance contracts, covering all relevant accounting aspects. The core of PFRS 17 is thegeneral model, supplemented by:§§

A specific adaptation for contracts with direct participation features (the variable fee approach)
A simplified approach (the premium allocation approach) mainly for short duration contracts

n December 15, 2021, the FRSC amended the mandatory effective date of PFRS 17 fromJanuary 1, 2023 to January 1, 2025. This is consistent with Circular etter No. 2020 2 issued by the
Insurance Commission which deferred the implementation of PFRS 17 by two (2) years after its
effective date as decided by the IASB.
PFRS 17 is effective for reporting periods beginning on or after January 1, 2025, with comparative
figures required. Early application is permitted.
§

Amendments to PAS 21 Lac of exc angeabilit
The amendments specify how an entity should assess whether a currency is exchangeable and how it
should determine a spot exchange rate when exchangeability is lacking.
The amendments are effective for annual reporting periods beginning on or after January 1, 2025.
Earlier adoption is permitted and that fact must be disclosed. hen applying the amendments, anentity cannot restate comparative information.

Deferred effecti it§ Amendments to PFRS 10, onsolidated inancial Statements, and PAS 28, Sale or ontribution ofAssets between an In estor and its Associate or oint enture
The amendments address the conflict between PFRS 10 and PAS 28 in dealing with the loss ofcontrol of a subsidiary that is sold or contributed to an associate or oint venture. The amendments
clarify that a full gain or loss is recogni ed when a transfer to an associate or oint venture involves abusiness as defined in PFRS 3. Any gain or loss resulting from the sale or contribution of assets that
does not constitute a business, however, is recogni ed only to the extent of unrelated investors9
interests in the associate or oint venture.

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252n January 13, 201 , the Financial and Sustainability Reporting Standards Council deferred theoriginal effective date of January 1, 201 of the said amendments until the IASB completes its
broader review of the research pro ect on equity accounting that may result in the simplification of
accounting for such transactions and of other aspects of accounting for associates and oint ventures.
3.

i nifi ant

o ntinment antimateThe preparation of the financial statements in accordance with PFRS requires the roup to makeudgments and estimates that affect the reported amounts of assets, liabilities, income, and expenses anddisclosure of contingent assets and contingent liabilities at reporting date. Future events may occur
which will cause the udgments and assumptions used in arriving at the estimates to change. The effects
of any change in udgments and estimates are reflected in the financial statements as they become
reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable under thecircumstances.
Judgmentsa
air alue of financial instruments
here the fair values of financial assets and financial liabilities recorded on the balance sheet or
disclosed in the notes cannot be derived from active markets, they are determined using discounted
cash flow model, incorporating inputs such as current market rates of comparable instruments. The
carrying values and corresponding fair values of financial instruments, as well as the manner inwhich fair values were determined, are discussed in more detail in Note 5.
bontingencies
The roup is currently involved in various legal proceedings. The estimate of the probable costs forthe resolution of these claims has been developed in consultation with outside counsel handling theroup9s defense in these matters and is based upon an analysis of potential results. The roup
currently does not believe that these proceedings will have a material adverse effect on the financial
statements (Note 31).

c

E aluation of business model in managing financial assets
The roup manages its financial assets based on business models that maintain an adequate level offinancial assets to match its expected cash outflows, largely arising from customers9 withdrawals andcontinuing loan disbursements to borrowers, while maintaining a strategic portfolio of financial assets
for investment and trading activities consistent with its risk appetite.
The roup developed business models which reflect how it manages its portfolio of financial
instruments. In determining the classification of a financial instrument under PFRS 9, the roup
evaluates which business model a financial asset or a portfolio of financial assets belong to, taking
into consideration the ob ectives of each business model established by the roup, various risks andkey performance indicators being reviewed and monitored by responsible officers, as well as themanner of compensation for them. The roup also considers the frequency, value, reasons, andtiming of past sales and expectation of future sales activity in this evaluation.

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In addition, PFRS 9 emphasi es that if more than an infrequent and more than an insignificant sale ismade out of a portfolio of financial assets carried at amorti ed cost, an entity should assess whether
and how such sales are consistent with the ob ective of collecting contractual cash flows. In making
this udgment, the roup considers certain circumstances to assess that an increase in the frequency
and value of sales of financial instruments in a particular period is not necessarily inconsistent with aheld to collect business model if the roup can explain the reasons for those sales and why thosesales do not reflect a change in the roup9s ob ective for the business model.
The business model assessment is based on reasonably expected scenarios without taking worst caseor stress case scenarios into account. If cash flows, after initial recognition, are reali ed in a way thatis different from the roup9s original expectations, the roup does not change the classification of
the remaining financial assets held in that business model but incorporates such information whenassessing newly originated or newly purchased financial assets going forward unless a change inbusiness model has taken place, in such case, reclassification is necessary.
In 2023, 2022, and 2021, investment securities at amorti ed cost held by the Parent Company were
either redeemed or sold. The disposals were assessed by the Parent Company as not inconsistent withthe portfolios9 business models considering the conditions and reasons for which the disposals were
made. Further, the disposals did not result in a change in business model and the remaining securities
in the affected portfolios continue to be accounted for at amorti ed cost. The details of and thereasons for the disposals and redemptions are disclosed in Note 9.
dTesting t e cas flow c aracteristics of financial assets
In determining the classification of financial assets under PFRS 9, the roup assesses whether thecontractual terms of the financial assets give rise on specified dates to cash flows that are SPPI on theprincipal amount outstanding, with interest representing time value of money and credit risk
associated with the principal amount outstanding. The assessment as to whether the cash flows meet
the test is made in the currency in which the financial asset is denominated. Any other contractual
term that changes the timing or amount of cash flows (unless it is a variable interest rate that
represents time value of money and credit risk), i.e., cash flows that are non SPPI, does not meet theamorti ed cost and FV CI criteria. In cases where the relationship between the passage of time andthe interest rate of the financial instrument may be imperfect, known as modified time value ofmoney, the roup assesses the modified time value of money feature to determine whether thefinancial instrument still meets the SPPI criterion. The ob ective of the assessment is to determine
how different the undiscounted contractual cash flows could be from the undiscounted cash flows thatwould arise if the time value of money element was not modified (the benchmark cash flows). If theresulting difference is significant, the SPPI criterion is not met. In view of this, the roup considers
the effect of the modified time value of money element in each reporting period and cumulatively
over the life of the financial instrument.

eedge accounting
In 2020, the Parent Company designated the hedge relationship between its floating rate bondpayable and an interest rate swap as a cash flow hedge. In 2021, the Parent Company designated thehedge relationships between (i) the interest rate risk component of its Treasury time deposits andRetail Banking Business Segment (RBB) time deposits and (ii) interest rate swaps as cash flow
hedges. In 2022, the Parent Company designated the hedge relationship between (i) the foreignexchange risk component of certain foreign exchange spot transactions and of future interest
payments and (ii) and the spot element of certain foreign exchange forward contracts. In 2023, the*SGVFS187254*

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28
Parent Company pre terminated the floating rate bond payable due to existing market conditions.
Consequently, this resulted to the discontinuance of the hedge relationship between the floating ratebond payable and the interest rate swap as a cash flow hedge.
The Parent Company9s hedge accounting policies include an element of udgment and estimation, inparticular in respect of the existence of highly probable cash flows for inclusion within the cash flow
hedge. Estimates of future interest rates and the general economic environment will influence theavailability and timing of suitable hedged items, with an impact on the effectiveness of the hedge
relationships. Details of the Parent Company9s hedging transactions are described in Note 2 .
The Parent Company applies the temporary reliefs provided by the IB R reform Phase 1
amendments, which enable its hedge accounting to continue during the period of uncertainty, before
the replacement of an existing interest rate benchmark with an alternative nearly RFR. The reliefs
end when the Parent Company udges that the uncertainty arising from IB R reform is no longer
present for the hedging relationships referenced to IB Rs. This applies when the hedged item has
already transitioned from IB R to S FR and also to exposures that have transitioned or willtransition via fallback to S FR when IB R ceases. The one week and two month IB R ceasedon January 1, 2022. The overnight and 1 , 3 , , and 12 month SD IB R ceased on July 1, 2023.
The IB R reform Phase 2 provides temporary reliefs to enable the Parent Company9s hedging
relationships to continue upon the replacement of an existing interest rate benchmark with an RFR.
In view of the reliefs, the Parent Company designated S FR as the new hedged risk component forthese hedging relationships to replace IB R starting July 1, 2023. The Parent Company deemed
S FR to be a separately identifiable risk component since the Parent Company has a reasonable
expectation that the RFR will meet the <separately identifiable= requirement within 24 months fromits designation. The adoption of transition changes in interest rate benchmark did not have a material
impact on the Parent Company9s hedges.
Estimatesa

Ex ected credit losses on financial assets and commitments
The roup reviews its debt financial assets and commitments at each reporting date to determine theamount of EC to be recogni ed in the balance sheet and any changes thereto in the statement ofincome. In particular, udgments and estimates by management are required in determining:
•
•
•
•
•
•

whether a financial asset has had a significant increase in credit risk since initial recognition
whether a default has taken place and what comprises a default
macro economic factors that are relevant in measuring a financial asset9s probability of default aswell as the roup9s forecast of these macro economic factors
probability weights applied over a range of possible outcomes
sufficiency and appropriateness of data used and relationships assumed in building thecomponents of the roup9s expected credit loss models andthe measurement of the exposure at default for unused commitments on which an expected credit
loss should be recogni ed and the applicable loss rate.

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The related allowance for credit losses of financial assets and commitments of the roup and the
Parent Company are disclosed in Notes 1 and 21, respectively.
b

Im airment of goodwill and branc licenses
The roup performs impairment review of goodwill and branch licenses with indefinite useful life
annually or more frequently if events or changes in circumstances indicate that the carrying value
may be impaired. Impairment is determined for goodwill and branch licenses by assessing therecoverable amount of the cash generating unit (C ) to which the goodwill and branch licenses are
attributed. The recoverable amount of the C
is determined based on a value in use (VI )calculation using cash flow pro ections from financial budgets approved by senior management
covering a five year period. For VI , the roup estimates the discount rate used for the computationof the net present value by reference to the weighted cost of capital of comparable banks. The
impairment assessment process requires significant udgment and is based on assumptions,specifically loan and deposit growth rates, discount rate, and the long term growth rates.
here the recoverable amount is less than the carrying amount of the C
to which goodwill andbranch licenses have been allocated, an impairment loss is recogni ed immediately in the statementof income. Impairment losses relating to goodwill cannot be reversed for subsequent increases in its
recoverable amount in future periods. The carrying values of the roup9s goodwill and branchlicenses are disclosed in Note 14.

c

Present alue of defined benefit obligation and retirement ex ense
The determination of the roup9s net present value of defined benefit obligation and annual
retirement expense is determined using actuarial valuations. An actuarial valuation involves making
assumptions that may differ from actual developments in the future. These assumptions include,
among others, discount rates and salary rates.
The assumed discount rates were determined using the market yields on Philippine government
bonds with terms consistent with the expected employee benefit payout as of the reporting date. The
salary increase rates were based on the roup9s expectations of future salary increases, which take
into account the inflation, seniority and promotion.
The present value of the defined benefit obligation, including the details of the assumptions used in
the calculation, are disclosed in Note 25.

dRecognition of deferred income taxes
Deferred tax assets are recogni ed for deductible temporary differences to the extent that it isprobable that taxable profit will be available against which the losses can be utili ed. Management
discretion is required to determine the amount of deferred tax assets that can be recogni ed, based on
the forecasted level of future taxable profits and the related future tax planning strategies. ey
assumptions used in forecast of future taxable income include loan portfolio and deposit growth rates.
The roup believes it will be able to generate sufficient taxable income in the future to utili e its
recorded deferred tax assets. Taxable income is sourced mainly from interest income from lending
activities and earnings from service charge, fees, commissions, and trust activities.
The recogni ed and unrecogni ed deferred tax assets are disclosed in Note 28.

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30

 Im airment on ot er non financial assets
The roup assesses impairment on its non financial assets (e.g., investment properties and bankpremises, furniture, fixtures and equipment) and considers the following impairment indicators:•••

significant underperformance relative to expected historical or pro ected future operating results
significant changes in the manner of use of the acquired assets or the strategy for overallbusiness andsignificant negative industry or economic trends.

An impairment loss is recogni ed whenever the carrying amount of an asset exceeds its recoverable
amount. Except for investment properties where recoverable amount is determined based on fairvalue less cost to sell, the recoverable amount of all other non financial assets is determined based on
the asset9s value in use whose computation considers the present value of estimated future cash flows
expected to be generated from the continued use of the asset. The roup is required to makeestimates and assumptions that can materially affect the carrying amount of the asset being assessed.
The carrying values of the roup9s non financial assets are disclosed in Notes 12 and 13.
4.

inan ia In tr ment Cate orie
The following table presents the total carrying amount of the roup9s and the Parent Company9s financial
instruments per category:
26*6,2*4*::.;:
/A6/<2=B63@1/A67B3;A7</<17/:/AA3BA/B,*&"
3@7D/B7D31=<B@/1BA23A75</B32/A63253
7</<17/:/AA3BA/B,% 7</<17/:/AA3BA/B/;=@B7H321=ABC34@=;)&C34@=;=B63@0/<9A<B3@0/<9:=/<A@3137D/0:3A/<2)&+(<D3AB;3<BA31C@7B73A/B/;=@B7H321=AB
"=/<A/<2@3137D/0:3A
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*SGVFS187254*

30

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

31

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The roup has assets and liabilities in the roup and Parent Company balance sheets that are measured atfair value on a recurring and non recurring basis after initial recognition. Recurring fair value
measurements are those that another PFRS requires or permits to be recogni ed in the balance sheet at theend of each financial reporting period. These include financial assets and liabilities at FVTP andfinancial assets at FV CI.
As of December 31, 2023 and 2022, except for the following financial instruments, the carrying values of
the roup9s and the Parent Company9s financial assets and liabilities as reflected in the balance sheetsand related notes approximate their respective fair values:
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)/:3A1=<B@/1BA@3137D/0:3$=B3 
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76:742-*;.-*99?260(*4<.*29(*4<.




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C HI NA BANK I NG COR P O R AT I O N

31

32



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The methods and assumptions used by the roup and Parent Company in estimating the fair values of thefinancial instruments follow:
as and ot er cas items due from SP and ot er ban s interban loans recei able and SP RA andaccrued interest recei able The carrying amounts approximate their fair values in view of the relatively
short term maturities of these instruments.
Debt securities Fair values are generally based on quoted market prices. If the market prices are notreadily available, fair values are estimated using directly or indirectly either values obtained fromindependent parties offering pricing services or ad usted quoted market prices of comparable investments
or using the discounted cash flow methodology.
E uit securities For publicly traded equity securities, fair values are based on quoted prices. For
unquoted equity securities, remeasurement to their fair values is not material to the financial statements.


Loans and recei ables and sales contracts recei able S R included in ot er assets Fair values ofloans and receivables and SCR are estimated using the discounted cash flow methodology, where future
cash flows are discounted using the roup9s current incremental lending rates for similar types of loans
and receivables.
Accounts recei able R
I and ot er financial assets included in ot er assets 3 uoted market prices
are not readily available for these assets. These are reported at cost and are not significant in relation to
the roup9s total portfolio of financial assets.

*SGVFS187254*

32

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

33
Deri ati e instruments included under TPL and designated as edges Fair values are estimatedbased on discounted cash flows, using prevailing interest rate differential and spot exchange rates.
De osit liabilities time demand and sa ings de osits Fair values of time deposits are estimated using
the discounted cash flow methodology, where future cash flows are discounted using the roup9s current
incremental borrowing rates for similar borrowings and with maturities consistent with those remaining
for the liability being valued. For demand and savings deposits, carrying amounts approximate fairvalues considering that these are currently due and demandable.


onds a able and ills a able 3 nless quoted market prices are readily available, fair values are
estimated using the discounted cash flow methodology, where future cash flows are discounted using thecurrent incremental borrowing rates for similar borrowings and with maturities consistent with thoseremaining for the liability being valued.
Manager s c ec s and accrued interest and ot er ex enses
due to the short term nature of the accounts.

Carrying amounts approximate fair valuest er liabilities Carrying amounts approximate fair values due to the short term nature of the accounts.
Fair Value ierarchy
The roup uses the following hierarchy for determining and disclosing the fair value of assets andliabilities by valuation technique:Le el : quoted prices in active markets for identical assets or liabilities
Le el : inputs other than quoted prices included in evel 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices) andLe el : inputs that are not based on observable market data or unobservable inputs.
As of December 31, 2023 and 2022, the fair value hierarchy of the roup9s and the Parent Company9s
assets and liabilities are presented below:
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C HI NA BANK I NG COR P O R AT I O N

33

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*SGVFS187254*

34

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

35



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35

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There were no transfers into and out of evel 3 fair value measurements in 2023 and 2022.
The inputs used in the fair value measurement based on evel 2 are as follows:o ernment securities interpolated rates based on market rates of benchmark securities
Deri ati e assets and liabilities fair values are calculated by reference to the prevailing interest
differential and spot exchange rate as of the reporting date, taking into account the remaining term tomaturity of the derivative assets and liabilities.

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37
Inputs used in estimating fair values of financial instruments carried at amorti ed cost and categori ed
under evel 3 include risk free rates and applicable risk premium.
The fair values of the roup9s and Parent Company9s investment properties have been determined by theappraisal method by independent external and in house appraisers based on highest and best use of theproperty being appraised. Valuations were derived on the basis of recent sales of similar properties in thesame areas as the investment properties and taking into account the economic conditions prevailing at thetime the valuations were made and comparability of similar properties sold with the property being
valued.
The table below summari es the valuation techniques used and the significant unobservable inputs usedin the valuation for each type of investment properties held by the roup and the Parent Company:
andand and Building

a ation e ni eMarket Data Approachi nifi ant no er a e Inp t
Price per square meter, si e, location,
shape, time element and corner
influence
Market Data Approach and Cost Reproduction Cost New
Approach

Descriptions of the valuation techniques and significant unobservable inputs used in the valuation of theroup and the Parent Company9s investment properties are as follows:
Valuation Techniques
Market Data Approach A process of comparing the sub ect property being appraised to similar
comparable properties recently sold or being offered for sale.
Cost Approach
It is an estimate of the investment required to duplicate the property in its
present condition. It is reached by estimating the value of the building <as if
new= and then deducting the depreciated cost. Fundamental to the Cost
Approach is the estimate of Reproduction Cost New of the improvements.
Significant unobservable inputs
Reproduction Cost New The cost to create a virtual replica of the existing structure, employing thesame design and similar building materials.
Si e

Si e of lot in terms of area. Evaluate if the lot si e of property orcomparable conforms to the average cut of the lots in the area and estimate
the impact of lot si e differences on land value.

Shape

Particular form or configuration of the lot. A highly irregular shape limits
the usable area whereas an ideal lot configuration maximi es the usable areaof the lot which is associated in designing an improvement which conforms
with the highest and best use of the property.

ocationocation of comparative properties whether on a Main Road, or secondary
road. Road width could also be a consideration if data is available. As arule, properties located along a Main Road are superior to properties locatedalong a secondary road.

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38
Significant unobservable inputs
Time Element<An ad ustment for market conditions is made if general property values
have appreciated or depreciated since the transaction dates due to inflation
or deflation or a change in investors9 perceptions of the market over time=.
In which case, the current data is superior to historic data.

.

Discountenerally, asking prices in ads posted for sale are negotiable. Discount is
the amount the seller or developer is willing to deduct from the posted
selling price if the transaction will be in cash or equivalent.

Corner influence

Bounded by two (2) roads.

inan iaiana emente ti e ano i ieThe roup9s activities are principally related to the profitable use of financial instruments. Risks are
inherent in these activities but are managed by the roup through a rigorous, comprehensive, andcontinuous process of identification, measurement, monitoring and mitigation of these risks, partly
through the effective use of risk and authority limits and thresholds, process controls and monitoring, andindependent controls. As reflected in its corporate actions and organi ational improvements, the roup
has placed due importance on expanding and strengthening its risk management process and considers it
as a vital component to the roup9s continuing profitability and financial stability. Central to theroup9s risk management process is its adoption of a risk management program intended to avoid
unnecessary risks, manage and mitigate inherent risks, and maximi e returns from taking acceptable risks
necessary to sustain its business viability and good financial position in the market.
The key financial risks that the roup faces are: credit risk, market risk, and liquidity risk. The roup9s
risk management ob ective is primarily focused on controlling and mitigating these risks. The Parent
Company and its subsidiaries manage their respective financial risks separately. The subsidiaries,
particularly CBSI, have their own risk management processes but are structured similar to that of the
Parent Company. To a large extent, the respective risk management programs and ob ectives are thesame across the roup. The severity of risk, materiality, and regulations are primary considerations indetermining the scope and extent of the risk management processes put in place for the subsidiaries.
   ! !The B D of the Parent Company is ultimately responsible for the oversight of the Parent Company9s risk
management processes. n the other hand, the risk management processes of the subsidiaries are theseparate responsibilities of their respective B Ds. The B D of the Parent Company created a separateboard level independent committee with explicit authority and responsibility for managing andmonitoring risks.
The B D has delegated to the Risk versight Committee (R C) the formulation and supervision of therisk management process which includes, among others, determining the appropriate risk mitigating
strategies and operating principles, adoption of industry standards, development of risk metrics,
monitoring of key risk indicators, and the imposition of risk parameters. The R C is composed of threemembers of the B D, all of whom are independent directors.

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39
The Risk Management roup (RM ) is the operating unit of the R C primarily responsible for the
implementation of the risk management strategies approved by the Board of Directors. The
implementation cuts across all departments of the Parent Company and involves all of the Parent
Company9s financial instruments, whether <on books= or <off books=. The RM is likewise responsible
for monitoring the implementation of specific risk control procedures and enforcing compliance thereto.
The RM is also directly involved in the day to day monitoring of material risks ensuring that the Parent
Company, in its transactions and dealings, engages only in risk taking activities duly approved by the
R C. The RM also ensures that relevant information is accurately and completely captured on a timely
basis in the management reporting system of the Parent Company. The RM is headed by the Chief Risk
fficer (CR ) who reports the results of risk measurements to the R C.
Apart from RM , each business unit has created and put in place various process controls which ensurethat all the external and internal transactions and dealings of the unit are in compliance with the unit9s
risk management ob ectives.
The Internal Audit Division also plays a crucial role in risk management primarily because it isindependent of the business units and reports exclusively to the Audit Committee which, in turn, iscomprised of independent directors. The Internal Audit Division focuses on ensuring that adequate
controls are in place and on monitoring compliance to controls. The regular audit covers all processes
and controls, including those under the risk management framework handled by the RM . The audit ofthese processes and controls is undertaken regularly. The audit results and exceptions, including
recommendations for their resolution or improvement, are discussed initially with the business units
concerned before these are presented to the Audit Committee.
    The CR reports to the R C and is a resource of the Credit Committee (CreCom), Asset iability
Committee (A C ), perations Committee ( psCom) and Technology Steering Committee (TSC). The
CR reports on key risk indicators and specific risk management issues that would need resolution fromtop management. This is undertaken after the risk issues and key risk indicators have been discussedwith the business units concerned. The RM 9s function, particularly, that of the CR , as well as theBoard9s risk oversight responsibilities are articulated in the risk management manual based on therequirements of BSP Circular No. 971, uidelines on Ris o ernance.
The key risk indicators were formulated on the basis of the financial risks faced by the Parent Company.
These indicators contain information from all business units that provide measurements on the level ofthe risks taken by the Parent Company in its products, transactions, and financial structure. Amongothers, the report on key risk indicators includes information on the Parent Company9s aggregate credit
exposure, credit metric forecasts, hold limit exceptions, Value at Risk (VaR), Maximum Cumulative
utflow (MC ) and Earnings at Risk (EAR) analysis, utili ation of market and credit limits andthresholds, liquidity risk limits and ratios, overall loan loss provisioning, and risk profile changes. oan
loss provisioning and credit limit utili ation are, however, discussed in more detail in the Credit
Committee. n a monthly basis, detailed reporting of industry, customer, and geographic risks is
included in the discussion with the R C. A comprehensive risk report is presented to the B D on aperiodic basis for an overall assessment of the level of risks taken by the Parent Company. n the other
hand, the Chief Audit Executive reports to the Audit Committee on a monthly basis on the results ofbranch or business unit audits and for the resolution of pending but important internal audit issues.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

39

40   The Parent Company uses derivatives to manage exposures to financial instruments resulting fromchanges in interest rates and foreign currencies exposures. owever, the nature and extent of use of thesefinancial instruments to mitigate risks are limited to those allowed by the BSP for the Parent Company
and its subsidiaries.
To further mitigate risks throughout its different business units, the Parent Company formulates risk
management policies and continues to improve its existing policies. These policies further serve as theframework and set of guidelines in the creation or revisions of operating policies and manuals for eachbusiness unit. In the process design and implementation, preventive controls are preferred over detection
controls. Clear delineation of responsibilities and separation of incompatible duties among officers andstaff, as well as, among business units are reiterated in these policies. To the extent possible, reporting
and accounting responsibilities are segregated from units directly involved in operations and frontline
activities (i.e., players must not be scorers). This is to improve the credibility and accuracy ofmanagement information. Any inconsistencies in the operating policies and manuals with the risk
framework created by the RM are taken up and resolved in the R C.
The perational Risk Assessment Program and IT Risk Frameworks require the Parent Company toundergo periodic operational risk assessment and for all business units allied businesses to conduct risk
and control self assessments. These enable determination of priority risk areas, assessment of mitigating
controls in place, and institutionali ation of additional measures to ensure both a controlled operating
environment and proper handling of IT risk exposures. RM maintains and updates the Parent
Company9s Centrali ed oss Database wherein all reported incidents of losses shall be encoded to enableassessment of weaknesses in the processes and come up with viable improvements to avoid recurrence.
Monitoring and controlling risks are primarily performed based on various limits and thresholds
established by the top management covering the roup9s transactions and dealings. These limits andthresholds reflect the roup9s business strategies and market environment, as well as the levels of risks
that the roup is willing to tolerate, with additional emphasis on selected industries. In addition, theroup monitors and measures the overall risk bearing capacity in relation to the aggregate risk exposure
across all risk types and activities.
iquidity risk, interest rate risk, and market risk exposures are measured and monitored through thereports generated by a cloud based automated system (Ambit Focus system).
BSP issued Circular No. 39 dated January 15, 2009 which mandated the use of the Internal Capital
Adequacy Assessment Process (ICAAP) by all universal and commercials banks to determine theirminimum required capital relative to their business risk exposures. In this regard, the Board approved theengagement of the services of a consultant to assist in the bank wide implementation and embedding of
the ICAAP, as provided for under Pillar 2 of Basel II and BSP Circular No. 39.

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

41n April 5, 2023, the B D approved the 2023 ICAAP document for submission to the BSP. The Pillar 1
Plus approach used the Pillar 1 capital as the baseline. The process of allocating capital for all types ofrisks above the Pillar 1 capital levels includes quantification of capital buffer for Pillar 2 risks undernormal business cycle condition, in addition to the quantification based on the results of the Integrated
Stress Test (IST). The adoption of the IST allows the Parent Company to quantify its overallvulnerability to market shocks and operational losses in a collective manner driven by events rather thanin silo. The capital assessment in the document discloses that the roup and the Parent Company has
appropriate and sufficient level of internal capital.
The Parent Company submitted its annually updated ICAAP document, in compliance with BSP
requirements, on March 31, 2023.
! ! %  
In the aftermath of the pandemic in the past three years, the roup has built its business resilience aroundpolicies that would ensure that the roup is able to service and respond to the requirements of its clients,
to perform its functions as a Domestic Systemically Important Bank (DSIB), and to continue to fulfill thetransaction cycle in its operations.
The roup implemented <The New Normal ork Force and ork Management Plan for the C VID 19
Pandemic= to provide general direction and guidance in sustaining the operations of the roup throughthe pandemic. The plan put in place health and safety protocols which along with the implementation of
the buddy branch system ensured the uninterrupted delivery of services. n April 1, 2022, selectpersonnel from ead ffice and subsidiaries were transferred to the SM Mega Tower extension officeproviding the different business units with the capacity of splitting their teams and operate in two
different sites to make certain that the services continue in the event of business interruptions brought
about by a pandemic or similar occurrence. Changes in the processes of business units arising from theimplementation of the plan and the establishment of the extension office are continuously updated andincorporated in the risk and control self assessment and business impact analysis tools to reflect thechanges in the risk profile. Appropriate measures are also updated and implemented in light of thesechanges.
  
Credit risk is the risk of financial loss on account of a counterparty to a financial product failing to honor
its debt obligation. The roup faces potential credit risks every time it extends funds to borrowers,
commits funds to counterparties, guarantees the paying performance of its clients, invests funds to issuers(i.e., investment securities issued by either sovereign or corporate entities), or enters into either market
traded or over the counter derivatives, through implied or actual contractual agreements (i.e., on or offbalance sheet exposures). The roup manages its credit risk at various levels (i.e., strategic level,
portfolio level down to individual credit or transaction).
The roup established risk limits and thresholds for purposes of monitoring and managing credit risk
from individual counterparties and or groups of counterparties, ma or industries, as well as countries. It
also conducts periodic assessment of the creditworthiness of its counterparties. In addition, the roup
obtains collateral where appropriate, enters into master netting agreements and collateral arrangementswith counterparties, and limits the duration of exposures.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

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42
RM continues to run approximations of the increase in NP under various scenarios, presenting theresults to the Risk versight Committee. In addition to factoring in the expert udgment of the lending
units, RM has made ad ustments to the assumptions to reflect the improving economic conditions. This
includes recogni ing that borrowers severely affected by the pandemic have already been identified andbooked as non performing. The status of accounts that underwent restructuring or with terms
modification is consistently monitored, with particular focus on those with high risk ratings considered in
the NP approximations. Furthermore, the assumptions include accounts that may potentially default on
their debt obligations based on regulatory assessments.
      
The Parent Company employs four credit risk rating models for diverse segments, covering corporate
borrowers, retail small and medium entities and individual accounts (non consumer), financial
institutions, and sovereign counterparties. Additionally, it utili es bureau credit scores for consumer loan
products, including housing loans, auto loans, Contract to Sell (CTS) without recourse, and credit cards,
to assess credit risk comprehensively.
The assessment of credit risk for corporate borrowers with total assets, total facilities, or total credit
exposures amounting to at least P15 million is conducted using the Internal Credit Risk Rating System(ICRRS). This model adheres to the technical specifications outlined in BSP Circular 855, uidelines on
Sound redit Ris Management Practices. The ICRRS comprises two components, namely: a) Borrower
Risk Rating, providing an evaluation of the creditworthiness of the borrower, without considering the
proposed facility and security arrangements, and b) oan Exposure Rating, offering an assessment of the
proposed facilities as mitigated or enhanced by security collateral arrangements.
For retail small and medium entities and individual non consumer loan accounts, credit risk is evaluatedthrough the Borrower Credit Score (BCS). In addition, the roup has implemented a risk rating systemdesigned to specifically assess Philippine universal, commercial, thrift, rural, and cooperative banks aswell as foreign financial institutions. Furthermore, it has introduced a Sovereign Risk Rating scorecard togauge a country9s strength, considering factors such as economic fundamentals, fiscal policy, institutional
strength, and vulnerability to extreme events.
For consumer loans, the Parent Company recently implemented the use of Transunion credit score (T )as the primary scorecard for assessing credit in housing loans and CTS without recourse applications.
The T score was initially adopted for credit cards, wherein it is utili ed to screen applications in linewith the Bank9s credit acceptance criteria. Consistent with the approach taken for other consumer loan
products, the Parent Company is currently in the process of updating its policies to incorporate the use of
the T credit score for auto loans in the credit evaluation process.
The roup regularly monitors the performance of its rating models and scorecards. Throughout the years,
it has partnered with third party consultants such as Moody9s Analytics for model validation, model
recalibration, and knowledge transfer pro ects. Internally, a comprehensive review of the performance ofthe models is conducted, sub ecting the models to various statistical metrics, ensuring the reliability ofthese tools in the roup9s credit evaluation process. Validation results are reported to the Risk versightCommittee.
To manage model risks effectively, the roup has crafted a Model Risk Policy for Credit Risk. This
policy closely aligns with the principles laid out in the <Supervisory uidance on Model Risk
Management= issued by the ffice of the Comptroller of the Currency ( CC), an independent bureau of*SGVFS187254*

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

43
the .S. Department of the Treasury, and satisfies the validation requirements set by the BSP for internalrating systems outlined in BSP Circular 855. The framework is designed to manage risks associated withthe use of models within the organi ation, promoting confidence and reliability of model outputs, andsupporting effective risk management practices. It serves as a guiding document to ensure models aredeveloped, validated, implemented, and monitored in a consistent, transparent, and controlled manner.
Moreover, it establishes a governance framework that clearly defines the roles, responsibilities, andaccountabilities of the stakeholders involved in the model life cycle.
        
Concentrations arise when a number of counterparties are engaged in similar business activities, or
activities in the same geographic region, or have similar economic features that would cause their ability
to meet contractual obligations to be similarly affected by changes in economic, political or otherconditions. Concentrations indicate the relative sensitivity of the Parent Company9s performance todevelopments affecting a particular industry or geographical location.
In order to avoid excessive concentrations of risk, the Parent Company9s policies and procedures include
specific guidelines focusing on maintaining a diversified portfolio. Identified concentrations of credit
risks are controlled and managed accordingly.
The distribution of the roup9s and Parent Company9s assets and liabilities, and credit commitment items
by geographic region as of December 31, 2023 and 2022 (in millions) follows:
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*!#("'&%"'#% ' #*"#%%' #&&&**#"&&'&##!!''%' "&"(&#!!%  ''%&#%'%'% "&('&'""(%"'&&&("'"+%'#!!'!"'&3=5@/>671(357=<&67:7>>7<3AA7/C@=>3
+<7B32)B/B3A
%B63@A

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#*9.6;758*6?
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AA3BA#    #  &            
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"7/07:7B73A =;;7B;3<BA


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   I&   & 

*!#("'&%"'#% ' #*"#%%' #&&&**#"&&'&##!!''%' "&"(&#!!%  ''%&#%'%'% "&('&'""(%"'&&&("'"+%'#!!'!"'&*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

43

44Information on credit concentration as to industry of financial assets (gross of unearned discount andallowance for credit losses) is presented below:
7</<17/:7<B3@;327/@73A
(3/:3AB/B3@3<B7<5/<20CA7<3AAA3@D713A
:31B@717BG5/A/<2E/B3@
#/<C4/1BC@7<5-6=:3A/:3/<2@3B/7:B@/23
*@/<A>=@B/B7=<AB=@/53/<21=;;C<71/B7=<
@BA3<B3@B/7<;3<B/<2@31@3/B7=<11=;;=2/B7=</<24==2A3@D713/1B7D7B73A
#7<7<5/<2?C/@@G7<5
=<AB@C1B7=<&@=43AA7=</:A173<B7471/<2B316<71/:/1B7D7B73A
5@71C:BC@32C1/B7=<&C0:71/2;7<7AB@/B7=</<22343<A3%B63@A7*6:*6-
$.,.2=*+4.:#    
                           #   

76:742-*;.- 
7*6:*6-
26*6,2*4
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;7*63: 7552;5.6;:
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   #    #       A 
   
A
 

  
 

A
       AA       A    

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A 
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A  
 

A
A
 
   A    #      #
   #     #    '%&#"&&'#!"&'%')"&($$#%'&%) '#(&# "#'%')'&
7</<17/:7<B3@;327/@73A
(3/:3AB/B3@3<B7<5/<20CA7<3AAA3@D713A
:31B@717BG5/A/<2E/B3@
*@/<A>=@B/B7=<AB=@/53/<21=;;C<71/B7=<-6=:3A/:3/<2@3B/7:B@/23
#/<C4/1BC@7<5
@BA3<B3@B/7<;3<B/<2@31@3/B7=<11=;;=2/B7=</<24==2A3@D713/1B7D7B73A
=<AB@C1B7=<#7<7<5/<2?C/@@G7<55@71C:BC@3&@=43AA7=</:A173<B7471/<2B316<71/:/1B7D7B73A
2C1/B7=<&C0:71/2;7<7AB@/B7=</<22343<A3%B63@A"=/<A/<2(3137D/0:3A&
      
       
     
  &   7</<17/:
<D3AB;3<BA&        
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=;;7B;3<BA*=B/:&  & 
            
        

    
         
     &  &   

'%&#"&&'#!"&'%')"&($$#%'&%) '#(&# "#'%')'&

*SGVFS187254*

44

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

45



7</<17/:7<B3@;327/@73A
(3/:3AB/B3@3<B7<5/<20CA7<3AAA3@D713A
:31B@717BG5/A/<2E/B3@
#/<C4/1BC@7<5-6=:3A/:3/<2@3B/7:B@/23
*@/<A>=@B/B7=<AB=@/53/<21=;;C<71/B7=<
@BA3<B3@B/7<;3<B/<2@31@3/B7=<11=;;=2/B7=</<24==2A3@D713/1B7D7B73A
#7<7<5/<2?C/@@G7<5
=<AB@C1B7=<&@=43AA7=</:A173<B7471/<2B316<71/:/1B7D7B73A
5@71C:BC@32C1/B7=<&C0:71/2;7<7AB@/B7=</<22343<A3%B63@A7*6:*6-
$.,.2=*+4.:#                           
    #   #*9.6;758*6?
 
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&7;*4#    #    #     #     
A
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 

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A
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

       A        A    A   

 
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
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A    
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    A   
#   #    #     #   '%&#"&&'#!"&'%')"&($$#%'&%) '#(&# "#'%')'&
7</<17/:7<B3@;327/@73A
(3/:3AB/B3@3<B7<5/<20CA7<3AAA3@D713A
:31B@717BG5/A/<2E/B3@
*@/<A>=@B/B7=<AB=@/53/<21=;;C<71/B7=<-6=:3A/:3/<2@3B/7:B@/23
@BA3<B3@B/7<;3<B/<2@31@3/B7=<#/<C4/1BC@7<511=;;=2/B7=</<24==2A3@D713/1B7D7B73A
=<AB@C1B7=<#7<7<5/<2?C/@@G7<5&@=43AA7=</:A173<B7471/<2B316<71/:/1B7D7B73A
5@71C:BC@32C1/B7=<&C0:71/2;7<7AB@/B7=</<22343<A3%B63@A"=/<A/<2(3137D/0:3A& 
 
                 
 & 

&/@3<B=;>/<G"=/<A/<2
7</<17/:
2D/<13A
<D3AB;3<BA
B=/<9A =;;7B;3<BA*=B/:&   & &   &  

 
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I


 I  
  II        I 
   
I     I   II 

I
I
   I
 I
I   
 

I
  
I
I 
  
I   & & 
&  &  
'%&#"&&'#!"&'%')"&($$#%'&%) '#(&# "#'%')'&

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

45

4
$!$!  The tables below provide the analysis of the maximum exposure to credit risk of the roup9s and the
Parent Company9s financial instruments, excluding those where the carrying values as reflected in thebalance sheets and related notes already represent the financial instrument9s maximum exposure to credit
risk, before and after taking into account collateral held or other credit enhancements:
2023

Credit risk e posure relating to on-balance
sheet items are as follows
oans and receivables
Interbank loans receivable and SP RA
Sales contracts receivable

1 991 934 20 2 0
1 612 416
0 324 4201 26 222 0 9 0
A

23 3 4 23

2 0 26 04
12 631 2 0
1 612 416
2 4 9 0 190

Consolidated
2022
ross ma imum
e posure
Credit risk e posure relating to on-balance
sheet items are as follows
oans and receivables
Interbank loans receivable and SP RA
Sales contracts receivable

P699, 9 , 9, 6 ,9 0
1, 06,21
P , 6 ,9 6

et e posure
P 66, 26,6 2
2 , 69,P 9 ,296,1 6

Financial effectof collateral orcreditenhancement
P2 ,06 ,1
1 , 9 , 26
1, 06,21
P2 9,269, 00

2023

Credit risk e posure relating to on-balance
sheet items are as follows
oans and receivables
Interbank loans receivable and SP RA
Sales contracts receivable

663 1 2 149
31 0 6 4
203 033
694 460 36

444 929 4
22 0 9 0A

46 01 46

21 2 2 661
9 66 4203 033
22 442 36*SGVFS187254*

46

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

47
Parent Company
2022
ross ma imum
e posure
Credit risk e posure relating to on-balance
sheet items are as follows
oans and receivables
Interbank loans receivable and SP RA
Sales contracts receivable

P61 ,19 ,2
1, 9 ,9 9
1 0,6 9P6 ,9 , 62

et e posure
P 26, 16, 6
2 , 69,P,0 6,1 1

Financial effectof collateral orcreditenhancement
P1 6, 0,66
12, 2 , 0
1 0,6 9P199, 9, 1

For the roup, the fair values of collateral held for loans and receivables and sales contracts receivableamounted to P521.73 billion and P3.09 billion, respectively, as of December 31, 2023 and P518.85
billion and P2.73 billion, respectively, as of December 31, 2022.
For the Parent Company, the fair values of collateral held for loans and receivables and sales contracts
receivable amounted to P4 9.2 billion and P0. 4 billion, respectively, as of December 31, 2023 andP472. billion and P0.80 billion, respectively, as of December 31, 2022.
The fair values of the financial collaterals held for SP RA are disclosed in Note 35.
Credit risk, in respect of derivative financial products, is limited to those with positive fair values, which
are included under financial assets at FVTP (Note 9). As a result, the maximum credit risk, without
taking into account the fair value of any collateral and netting agreements, is limited to the amounts on
the balance sheet plus commitments to customers such as unused commercial letters of credit,
outstanding guarantees and others as disclosed in Note 31.
    
The amount and type of collateral required depends on an assessment of the credit risk of thecounterparty. uidelines are implemented with regards to the acceptability of types of collateral andvaluation parameters.
The main types of collateral obtained are as follows:•••

For securities lending and reverse repurchase transactions cash or securities
For consumer lending real estate and chattel over vehicle
For corporate lending and commercial lending real estate, chattel over properties, assignment ofdeposits, shares of stocks, bonds, and guarantees

Management requests additional collateral in accordance with the underlying agreement and takes into
consideration the market value of collateral during its review of the adequacy of allowance for credit
losses.
It is the roup9s policy to dispose of repossessed properties in an orderly fashion. The proceeds are used
to reduce or repay the outstanding claim. In most cases, the roup does not occupy repossessed
properties for business use.

*SGVFS187254*

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47

48
 "! To mitigate its credit risks on financial assets, the roup seeks to use collateral, where possible. The
collateral comes in various forms, such as cash, securities, letters of credit guarantees, real estate,receivables, inventories, other non financial assets and credit enhancements such as netting agreements.
Collateral, unless repossessed, is not recorded on the roup9s balance sheet. owever, the fair value ofcollateral affects the calculation of loss allowances. It is generally assessed, at a minimum, at inception
and re assessed on an annual basis. To the extent possible, the roup uses active market data for valuing
financial assets held as collateral. ther financial assets which do not have readily determinable market
values are valued using models. Non financial collateral, such as real estate, is valued based on data
provided by internal or external appraisers.
 ! % oans and Receivables
The credit quality of financial assets is managed by the roup using an internal credit rating system forthe purpose of measuring credit risk in a consistent manner as accurately as possible. The model on risk
ratings is assessed regularly because the roup uses this information as a tool for business and financial
decision making.
It is the Parent Company9s policy to apply the appropriate risk rating model across the credit portfolio.
This facilitates focused management of the applicable risks and the comparison of credit exposures acrossall lines of business, geographic regions and products. The rating system is supported by a variety offinancial analytics, combined with processed market information to provide the main inputs for themeasurement of counterparty risk. All internal risk ratings are tailored to the various categories and arederived in accordance with the Parent Company9s rating policy. The attributable risk ratings are assessed
and monitored regularly.
The rating categories are further described below. Note that for BCS, basis is the mapping of the BCS
Score to the Borrower Risk Rating (BRR).
ig radeThis includes all borrowers whose ratings are considered as ow Risk, indicating a very low probabilityof going into default in the coming year. In terms of borrower credit ratings, these include the following:
IC

•
•
•

•

an C Co ere
BRR 1 (Exceptional)
BRR 2 (Excellent)
BRR 3 (Strong)
BRR 4 ( ood)

enerally, a ow Risk ( igh rade) rating is indicative of a high capacity to fulfill its obligations
supported by robust financials (i.e., profitable, with returns considerably higher than the industry,elevated capacities to service its liabilities), gainful positioning in growing industries (i.e., participation inindustries where conditions are very favorable and in which they are able to get a good share of themarket), and very strong leadership providing clear strategic direction and or excellent training anddevelopment programs.

*SGVFS187254*

48

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

49
Standard rade
This includes all borrowers whose ratings are considered as Moderate Risk and are seen to withstandtypical swings in the economic cycle without going into default. owever, any prolonged unfavorable
economic period would create deterioration that may already be beyond acceptable levels. In terms ofborrower credit ratings, these include the following:
IC

•
•

•

an C Co ere
BRR 5 (Satisfactory)
BRR (Acceptable)
BRR 7 (Fair)

enerally, a Moderate Risk (Standard rade) rating signifies a borrower whose financial performance issufficient to service obligations and is at par with competitors in the industry. In terms of management, it
is run by executives with adequate personal and professional qualifications and sufficient experience insimilar companies. In terms of growth potential, it is engaged in an industry with stable outlook,
supportive of continuing operations.
Sub Standard rade
In terms of borrower credit ratings, this includes the following:n•••a ifie IC
an C Co ere 
BRR 8 ( atchlist)
BRR 9 (Speculative)
BRR 10 ( ighly Speculative)

er e C a ifie IC
an C Co ere• BRR 11 (Especially Mentioned)• BRR 12 (Substandard)
For accounts that are nclassified, a igh Risk (Sub Standard rade) rating is indicative of borrowers
where there are unfavorable industry or company specific factors. This may be financial in nature (i.e.,
marginal operating performance, returns that are lower than those of the industry, and or diminishedcapacity to pay off obligations that are due), related to management quality (including negative
information regarding the company or specific executives) and or unfavorable industry conditions. The
borrower might find it difficult to cope with any significant economic downturn and a default in such acase is more than a possibility. These accounts require a closer monitoring for any signs of further
deterioration that can trigger review for possible downgrade to adverse classification.
Adversely Classified accounts are automatically considered as igh Risk and generally includes past due
accounts. owever, in some cases, even accounts that are neither past due nor impaired qualifies foradverse classification. Reasons for this include among others the following: consecutive net losses,
emerging weaknesses in terms of cash flow, negative equity, and or breach in the covenants per term loan
agreement.

*SGVFS187254*

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50
Im airedAdversely Classified accounts (refer to the description in the preceding paragraph) rated as BRR 13(Doubtful) and BRR 14 ( oss), which generally pertain to accounts in default or those demonstratingob ective evidence of impairment, are classified as Impaired.
For the Parent Company9s borrowers whose exposures are purely consumer loans, the basis for credit
quality rating is the BSP classification for those that are booked as Current (i.e., Standard rade if
nclassified and Sub Standard rade if Adversely Classified) and impairment status for those that are
booked as Past Due Items in itigation. For the roup, the consumer loans of CBSI covered byapplication scorecard with score ranks of 1 4, and which are Current and nclassified, are classified asigh rade while the remaining consumer loans are classified consistent with the Parent Company9s.
The financial assets are also grouped according to stage whose description is explained as follows:Stage
those that are considered current and up to 30 days past due, and based on change in rating,delinquencies and payment history, do not demonstrate significant increase in credit risk.
Stage
those that, based on change in rating, delinquencies and payment history, demonstratesignificant increase in credit risk, and or are considered more than 30 days past due but does notdemonstrate ob ective evidence of impairment as of reporting date.
Stage
those that are considered in default or demonstrate ob ective evidence of impairment as ofreporting date.
The following tables illustrate the roup9s and the Parent Company9s credit exposures (amounts inmillions):
76:742-*;.-79879*;.*6-,755.9,2*44.6-260
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;>/7@3297::,*99?260*57<6;
76:742-*;.-
76:<5.9.6-260
$37B63@>/AB2C3<=@7;>/7@327565@/23
)B/<2/@25@/23
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  *SGVFS187254*

50

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

51
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*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

51

52
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*SGVFS187254*

52

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

53#*9.6;758*6?

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*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

53

54&/@3<B=;>/<G*@/23@3:/B32"3<27<5$37B63@>/AB2C3<=@7;>/7@327565@/23
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Depository accounts with the BSP and counterparty banks, Trading and Investment Securities
For these financial assets, outstanding exposure is rated primarily based on credit ratings frominternational external credit rating agencies accessed through the roup9s Bloomberg terminal or fromother publicly available information. therwise, rating is based on risk grades by Philratings.
For counterparties without external rating, the reference used for determining credit quality is the Bank9s
internal risk rating system. Exposures with neither external nor internal ratings are included under< nrated=.

*SGVFS187254*

54

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

55
The external risk rating of the roup9s depository accounts with the BSP and counterparty banks, andtrading and investment securities, is grouped as follows:
6+*/8!9'1/8="'8/3-

6+*/8"'8/3--+3)=
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atin

e ription

ig radeAAA An obligor has exceptionally strong capacity for payment of financial commitments. This
capacity is highly unlikely to be adversely affected by foreseeable events. This denotes the lowest
expectation of default risk.
AA An obligor has very strong capacity for payment of financial commitments. This capacity is not
significantly vulnerable to foreseeable events. It differs from the highest rated obligors at a minimal
degree. This denotes expectation of very low default risk.
Standard rade
A An obligor has strong capacity for payment of financial commitments. It is more likely to fulfill its
debt obligations but carries a slightly higher risk compared to higher ratings. Its capacity may be more
vulnerable to adverse business or economic conditions than obligors in higher ratings. This denotes
expectation of low default risk.
BBB An obligor has adequate capacity for payment of financial commitments, but adverse business or
economic conditions are more likely to impair this capacity.
Sub Standard rade
BB An obligor exhibits elevated vulnerability to default risk, particularly in the event of adversechanges in business or economic conditions over time however, business or financial flexibility existsthat supports the servicing of financial commitments.
B An obligor has the capacity to meet its current financial commitments however, capacity forcontinued payment is vulnerable to deterioration in the business and economic environment. This
indicates that material default risk is present, but a limited margin of safety remains.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

55

5
CCC An obligor is currently vulnerable and its capacity to meet its financial commitments relies onfavorable business, financial and economic conditions. This indicates that default is a real possibility
with very low margin for safety.
CC An obligor is highly vulnerable to defaulting on its debt obligations. Although default has not yet
occurred, it is anticipated and considered probable (or extremely likely to happen). This denotes
expectation of greater likelihood of default risk.
C An obligor has started experiencing default or is at high risk of facing nonpayment and is nearing
default, with little prospect for recovery of principal and interest.
R (Regulatory) An obligor has experienced a regulatory action or intervention that significantly impacts
its ability to meet its debt obligations. This rating specifically highlights the influence of regulatory
actions rather than a traditional default on debt payments which serves as a warning about the heightenedrisks associated with the rated financial instruments or issuer.
Im airedRD (Restrictive Default) An obligor is experiencing financial difficulties and has failed to meet some ofits debt payments, but has also taken certain actions to prevent a more severe default situation. It has notentered into bankruptcy filings, administration, receivership, liquidation, or other formal winding up
procedure, and has not otherwise ceased operating. This signifies an elevated level of risk anduncertainty related to the obligor9s ability to fulfill its financial commitments.
SD (Selective Default) An obligor has failed to meet one or more debt obligations while still fulfilling
their other financial commitments. It is experiencing financial stress and may be struggling to meet all of
its debt obligations.
D (Default) An obligor is experiencing financial distress and has defaulted on its debt, which meansthat it has failed to make timely payments or has not fulfilled its financial commitments as agreed upon.
It has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding up
procedure or that has otherwise ceased business and debt is still outstanding.
In the case of P P denominated securities which are not rated by either S P, Moody9s, or Fitch, buthave an external rating by Philratings, the following grouping was applied.
Cre ita it atin
igh gradeStandard grade
Sub Standard grade
atin

terna Cre it iatin
PRSAaa, PRSAa , PRSAa, PRSAaPRSA , PRSA, PRSA , PRSBaa , PRSBaa, PRSBaa
PRSBa , PRSBa, PRSBa , PRSB , PRSB, PRSB ,PRSCaa , PRSCaa, PRSCaa , PRSCa , PRSCa, PRSCa ,e ription

ig radePRSAaa The company9s capacity to meet its financial commitments relative to that of other Philippine
corporates is Very Strong.

*SGVFS187254*

56

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

57
PRSAa The company differs from the highest rated corporates only to a small degree, and its capacity
to meet its financial commitments relative to that of other Philippine corporates is Strong.
Standard rade
PRSA The company is somewhat more susceptible to the adverse effects of changes in circumstancesand economic conditions than higher rated corporates The obligor9s capacity to meet its financial
commitments relative to that of other Philippine corporates is Above Average.
PRSBaa The company9s capacity to meet its financial commitments relative to that of other Philippine
corporates is Average. owever, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity of the corporation to meet its financial commitments.
Sub Standard rade
PRSBa The company9s capacity to meet its financial commitments relative to that of other Philippine
corporates is Below Average. The company faces ongoing uncertainties or exposure to adverse business,financial or economic conditions, which could result in an inadequate capacity on the part of thecorporation to meet its financial commitments.
PRSB The company9s capacity to meet its financial commitments relative to that of other Philippine
corporates is eak. Adverse business, financial or economic conditions will likely impair the
corporation9s capacity or willingness to meet its financial commitments.
PRSCaa The company is Currently Vulnerable and is dependent upon favorable business and financial
conditions to meet its financial commitments.
PRSCa The company is Currently ighly Vulnerable to defaulting on its financial commitments.
Im aired
PRSC The company is In Default on its financial commitments.
For counterparty banks with no external rating but rated under the Bank9 Camelot Rating System, thefollowing grouping was applied:
Cre ita it atin
igh gradeStandard grade
Sub Standard grade
atin

Came ot atin
A1, A2, A3, B1, B2, B3
C1, C2, C3, C4
D1, D2, D3, D4, E1, E2, E3

e ription

ig radeA Exceptional Bank with strong business franchise, financials and prospects
B Bank with good fundamentals some minor weaknesses may exist but should be resolved in due course*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

57

58
Standard rade
C Bank with adequate fundamentals some aspects raise concerns that prevent it from achieving a higher
ratingSub Standard radeD Bank with weaknesses capability ability to resolve such weaknesses is put into question
Im aired
E Bank with very serious problems negative fundamentals
For corporate issuers with no external rating but are rated under the Bank9s ICRRS, the grouping used forcorporate borrowers will apply.
The succeeding tables show the credit exposures of the roup and the Parent Company related to thesefinancial assets (amounts in millions):
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58

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C HI NA BANK I NG COR P O R AT I O N

590Restructured oans
The following table presents the carrying amount of restructured loans (gross of allowance for impairment
and credit losses) of the roup and Parent Company as of December 31, 2023 and 2022:

oans and advances to customers
Corporate and commercial lendingConsumer lending
Total restructured financial assets

2023

2022

2023

2022

4 4 119
1 049 02
03 21

P1, 26,92
1,2 1, 2
P2, , 9003 11
1 00 03010 1 3

P1,1 0, 2
1,22 ,9 1
P2, ,69

Impairment Assessment
The roup recogni es a credit loss allowance on a financial asset based on whether it has had asignificant increase in credit risk since initial recognition. Accordingly, the roup categori es its
financial assets into three categories: stage 1 financial asset that has not had a significant increase incredit risk stage 2 financial asset that has had a significant increase in credit risk and stage 3
financial asset in default.
enerally, the roup assesses the presence of a significant increase in credit risk based on the number ofnotches that a financial asset9s credit risk rating has declined since origination. hen applicable, theroup also applies a rebuttable presumption that the credit risk on a financial asset has increased
significantly since initial recognition when contractual payments are more than 30 days past due. In
subsequent reporting periods, if the credit risk of the financial instrument improves such that there is nolonger a SICR since initial recognition, the roup shall revert it to stage 1.
The roup defines a financial instrument as in default, which is fully aligned with the definition of credit
impaired, when (a) the borrower becomes at least 90 days past due on its contractual payments (unlessthe roup has reasonable and supportable information to demonstrate that a more lagging default
criterion is more appropriate), (b) it is classified as doubtful or loss under prudential reporting (c) it is inlitigation and or (d) full repayment of principal and interest is unlikely without foreclosure of collateral,
if any. As a part of a qualitative assessment of whether a customer is in default, the roup also considers
a variety of instances or loss events that may indicate unlikeliness to pay. hen such events occur, theroup carefully considers whether the event should result in treating the customer as defaulted. An
instrument is considered to be no longer in default (i.e., to have cured) when it no longer meets any of thedefault criteria for a consecutive period of 180 days (i.e., consecutive payments from the borrowers for
180 days).
The roup then measures the credit loss allowance on a financial instrument at an amount equal to 12
month expected credit losses for items categori ed as stage 1 and lifetime credit losses for items
categori ed as stage 2 and stage 3.
The roup modeled the following inputs to the expected credit loss formula separately. The formula isapplied to each financial asset, with certain exceptions wherein a collective or other general approach isapplied:*SGVFS187254*

60

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

1
Ex osure at Default EAD
The roup defines EAD as the principal and interests that would not be collected assuming the borrower
defaults during a future point in time. The roup computes for a financial asset9s EAD using the
expected contractual cash flows during the contractual life of the financial instrument. A financial asset9s
EAD is defined as the sum of EAD from principal and EAD from interest.
Probabilit of default PD
The roup uses forward looking PD estimates that are unbiased and probability weighted using a rangeof possible outcomes. The PD for each individual instrument is modelled based on historical data and isestimated based on current market conditions and reasonable and supportable information about future
economic conditions. The roup segmented its credit exposures based on homogenous risk
characteristics and developed a corresponding PD methodology for each portfolio. The PD methodology
for each relevant portfolio is determined based on the underlying nature or characteristic of the portfolio,
behavior of the accounts, and materiality of the segment as compared to the total portfolio. The roup9s
PDs are mainly categori ed into three: (a) corporate (b) sovereign and (c) retail.
Loss gi en default L D
The roup9s
D model considers certain factors such as the historical cash flow recovery andreasonable and supportable information about future economic conditions, where appropriate. enerally,
the model utili es the roup9s existing loan exposure rating system which is designed to capture thesefactors as well as the characteristics of collaterals related to an exposure. In cases wherein this does not
apply, the roup looks into the standard characteristics of collaterals (e.g., auto and housing loans) inorder to estimate an
D factor. In the case of exposures without collaterals (e.g., securities), the roup
uses internationally accepted standard
D factors.
  "#In accordance with BSP Circular 855, credit reviews are conducted on loan accounts to evaluate whether
loans are granted in accordance with the Parent Company9s policies and to assess loan quality andappropriateness of classification. Results of credit reviews are promptly reported to management toapprise them of any significant findings for proper corrective actions.
  
Market risk is the risk of loss that may result from changes in the value of a financial product. The Parent
Company9s market risk originates from its holdings of domestic and foreign denominated debt securities,
foreign exchange instruments, equities, foreign exchange derivatives, and interest rate derivatives.
The RM of the Parent Company is responsible for assisting the R C with its responsibility for
identifying, measuring, managing, and controlling market risk. Market risk management measures the
Parent Company market risk exposures through the use of VaR. VaR is a statistical measure that
estimates the maximum potential loss from a portfolio over a holding period, within a given confidence
level.
 ! 
The Parent Company calculates the VaR in trading activities. The Parent Company uses the istorical
Simulation Full Valuation approach to measure VaR for all treasury traded instruments, using a 99.00%
confidence level and a 1 day holding period.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

612The use of a 99.00% confidence level means that, within a one day hori on, losses exceeding the VaR
figure should occur, on average, not more than once every hundred days. The validity of the VaR model
is verified through back testing, which examines how frequently actual and hypothetical daily losses
exceeds daily VaR. The Parent Company measures and monitors the VaR and profit and loss on a daily
basis.
Since VaR is an integral part of the Parent Company9s market risk management, VaR limits have been
established for all trading positions and exposures are reviewed daily against the limits by management.
Further, stress testing is performed for monitoring extreme events.
       %
The VaR models are designed to measure market risk in a normal market environment using equallyweighted historical data. The use of VaR has limitations because it is based on historical correlations andvolatilities in market prices and assumes that future price movements will follow the same distribution.
Due to the fact that VaR relies heavily on historical data to provide information and may not clearly
predict the future changes and modifications of the risk factors, the probability of large market moves
may be underestimated if changes in risk factors fail to align with the assumptions. VaR may also be
under or over estimated due to the assumptions placed on risk factors and the relationship between suchfactors for specific instruments. Even though positions may change throughout the day, the VaR only
represents the risk of the portfolios at the close of each business day, and it does not account for any
losses that may occur beyond the 99.00% confidence level.
In practice, the actual trading results will differ from the VaR calculation and, in particular, thecalculation does not provide a meaningful indication of profits and losses in stressed market conditions.
To determine the reliability of the VaR models, actual outcomes are monitored regularly to test thevalidity of the assumptions and the parameters used in the VaR calculation. Market risk positions arealso sub ect to regular stress tests to ensure that the roup would withstand an extreme market event.
A summary of the VaR position of the trading portfolio of the Parent Company is as follows:


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*SGVFS187254*

62

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

3Interest Rate Ris
The roup9s interest rate risk originates from its holdings of interest rate sensitive assets and interest ratesensitive liabilities. The Parent Company follows prudent policies in managing its exposures to interest
rate fluctuations, and constantly monitors and discusses its exposure in Asset and iability Committee(A C ) meetings held every week.
As of December 31, 2023 and 2022, 57.8 % and 0.30% of the roup9s total loan portfolio, respectively,
comprised of floating rate loans which are repriced periodically by reference to the transfer pool rate
which reflects the roup9s internal cost of funds. As of December 31, 2023 and 2022, 2.18% and3.55% of the Parent9s total loan portfolio, respectively, were sub ect to interest repricing. In keepingwith banking industry practice, the roup aims to achieve stability and lengthen the term structure of its
deposit base, while providing adequate liquidity to cover transactional banking requirements ofcustomers.
Savings account interest rates are set by reference to prevailing market rates, while interest rates on time
deposits and special savings accounts are usually priced by reference to prevailing rates ofshort term government bonds and other money market instruments, or, in the case of foreign currency
deposits, inter bank deposit rates and other benchmark deposit rates in international money markets withsimilar maturities.
The roup is likewise exposed to fair value interest rate risk due to its holdings of fixed rate government
bonds as part of its financial assets at FV CI and FVTP portfolios. Market values of these investments
are sensitive to fluctuations in interest rates. The following table provides for the average effective
interest rates of the roup and of the Parent Company as of December 31, 2023 and 2022:

ue from BSPue from banks
Interbank oans Receivable and SP RA
Investment securities oans and receivables
eposit liabilities
Bills payable
Bonds payable

2023

2022

2023

2022

1.6 %
0.09%
.20%
.60%
.22%

0. 0%
0.10%
.1 %. 1%
6.2 %

0. 1%
0.04%
.20%.63%
6. 1%

0. %
0.0 %
.1 %
. %
. 6%

2.42%
2. 4%

1.0 %
2.6 %
2.9 %

2.19%

2. 4%

0.96%
2.6 %
2.9 %

2.44%
.06%
4.0 %
.3 %

0.6 %
1.62%
. %
.90%

2.44%
.06%
4.10%
.3 %

0.6 %
1.62%
. %
.90%

0. 3%
4.22%

0. 2%
2.26%
. 2%

0. 3%
4.22%
I

0. 2%
2.26%
. 2%A

ue from banks
Interbank oans Receivable and SP RA
Investment securities oans and receivables
eposit liabilities
Bills payable
Bonds payable""#"""#"# A ""#"#    %"##"$!#"#!#("#

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

63

4The repricing gap analysis method is used by the roup to measure the sensitivity of its assets andliabilities to interest rate fluctuations. This analysis measures the roup9s susceptibility to changes ininterest rates. The repricing gap is calculated by first distributing the assets and liabilities contained in
the roup9s balance sheet into tenor buckets according to the time remaining to the next repricing date(or the time remaining to maturity if there is no repricing), and then obtaining the difference between the
total of the repricing (interest rate sensitive) assets and the total of repricing (interest rate sensitive)
liabilities.
A gap is considered negative when the amount of interest rate sensitive liabilities exceeds the amount ofinterest rate sensitive assets. A gap is considered positive when the amount of interest rate sensitive
assets exceeds the amount of interest rate sensitive liabilities.
Accordingly, during a period of rising interest rates, a bank with a positive gap would be in a position toinvest in higher yielding assets earlier than it would need to refinance its interest rate sensitive liabilities.
During a period of falling interest rates, a bank with a positive gap would tend to see its interest ratesensitive assets repricing earlier than its interest rate sensitive liabilities, restraining the growth of its net
income or resulting in a decline in net interest income.
The following tables set forth the repricing gap position of the roup and Parent Company as ofDecember 31, 2023 and 2022 (in millions):
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*SGVFS187254*

64

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

5

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
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&     

& The roup monitors its exposure to fluctuations in interest rates by using scenario analysis to estimate theimpact of interest rate movements on its interest income. This is done by modeling the impact to theroup9s interest income and interest expenses to parallel changes in the interest rate curve in a given 12
month period. Interest rate risk exposure is managed through approved limits.
The following tables set forth the estimated change in the roup9s and Parent Company9s annuali ed net
interest income due to a parallel change in the interest rate curve as of December 31, 2023 and 2022 (inmillions):
43741/*'8+*

.'3-+/3/38+6+786'8+7/3('7/754/387(56/7+ (56/7+
 (5,'11
       (5,'11

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'6+38425'3=

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 (5,'11

(5,'11



 

 



    

 

 

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

65The following tables set forth the estimated change in the roup9s and Parent Company9s income before
tax and equity due to a reasonably possible change in the market prices of quoted bonds classified underfinancial assets at FVTP and financial assets at FV CI, brought about by movement in the interest rate
curve as of December 31, 2023 and 2022 (in millions):
2023
2

10
1 
66 

2
1 
66

44
1 416

Consolidated
2022
Change in interest rates (in basis points)
2 bp rise
10bp rise
10bp fall
(P1 )
(P6)
P6
( 11)
(16 )
16

2 bp fall
P1
11



Change in income before ta
Change in e uity

10
44 
1 416 

2023
2

10
42
1 342

Change in income before ta
Change in e uity

10
1
3

2
1
3

Parent Company
2022
Change in interest rates (in basis points)
2 bp rise
10bp rise
10bp fall
(P1 )
(P6)
P6
( 9 )
(1 )
1

42
1 342

2 bp fall
P1
9

The table below shows the Parent Company9s exposures to significant IB R related IRS that have yet totransition to a risk free rate (RFR) as of December 31, 2022. The table excludes exposures that would
have matured before the mandatory transition date on June 30, 2023 for the overnight and 1 , 3 , , and12 month SD IB R.

Derivative assets
Derivative liabilities
Derivative contracts designated as hedges

2022
Nominal Amount
Carrying Value
175,4 4
P9,508,000
12,072
1,250,000,185,749*SGVFS187254*

66

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

7
As of July 1, 2023, all IB R related exposures of the Parent Company have transitioned to the RFR andthe transition resulted to a net decrease in the fair value of derivative assets (net) amounting toP47.07 million.
oreign urrenc Ris
The roup9s foreign exchange risk originates from its holdings of foreign currency denominated assets(foreign exchange assets) and foreign currency denominated liabilities (foreign exchange liabilities).
Foreign exchange liabilities generally consist of foreign currency denominated deposits in the roup9s
FCD account made in the Philippines or generated from remittances to the Philippines by persons
overseas who retain for their own benefit or for the benefit of a third party, foreign currency deposit
accounts with the roup.
Foreign currency liabilities are generally used to fund the roup9s foreign exchange assets which
generally consist of foreign currency denominated loans and investments in the FCD . Banks are
required by the BSP to match the foreign currency denominated liabilities with assets held in the FCD
that are denominated in the same foreign currency.
The roup9s policy is to maintain foreign currency exposure within existing regulations, and within
acceptable risk limits. The roup believes in ensuring its foreign currency is at all times within limitsprescribed for financial institutions who are engaged in the same types of businesses in which the roup
and its subsidiaries are engaged.
The table below summari es the roup9s and Parent Company9s exposure to foreign exchange risk,
excluding the S Dollar denominated assets and liabilities under FCD with functional currency also in
S Dollars. Included in the table are the roup9s and Parent Company9s assets and liabilities at carrying
amounts (stated in S Dollars), categori ed by currency with its P P equivalent:44)54+;2+7.8<2/:-+;23</6;
=/0:868<2/:,+74;
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C HI NA BANK I NG COR P O R AT I O N

67

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The following table sets forth, for the period indicated, the impact of the range of reasonably possible
changes in the S exchange rate and other currencies per Philippine Peso on the pre tax income and equity(in millions).
2023

1%
1%
1%
1%

2022

1

333

Sensitivity ofPreta Income
P

1

333

( )

2023

1%
1%
1%
1%

Sensitivity of
E uity
P20
(20 )

2022

1

326

Sensitivity ofPreta Income
P

1

326

( )

Sensitivity of
E uityP201(201)

The impact in pre tax income and equity is due to the effect of foreign currency behaviour to Philippine
Peso.
E uit Price Ris
Equity price risk is the risk that the fair values of equities change as a result of movements in both thelevel of equity indices and the value of individual stocks. The non trading equity price risk exposure
arises from the roup9s investment portfolio.

*SGVFS187254*

68

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

9The effect on the roup and Parent Company9s equity as a result of a change in the fair value of equity
instruments held as at FV CI due to a reasonably possible change in equity indices, with all othervariables held constant, is as follows (in millions):
43741/*'8+*'6+38425'3=

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! % !  
iquidity risk is generally defined as the current and prospective risk to earnings or capital arising fromthe roup9s inability to meet its obligations when they become due without incurring unacceptable losses
or costs.
The roup9s liquidity management involves maintaining funding capacity to accommodate fluctuationsin asset and liability levels due to changes in the roup9s business operations or unanticipated events
created by customer behavior or capital market conditions. The roup seeks to ensure liquidity through a
combination of active management of liabilities, a liquid asset portfolio composed of deposits reserves
and high quality securities, the securing of money market lines, and the maintenance of repurchasefacilities to address any unexpected liquidity situations.
The tables below show the maturity profile of the roup9s and the Parent Company9s assets andliabilities, based on contractual undiscounted cash flows (in millions):
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*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

69

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*SGVFS187254*

70

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

71



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*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

71

72



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&iquidity risk is monitored and controlled primarily by a gap analysis of maturities of relevant assets andliabilities reflected in the MC report, as well as an analysis of available liquid assets. Instead of relying
solely on contractual maturities profile, the Parent Company uses Behavioral MC to capture a going
concern view. Furthermore, internal liquidity ratios and monitoring of large fund providers have been set
to determine sufficiency of liquid assets over deposit liabilities. iquidity is managed by the Parent
Company and its subsidiaries on a daily basis, while scenario stress tests and sensitivity analysis are
conducted periodically.
7.

e rom

an

t er anDue from BSP
This account consists of:
43741/*'8+*      '6+38425'3=  
   

Due from ther BanksThis consists of deposit accounts with:

43741/*'8+*        

'6+38425'3=         

*SGVFS187254*

72

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

73
Due from ther Banks includes margin deposits with various counterparties to meet the collateralrequirements for the Parent Company9s interbank loans payable (Note 19).
Interest Income on Due from BSP and ther BanksThis account consists of:43741/*'8+*      '6+38425'3=       

The average interest rates on Due from BSP and ther Banks are disclosed in Note .
8. Inter anoan

e ei a e an

e ritier aen er e a ereement

This account consists of:43741/*'8+*        '6+38425'3=       

Interban Loans Recei able
As of December 31, 2023 and 2022, interbank loans receivable includes short term foreign currency
denominated loans granted to other banks.
In 2023, 2022, and 2021, the interest rates of foreign currency denominated interbank loans receivable
range from 5.35%% to 5.45%%, from 4.25% to 4. 0%, and from 0.05% to 0.1 %, respectively.
Securities Purc ased nder Resale Agreement
This account represents overnight placements with the BSP where the underlying securities cannot besold or repledged to parties other than the BSP.
Interest rates of SP RA for both the roup and the Parent Company range from 5.50% to .41% in 2023,
from 2.00% to 5.00% in 2022, and a fixed rate of 2.00% in 2021.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

73

74
9.

ra in an In e tment e ritie
Financial Assets at FVTP
This account consists of:).(*1464%(-0+ 18)40/)06&10(5 "4)%574;016)5
 "4)%574;&-..5 4-8%6)&10(5 716)()37-6;5,%4)5

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)4-8%6-8)'1064%'65016()5-+0%6)(%5,)(+)516) "16%.

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As of December 31, 2023 and 2022, FT securities include fair value gain of P53. 4 million and fairvalue loss of P98.39 million, respectively, for the roup. As of December 31, 2023 and 2022, FT
securities include fair value loss of P10.85 million and fair value loss of P91.18 million, respectively, for
the Parent Company.
Effective interest rates for peso denominated financial assets at FVTP for both the roup and the Parent
Company range from 0.32% to 9.08% in 2023, from 0.18% to 8.98% in 2022, and from 0. 5% to 8.80%
in 2021. Effective interest rates for foreign currency denominated financial assets at FVTP for theroup and Parent Company range from 2.10% to 10.1 % in 2023, from 1.27% to .84% in 2022, andfrom 0.12% to 7.10% in 2021.
Financial Assets at FV CI
This account consists of:

ebt Securities
overnment bonds ( ote 29)
Private bonds
E uity Securities
uoted e uity sharesn uoted e uity shares
Total







13 36919 4 9104 911 94

P2 , ,6
1 ,2 6,902
2,6 , 92 624
19 6 6 3 292 311 260

P2 , , 2
1 ,0 , 29
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1 601 96
2 943
1 629 39
106 41 4

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6 2,20P , 16,

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19
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n uoted e uit securities
This account consists of shares of stocks of various unlisted private corporations. The roup has designatedthese equity securities as at FV CI as these will not be sold in the foreseeable future.

*SGVFS187254*

74

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

75
et unreali ed gains losses
As of December 31, 2023 and 2022, financial assets at FV CI include fair value losses of P1.55 billion
and P4.42 billion, respectively, for both the roup and the Parent Company. The fair value losses arerecogni ed in CI. As of December 31, 2023, accumulated credit losses on debt financial assets at
FV CI recogni ed in CI amounted to P134.81 million and P134.78 million for the roup and the
Parent Company, respectively, while as of December 31, 2022, it amounted to P124.31 million andP124.38 million for the roup and the Parent Company, respectively.
Effective interest rates for peso denominated financial assets at FV CI for both the roup and Parent
Company range from 2.08% to 8.58% in 2023, from 1.75% to 8.50% in 2022, and from 1.40% to 5.40%
in 2021.
Effective interest rates for foreign currency denominated financial assets at FV CI for both the roupand Parent Company range from 1.37% to 7.95% in 2023 and 2022, and from 0.83% to 7.00% in 2021.
Investment Securities at Amorti ed Cost
This account consists of:overnment bonds ( ote 19)
Private bonds
namorti ed premium netAllowance for credit losses ( ote 16)2023
2 1 3 49
126 3 03 1 93
2 43 6041 16
3 0 461 421

2022
P226, 1 ,019
129,12 , 1
,6 , 02, 9,2 6( , 20)P ,9 ,9262023
24 233 99
126 22 229
3 1 462 22
2 640 623 44
3 3 6 422022
P221,22 ,162
12 , , 19,6 9, 9
2,6 6,0( 2, 1)
P 1, 02,

Effective interest rates for peso denominated investment securities at amorti ed cost for the roup andthe Parent Company range from 1.85% to 7.14% in 2023, from 1. % to 7.14% in 2022, and from 1.28%
to 7.14% in 2021. Effective interest rates for foreign currency denominated investment securities atamorti ed cost for the roup and the Parent Company range from 0.57% to 10.34% in 2023, 2022 and2021.
Redem tion and Sale of In estment Securities at Amorti ed ost
In 2023 and 2022, investment securities at amorti ed cost held by the Parent Company with carrying
values prior to redemption of P1. 5 billion and P7 .9 million, respectively, were redeemed by theirrespective counterparty issuers in accordance with the terms and conditions in the bond indentures which
resulted in a gain of P0.08 million and P1.92 million, respectively. In 2021, the Parent Company soldinvestment securities at amorti ed cost with carrying values prior to the sale amounting to P55.77 billion,
which resulted in a gain of P4.0 billion, primarily due to liquidity related reasons.
These redemptions and disposals of investment securities at amorti ed cost were assessed by the Parent
Company as not inconsistent with the portfolios9 business models considering the conditions and reasons
for which the redemptions and disposals were made (see Note 3).

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

75

7Interest Income on Investment Securities at Amorti ed Cost and at FV CI
This account consists of:7</<17/:/AA3BA/B,% <D3AB;3<BA31C@7B73A/B
/;=@B7H321=AB

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& e ei a e

This account consists of:"=/<A/<227A1=C<BA76:742-*;.-7:87:*<.*6-,755.:,2*44.6-260
76;=5.:4.6-260%:*-.:.4*<.-4.6-260
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    "                "

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%B63@A7<1:C233;>:=G33:=/<A/<24=@375<07::A>C@16/A32

Information on the amounts of secured and unsecured loans and receivables (gross of unearned discounts
and allowance for impairment and credit losses) of the roup and Parent Company are as follows:
7*6;;.,=:.-+A
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%B63@A7<1:C23A:=/<AA31C@320GA6/@3A=4AB=19A=4=B63@47@;A2332=4/AA75<;3<B=4/11=C<BA@3137D/0:3/AA75<;3<B >:3253=45=D3@<;3<B
A31C@7B73A;=@B5/53B@CAB7<23<BC@3/<2=B63@1=::/B3@/:A *SGVFS187254*

76

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

77
Modification of oans and Receivables
ID
Pandemic
In 2020, the roup provided payment reliefs grace periods in accordance with Bayanihan to eal asne Act (<Bayanihan 1 Act=) and Bayanihan to Recover as ne Act (<Bayanihan 2 Act=) which wereenacted on March 25, 2020 and September 11, 2020, respectively. In addition, the roup offeredfinancial reliefs, aside from those covered by Bayanihan 1 Act and Bayanihan 2 Act, to their borrowers or
counterparties as a response to the effect of the C VID 19 pandemic, particularly the modification ofexisting loans and receivables which includes extension of payment terms.
Based on the roup9s assessments, the modifications in the contractual cash flows as a result of the above
reliefs are not substantial and, therefore, do not result in the derecognition of the affected financial assets
but would require the recognition of modification losses. The total modification losses resulting from
Bayanihan 1 Act and Bayanihan 2 Act are not material for the Parent Company. For CBSI, the total
modification loss in 2020 amounted to P203.75 million. In 2023 and 2022, the accretion on the modified
loans amounted to P9.95 million and P44.09 million, respectively.
Assignment and Leasebac Transaction wit a Re urc ase tion
In 2023, the Parent Company (assignee lessor) entered into an assignment and leaseback transaction with
option to repurchase as settlement of a loan receivable, which was assessed by the Parent Company as aloan modification in accordance with the applicable accounting standards (see Note 2). The Parent
Company assessed that the modification in the contractual cash flows under the terms of the transaction is
not substantial9 and, therefore, does not result in the derecognition of the original loan receivable. As aresult of the transaction, the Parent Company recogni ed a modification gain included under
Miscellaneous income9 amounting to P1 3.21 million (Note 22). As of December 31, 2023, theunamorti ed balance of the modification gain amounted to P138.51 million, net of amorti ation due toaccretion amounting to P24.70 million.
Interest Income on oans and Receivables
As of December 31, 2023 and 2022, 57.8 % and 0.30%, respectively, of the total receivables from
customers of the roup and 2.1 % and 3.55%, respectively, of the total receivables from customers of
the Parent Company were sub ect to interest repricing.
Remaining receivables of the roup carry annual fixed interest rates ranging from 2.00% to 39.42% in
2023, from 2.00% to 39.42% in 2022, and from 1.75% to 39.42% in 2021 for peso denominatedreceivables, and from 3.00% to 10.50% in 2023, from 4.00% to 10.50% in 2022, and from 2.25% to10.50% in 2021 for foreign currency denominated receivables.
Remaining receivables of the Parent Company carry annual fixed interest rates ranging from 2.00% to
30.00% in 2023, from 2.00% to 30.00% in 2022, and from 1.75% to 30.00% in 2021 for peso
denominated receivables and from 3.00% to 10.50% in 2023, from 4.00% to 10.50% in 2022, and from
2.38% to 10.50% in 2021 for foreign currency denominated receivables.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

77

78
11.

it In e tment
This account consists of investments in:
A. Subsidiaries(* "0"$&**&*$+#0%"4".    

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

79
/%!&2&!"*!/  
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  B. Associates:(* "0"$&**&*$+#0%"4".
%."&**"0&* +)"%."&*       
 "01*."(&5"!$&*(+//+*        ")"/1.")"*0$&*(+//+*(&#"&*/1.* "
 ."/".2"/ ")"/1.")"*0$&*(+//+*!"#&*"!"*"#&0 ,(*/%!&2&!"*!/(* "0"*!+#0%"4".

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CBSI
Cost of investment includes the original amount incurred by the Parent Company from its acquisition of
CBSI in 2007 amounting to P1.07 billion.
n August 2, 2023, the B D of the Parent Company took up and approved, confirmed, and ratified thecapital infusion amounting to P2.00 billion to China Bank Savings, Inc. (CBSI), in order to support
CBSI s sustained loan expansion and enhance its ability to cover and serve more segments of the banking
and unbanked population. The additional capital is to be infused to CBSI in tranches and is based on
certain conditions. n December 22, 2023, the Parent Company infused additional capital to CBSI
amounting to P1.00 billion.
Merger of
SI wit PD
The B D of both CBSI and PDB, in their meeting held on June 2 , 2014, approved the proposed mergerof PDB with CBSI, with the latter as the surviving bank. n November , 2015, the BSP issued theCertificate of Authority on the Articles of Merger and the Plan of Merger, as amended, of CBSI and
PDB. n December 17, 2015, CBSI obtained SEC9s approval of its merger with PDB, whereby theentire assets and liabilities of PDB shall be transferred to and absorbed by CBSI.

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80
Ac uisition of PD
In 2014, the Parent Company made tender offers to non controlling stockholders of PDB. As of
December 31, 2014, the Parent Company owns 99.85% and 100.00% of PDB9s outstanding common andpreferred stocks, respectively.
The consideration transferred for the acquisition of PDB amounted to:
Acquisition of ma ority of PDB9s capital stock
Tender offers

P1,421,34
255,354
P1, 7 ,700

In 2014 and 2015, the Parent Company made additional capital infusion to PDB amounting toP1.30 billion and P1.70 billion, respectively.
In 2015, the Monetary Board (MB) of the BSP granted to the roup investment and merger incentives in
the form of waiver of special licensing fees for 7 additional branch licenses in restricted areas. This is inaddition to the initial investment and merger incentives of 30 new branches in restricted areas and 35
branches to be transferred from unrestricted to restricted areas granted to the Parent Company by the MB
in 2014. These branch licenses were granted under the Strengthening Program for Rural Bank (SPRB)Plus Framework.
The branch licenses have the following fair values:
114 Commercial Bank branch licenses
18 Thrift Bank branch licenses

P2,280,000
270,000
2,550,000(7 5,000)P1,785,000

Deferred tax liabilityn April , 201 , the Parent Company9s B D approved the allocation of the 7 additional branchlicenses in restricted areas as follows: 49 to the Parent Company and 18 to CBSI. oodwill fromacquisition of PDB is computed as follows:
Consideration transferred
ess: Fair value of identifiable assets and liabilities
acquired
Net liabilities of PDB
Branch licenses, net of deferred tax liability(Note 14)

P1, 7 ,700
(P725,207)
1,785,000

1,059,793
P 1 ,907#!$"&!" !!%" " $#  " 

CIBI
n February 21, 2023, the B D of CIBI declared and approved cash dividends amounting to
P 0.00 million for stockholders on record as of declaration date, payable on March 1, 2023.
n February 8, 2022, the B D of CIBI declared and approved cash dividends amounting toP50.00 million for stockholders on record as of declaration date, payable on March 1, 2022.

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

81
CBC PCCIn June 14, 2023, the B D of CBC PCCI declared and approved cash dividends amounting toP15.00 million for stockholders on record as of July 31, 2023, payable on August 15, 2023.
n June 1, 2022, the B D of CBC PCCI declared and approved cash dividends amounting toP25.00 million for stockholders on record as of July 30, 2022, payable on August 5, 2022.
CBCC
n April 1, 2015, the B D approved the investment of the Parent Company in an investment housesubsidiary, CBCC, up to the amount of P500.00 million. n April 30, 2015, the BSP approved the Parent
Company9s investment of up to 100% or up to P500.00 million common shares in CBCC. n November
27, 2015, the SEC approved the Articles of Incorporation and By aws of CBCC and granted CBCC thelicense to operate as an investment house.
ac uisition of
Sec formerl AT Securities Inc
n May 19, 201 , the B D of CBCC approved the acquisition of ATC Securities, Inc. (ATC).
n June 29, 201 , CBCC and the shareholders of ATC (the riginal Shareholders) entered into an
Agreement for the Purchase of Shares whereby CBCC agreed to buy, and the riginal Shareholders
agreed to sell, 3,800,000 shares representing 100% of the issued and outstanding shares of ATC.
n July , 2017, the SEC approved the change of name from ATC Securities, Inc. to China Bank
Securities Corporation.
Assets ne SP Inc
CBC Assets ne (SPC), Inc. was incorporated on June 15, 201 as a wholly owned special purpose
company of CBCC for asset backed securiti ation. It has not yet commenced commercial operations.
Resurgent a ital IST AM Inc
Resurgent Capital (FIST AMC), Inc. was incorporated on September , 2021 as a wholly owned FIST
Corporation of CBCC. The primary purpose is to invest in, or acquire, Non Performing Assets (<NPAs)=of any financial institution. It has not yet commenced commercial operations.
Investment in Associates
Investment in associates in the consolidated and the parent company financial statements pertain to
investment in MCB ife and CBC PCCI9s investment in rban Shelters (accounted for by CBC PCCI in
its financial statements as an investment in an associate). Investment in rban Shelters is carried at nil
amount as of December 31, 2023 and 2022.
MCB ife
In 200 , the Parent Company and Manufacturers ife Insurance Company (Manulife) entered into a oint
pro ect where the Parent Company will invest in a life insurance company owned by Manulife, and suchcompany will be offering innovative insurance and financial products for health, wealth, and education
through the Parent Company9s branches nationwide. The Parent Company acquired 5.00% interest in
Manulife China Bank ife Assurance Corporation (MCB ife) on August 8, 2007. This investment isaccounted for as an investment in an associate by virtue of the Bancassurance Alliance Agreement which
provides the Parent Company the right to be represented in MCB ife9s B D and, thus, exercise
significant influence over the latter.

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82
The BSP requires the Parent Company to maintain a minimum of 5.00% ownership over MCB ife inorder for MCB ife to be allowed to continue distributing its insurance products through the Parent
Company9s branches.
n September 12, 2014, the BSP approved the request of the Parent Company to raise its capital
investment in MCB ife from 5.00% to 40.00% of its authori ed capital through purchase of
1.75 million common shares.
n June 30, 2023, the Parent Company received P1 0.00 million cash dividends from MCB ife. The
following tables show the summari ed financial information of MCB ife:
2022
P 2,278, 13
59,8 9,929
2,408, 84

Total assets
Total liabilities
Equity2022
P13,402,185
12,540,513
8 1, 72
712, 47

Revenues
Benefits, claims and operating expenses
Income before income tax
Net income

Commission income earned by the roup from its bancassurance agreement is included under
Miscellaneous income9 in the statements of income (Note 22).

12.

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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  The roup adopted the deemed cost model as of January 1, 2004 and considered the carrying value of theland determined under its previous accounting method (revaluation method) as the deemed cost of theasset as of January 1, 2005. Accordingly, revaluation increment amounting to P1.28 billion was closed tosurplus (Note 24) in 2011.
As of December 31, 2023 and 2022, the gross carrying amount of fully depreciated furniture, fixtures andequipment still in use amounted to P3. billion and P3.45 billion, respectively, for the roup andP2.7 billion and P2. 7 billion, respectively, for the Parent Company.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N83

84
ains on sale of furniture, fixtures and equipment amounting to P1.50 million, P2.40 million and nil in
2023, 2022, and 2021, respectively, for the roup and the Parent Company are included in the statements
of income under Miscellaneous income9 account (Note 22).
In 2021, depreciation and amorti ation amounting to P1.47 billion and P1.11 billion for the roup andParent Company, respectively, are included in the statements of income under Depreciation andamorti ation9 account.
13. In e tment ropertie
The composition of and movements in this account follow:

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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   '3*       
  *SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N858))9291'8+*+56+)/'8/43
'3*2468/>'8/43

114;'3)+,4625'/62+38477+7

The roup9s investment properties consist entirely of real estate properties acquired in settlement ofloans and receivables. The difference between the fair value of the investment property upon foreclosureand the carrying value of the loan is recogni ed under ain (loss) on asset foreclosure and daciontransactions9 in the statements of income.
In 2021, depreciation and amorti ation amounting to P150.23 million and P91.72 million for the roupand Parent Company, respectively, are included in the statements of income under Depreciation andamorti ation9 account.
Details of rental income earned and direct operating expenses incurred on investment properties follow:


43741/*'8+*
'6+38425'3=
 





 

Rent income earned from leasing out investment properties is included under Miscellaneous income9 inthe statements of income (Note 22).
Direct operating expenses include occupancy cost, repairs and maintenance, and taxes and licenses
related to the investment properties.

*SGVFS187254*

86

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

87n August 2 , 2011, the Parent Company was registered as an Economic one Information Technology(IT) Facilities Enterprise with the Philippine Economic one Authority (PE A) to operate and maintain aproposed 17 storey building located inside the CBP IT Park in Barangays Mabolo, u , ipodromo,
Carreta, and amputhaw, Cebu City, for lease to PE A registered IT enterprises, and to be known as
Chinabank Corporate Center. This registration is under PE A Registration Certificate No. 11 03 F.
nder this registration, the Parent Company is entitled to five percent (5.00%) final tax on gross income
earned from locator IT enterprises and related operations in accordance with existing PE A rules. The
Parent Company shall also be exempted from the payment of all national and local taxes in relation tothis registered activity.

14.

oo

i an Intan i eetoodwilloodwill represents the excess of the acquisition costs over the fair value of the identifiable assets andliabilities of companies acquired by the roup.
The roup attributed the goodwill arising from its acquisition of CBSI and PDB to factors such as anincrease in geographical presence and customer base due to the branches acquired. CBSI as the surviving
entity from the merger with PDB, is the identified C
for this goodwill. The Parent Company9s Retail
Banking Business (RBB) has been identified as the C
for impairment testing of the goodwill from its
acquisition of CBSI.
As of December 31, 2023 and 2022, the amount of goodwill per C

follows:

Consolidated Parent Company
P222,841
P222,841
1 ,907
P839,748
P222,841

RBB
CBSI
Total

The recoverable amount of the C s has been determined based on a value in use calculation using cash
flow pro ections from financial budgets approved by senior management covering a five year period,
which do not include restructuring activities that the roup is not yet committed to or significant future
investments that will enhance the asset base of the C
being tested. ther than loans and deposits
growth rates, the significant and most sensitive assumptions used in computing for the recoverable valuesof the C s follow:
2022
C
Discount rate
ong term growth rate

I

RBB
10.85%
1.00%

CBSI
10. %
1.00%

ith regard to the assessment of value in use of the C , management believes that no reasonably
possible change in any of the above key assumptions would cause the carrying value of the goodwill tomaterially exceed its recoverable amount as of December 31, 2023 and 2022.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

8788Intangible Assets
This account consists of:
43741/*'8+*               '6+38425'3=

 
 
?
  
   







ranc Licenses
Branch licenses of the roup arose from the acquisitions of CBSI, nity Bank, and PDB. As of
December 31, 2023 and 2022, details of branch licenses in the roup9s and the Parent Company9s
financial statements follow:
Consolidated Parent Company
P477, 00
P455,000
3 0,000
2,839,500
3, 77,100
455,000(289,502)(57,000)
P3,387,598
P398,000

Branch license from CBSI acquisition
Branch license from nity Bank acquisition
Branch license from PDB acquisition
Allowance for impairment losses!"'"" #""" "'

Each branch to which the branch license is attributed is the C
that is tested independently for
impairment assessment. ther than loans and deposits growth rates, the significant and most sensitive
assumptions used in computing for the recoverable values of the C s follow:
2022
C
Discount rate
ong term growth rate

I

RBB
10.85%
1.00%

CBSI
10. %
1.00%

a itali ed Software osts
The movements in the account follow:

Balance at beginning of year
Additions
isposals write-off reclassification ( ote 12)
Balance at end of year

2023

2022

2023

2022

2 101 442
192 66246 6
2 24 24

P1,9 9,0
1 ,19(22, )
2,101, 2

2 026 3901 1
36 0 2
21 4

P1,9 , 29 , 2(6, 9)
2,026, 90(Forward)*SGVFS187254*

88

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

89

Balance at beginning of year
epreciation and amorti ation
isposals write-off reclassification ( ote 12)
Balance at end of year

2023

2022

2023

2022

1 13 91 0
1 4
1 66 19
3 10 1

P1, ,2
1 9,2 9(2,669)1, 1 , 9
P ,1 03 0 6
14 01
3 19
1 4 1
32 31

P1, 6 ,0
1 6,901,0 6
1, 0 ,0 6
P 2 , 1

Exc ange Trading Rig t
As of December 31, 2023 and 2022, the roup has an exchange trading right with the following carrying
values:2022
P12,000(3,500)P8,500

Cost
Allowance for impairment losses

The trading right has an indefinite useful life and, thus, is not amorti ed but is sub ect for impairment
at every reporting date. In 2023 and 2022, the roup recogni ed an impairment loss amounting toP0.50 million and nil, respectively.
nder the PSE rules, all exchange membership seats are pledged at its full value to the PSE to secure thepayment of all debts to other members of the exchange arising out of or in connection with the present or
future members9 contracts.
15.

t er

et

This account consists of:
2023

2022

2023

2022

Accounts receivable
Sales contract receivable
RCOCI
Others3
24
16 6 031 66
4 293
619 291

P2, , 2
1, 0,0 1
162,0
0,6
, ,1

2 309 40240 330
103 204
9 3
2 662 4 6

P1,6 ,69
21 ,909
110,0 1, 0
1,992, 61

et plan assets ( ote 2 )Prepaid e penses
Creditable withholding ta es
Security deposit
ocumentary stamps
Sundry debits
Miscellaneous

34 9 3609 0640 0 33 6 06
310 6
1 49
1 292
3 49 46
9 16
9
96
199 1

00, 16,09
12, 162,0
22 , 022 ,6 90, 6,002,1 2, 0,290( 11, 0)P6, , 6066
0 26

2 ,120
1 ,011,92
19, 6
1 2, 9160,0, 96
2,1 1,2,16 ,6( 29, 1 )P , ,92

Allowance for impairment losses ( ote 16)

323 661 96
114 9
6 46 324 36 0136 1 6
21 4 94 614 66

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

89

90
Accounts recei able
Accounts receivable includes non interest bearing advances to officers and employees, with terms
ranging from 1 to 30 days, and receivables of the Parent Company from automated teller machine (ATM)transactions of clients of other banks that transacted through any of the Parent Company9s ATM
terminals.
Sales contract recei able
This refers to the amorti ed cost of receivables arising from the subsequent sale of assets acquired insettlement of loans through foreclosure or dation in payment where the sale is on installment basis andthe title to the said property is transferred to the buyers only upon full payment of the agreed selling
price.
SCR bears fixed interest rates per annum in 2023 and 2022 ranging from .00% to 10.00% and 5.50% to
10.00%, respectively.
Miscellaneous
Miscellaneous consists mainly of unissued stationery and supplies, inter office float items, and deposits
for various services.

1 .

o an e for Impairment an Cre it o eChanges in the allowance for impairment and credit losses are as follows:/:/<13A/B0357<<7<5=4G3/@ "=/<A/<2@3137D/0:3A
 <D3AB;3<BA31C@7B73A/B/;=@B7H321=AB 7</<17/:/AA3BA/B,% 
 <D3AB;3<B>@=>3@B73A
 11@C327<B3@3AB@3137D/0:3
 <B/<570:3/AA3BA
 <D3AB;3<B7<AC0A727/@73A %B63@/AA3BA
 %440/:/<13A633B3F>=AC@3A

&@=D7A7=<A16/@532B==>3@/B7=<A
11=C<BA16/@532=44/<2=B63@A
/:/<13A/B3<2=4G3/@ "=/<A/<2@3137D/0:3A$=B3 
 <D3AB;3<BA31C@7B73A/B/;=@B7H321=AB$=B3
 7</<17/:/AA3BA/B,% $=B3
 <D3AB;3<B>@=>3@B73A$=B3  11@C327<B3@3AB@3137D/0:3
 <B/<570:3/AA3BA
 <D3AB;3<B7<AC0A727/@73A %B63@/AA3BA$=B3 
 %440/:/<13A633B3F>=AC@3A$=B3 

76:742-*;.-




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                     
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%  " "!!!"$"  !"!" !!"" " '#"" "!!"#"! &"   " &"  " !!!  )  !!"! "  *  ) !" &!# !* %    !" #  ) "# (!!!!"!"  * #"')"  "!* "' !"$'*SGVFS187254*

90

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

91
At the current level of allowance for impairment and credit losses, management believes that the roup
has sufficient allowance to cover any losses that may be incurred from the non collection or non
reali ation of its loans and receivables and other risk assets.
Below is the breakdown of provision for credit losses in 2023, 2022, and 2021.

5(48(4+7,*,0;()2,8=@>=@/B3/<21=;;3@17/::3<27<5=<AC;3@:3<27<5*@/23@3:/B32:3<27<5%B63@A4;,893,498

<D3AB;3<BA31C@7B73A/B/;=@B7H321=AB7</<17/:/AA3BA/B,% 230BA31C@7B73A58*,<<78:7/2<7:47;;7/57>.5.6<;26
/7:7//+773;.@87;=:.;
!<1.:*;;.<;
!75;080548*/(7.,+9556,7(90548





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       !
   

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   



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  "        
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   "     

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

 
  

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 
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   
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The tables below illustrate the movements of the allowance for impairment and credit losses during 2023
(effect of movements in EC due to transfers between stages are shown in the total column):
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   # *SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

91

92
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*SGVFS187254*

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*SGVFS187254*

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*SGVFS187254*

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Comparative figures for the movement of allowance for credit and impairment losses for 2022 are shown
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*SGVFS187254*

96

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*SGVFS187254*

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*SGVFS187254*

98

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*SGVFS187254*

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100
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*SGVFS187254*

100

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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*SGVFS187254*

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102
The corresponding movement of the gross carrying amount of the financial assets during 2023 are shown
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*SGVFS187254*

102

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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Comparative figures for the movement of gross carrying amount for 2022 are shown below:=<A=:72/B32")B/57<5)B/53 )B/53 )B/53

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C HI NA BANK I NG COR P O R AT I O N

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*SGVFS187254*

108

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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C HI NA BANK I NG COR P O R AT I O N

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*SGVFS187254*

110

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

111
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*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

111

112
hile the roup recogni es through the statement of income the movements in the expected credit losses
computed using the models, the roup also complies with BSP9s regulatory requirement to appropriate a
portion of its retained earnings at an amount necessary to bring to at least 1% the allowance for credit
losses on loans (Note 24).

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epo it ia i itie
As of December 31, 2023 and 2022, 42.92% and 39.47% respectively, of the total deposit liabilities of
the roup and 48. 1% and 43.8 % of the parent are sub ect to periodic interest repricing. The remaining
deposit liabilities bear annual fixed interest rates ranging from 0.0 % to 5.98% in 2023, from 0.05% to4.55% in 2022, and from 0.05% to 4.55% in 2021 for the roup and the Parent Company.
Interest Expense on Deposit iabilities
This account consists of:
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BSP Circular No. 830 requires reserves against deposit liabilities. As of December 31, 2023 and 2022,
due from BSP amounting to 70.72 billion and 77.55 billion, respectively, for the roup and 7.7
billion and 73.92 billion, respectively, for the Parent Company were set aside as reserves for deposit
liabilities per latest report submitted to BSP. As of December 31, 2023 and 2022, the Parent Company isin compliance with such regulation.
n May 27, 2020, BSP issued Circular No. 1087, Alternati e om liance wit t e Reser e Re uirementsof an s and on an inancial Institutions wit uasi an ing unctionss which provides
the following allowable modes of alternative compliance with the required reserves against deposit anddeposit liabilities, provided that the following loans were granted, renewed, or restructured after March
15, 2020:
a. Peso denominated loans that are granted to micro , small and medium enterprises (MSMEs)
b. Peso denominated loans that are granted to large enterprises, excluding banks and NB Bs provided
that large enterprises are directly and adversely impacted by the Covid 19 outbreak*SGVFS187254*

112

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

113
Subsequently on ctober 8, 2020, BSP issued Circular No. 1100 Amendment to t e Alternati eom liance wit t e Reser e Re uirements of an s and on an inancial Institutions wit uasi
an ing unctionss , which states that a bank NB B may continue to utili e past due or non
performing MSME and large enterprise loan as alternative compliance with the reserve requirements foran additional thirty (30) calendar days from the date the loan becomes past due or non performing,
whichever comes earlier.
The use of MSME loans as allowable alternative compliance with the reserve requirement shall beavailable to banks NB Bs from April 24, 2020 to December 29, 2022 while the use of loans to a large
enterprise as allowable alternative compliance with the reserve requirements shall be available tobanks NB Bs from May 29, 2020 to December 29, 2022. owever, the subsequent issuance of BSP
Circular No. 1155 Amendments to t e Alternati e om liance wit t e Reser e Re uirements of an sands further extended the use of MSME loans and loans to a large enterprise as allowable
alternative compliance from December 29, 2022 to June 30, 2023.
As of December 31, 2023 and 2022, the roup is in compliance with the reserve requirement.
ong Term Negotiable Certificates of Deposits ( TNCD)n August 3, 201 , the B D of the Parent Company approved the issuance of ong Term Negotiable
Certificates of Deposits ( TNCD) of up to P20.00 billion in tranches of P5.00 billion to P10.00 billion
each and with tenors ranging from 5 to 7 years to support the roup9s strategic initiatives and businessgrowth. n ctober 27, 201 , the Monetary Board of the BSP approved the TNCD issuances.
n November 18, 201 , the Parent Company issued the first tranche at par with aggregate principal
amount of P9.58 billion, which matured on May 18, 2022. The TNCDs bear a fixed coupon rate of
3. 5% per annum, payable quarterly in arrears.
n June 2, 2017, the Parent Company issued at par TNCDs with aggregate principal amount of
P .35 billion, which bear a fixed coupon rate of 3. 5% per annum, payable quarterly in arrears, andmatured on December 22, 2022, representing the second tranche of the P20.00 billion.
n March 7, 2018, the Board of Directors approved the Bank9s Peso funding program of up to
P50.00 billion via a combination of ong Term Negotiable Certificate of Time Deposit and or Retail
Bonds and or Commercial Papers. Part of the funding program is a P20.00 billion TNCD program
which was approved by BSP on June 14, 2018.
n July 12, 2018, the Parent Company issued at par TNCDs with aggregate principal amount of
P10.25 billion due January 12, 2024, representing the first tranche of the P20 billion TNCD program.
The TNCDs bear a fixed coupon rate of 4.55% per annum, payable quarterly in arrears. The Parent
Company settled the TNCDs on January 12, 2024.
The TNCDs are included under the Time deposit liabilities9 account.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

113

114
18.

on

a a e

The Parent Company9s bonds payable consists of:
P20.00 Billion Peso Fixed Rate Bonds due in 2024
n February 18, 2021, the Parent Company issued P20.00 billion Peso fixed rate bonds, which bears afixed coupon rate of 2.50% per annum, payable monthly, and matured on February 18, 2024.
P15.00 Billion Peso Fixed Rate Bonds due in 2022
n ctober 22, 2020, the Parent Company issued P15.00 billion Peso fixed rate bonds, which bears afixed coupon rate of 2.75% per annum, payable quarterly, and matured on ctober 22, 2022.
BSP Circular No. 830 requires reserves against peso denominated bonds. As of December 31, 2023 and2022, the roup is in compliance with such regulation.
150.00 Million Bonds Payable to IFC
n June 18, 2019, the Parent Company issued a 150 million, seven year bond to International FinanceCorporation. The bond reprices semi annually and carries an interest margin of 120 basis points overmonth IB R.
Shortly thereafter, the Parent Company entered into a seven year pay fixed, receive floating IRS (seeNote 2 ) with the same principal terms to hedge the exposure to interest rate risk attributable to variable
cash flow payments on the floating rate bonds payable (Note ).
The Bond Subscription Agreement contains certain financial covenants with which the Parent Company
should comply during the term of the bond, including the following:
•
•
•
•
•
•
•
•
•
•

Risk eighted Capital Adequacy Ratio of not less than ten per cent (10%)
Equity to Assets Ratio of not less than five per cent (5%)
Aggregate arge Exposures Ratio of not more than four hundred per cent (400%)
pen Credit Exposures Ratio of not more than twenty five per cent (25%)
Fixed Assets Plus Equity Participations Ratio of not more than thirty five per cent (35%)
Aggregate Foreign Exchange Risk Ratio of not more than twenty five per cent (25%)
Single Currency Foreign Exchange Risk Ratio of not more than ten per cent (10%)
Interest Rate Risk Ratio of not less than negative twenty five per cent ( 25%) and not more thantwenty five per cent (25%)
Aggregate Interest Rate Risk Ratio of not less than negative fifty per cent ( 50%) and not more thantwenty per cent (20%)
pen F Position of 25% of ualifying Capital and SD 150 million, whichever is lower.

In addition, the Parent Company should also comply with the regulatory requirements related to Economicroup Exposure and Related Party Exposure set by the BSP or the Bond Subscription Agreement,
whichever is more stringent.
Non compliance with these obligations may require the Parent Company to pay the bond immediately.
As of December 31, 2022, the Parent Company is in compliance with these covenants and regulatory
requirements.

*SGVFS187254*

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

115
n May 11, 2023, the Parent Company informed IFC of its decision to pre terminate the 150 million
bonds payable with the latter. The pretermination of the bonds took effect on June 15, 2023, and resulted
in a loss of P17.98 million. n May 18, 2023, the Parent Company pre terminated the IRS, which waspreviously designated as a hedging instrument to the 150 million bonds payable with IFC. The
pretermination of the IFC bonds payable resulted in the discontinuance of the cash flow hedge and therecycling of the corresponding hedge reserve of the IRS from the CI to profit or loss. Reali ed gains
from the pre termination of the IRS amounted to P4 8.35 million.
The movements in the Parent Company9s total unamorti ed discount and debt issue cost on the above bonds
payable follow:
Beginning balance
Additions
Amorti ation
Pre termination
Ending balance

19.

i

2022
P17 ,292
151(12 ,0 3)
P50,380

a a e

The Parent Company9s bills payable consists of the Interbank loans payable and Securities sold under
repurchase agreements amounting to P84.80 million and P70.38 million as of December 31, 2023 and2022, respectively.
Interbank loans payable consists of foreign currency denominated borrowings of the Parent Company
with annual interest ranging from 0.39% to .08%, from 0.38% to .25%, and from 0.31% to 1. 0%, in2023, 2022, and 2021, respectively.
The carrying amount of foreign currency denominated investment securities at amorti ed cost pledgedby the Parent Company as collateral for its interbank borrowings amounted to P82.00 billion and
P 7.00 billion as of December 31, 2023 and 2022, respectively. The carrying amount of the peso
denominated investment securities at amorti ed cost pledged by the Parent Company as collateral for its
interbank borrowings amounted to P9.90 billion and P14. 3 billion as of December 31, 2023 and 2022,
respectively.
The aggregate fair value of investment securities at amorti ed cost pledged as collateral amounted toP85.15 billion and P75.45 billion as of December 31, 2023 and 2022, respectively. The aggregate fairvalue of financial assets at FV CI pledged as collateral amounted to P5.49 billion and nil as ofDecember 31, 2023 and 2022, respectively.
As of December 31, 2023 and 2022, margin deposits amounting to P9.09 billion and P7. 0 billion,
respectively, are deposited with various counterparties to meet the collateral requirements for its
interbank loans payable.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

115

11
20.

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This account consists of:


Accrued payable for employee benefits
Accrued interest payable
Accrued ta es and other licenses
Accrued other e penses payable

21.

2023
2 4 023
4 091 346 49
1 146 33
9 210

2022
P2, 12, 29
2,0 , 9 
0 , 
1, , 1 
P6,11 , 92023
2 4 023
3 00 606
2 6 603 93
499 422022
P2, 12, 0
1, 0 , 6
1 , 2 1,006,9 1
P , 99,62 

2023

2022

2023

2022

904 031
3 34 91 030 4 9
2 269 296

P6, 6,
2,9 0, 01
901, 
2,912,

4394
2292
1 030 4 9
2 269 296

P ,69 ,9 2
2, 9 , 62
901, 
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20 91
414 14

2, 1
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0 602
6 6 961414 14

1 103 33
1 29 01

611,12
1 ,620, 0

2, 2 
02,6 6
1,2 1

60,6 
12,9 , 2 292 430 393
322 6
1 620

2 ,
22,6 9,12
P16,06 ,96 t er ia i itie
This account consists of:

Accounts payableease liabilities ( ote 2 )ue to P IC
Acceptances payableE pected credit losses on off-balance sheet
e posures ( ote 16)
ue to the Treasurer of the Philippines
Other credits dormant
Margin deposits
Miscellaneous
ithholding ta es payable
Retirement liabilities ( ote 2 )12

929 064
42 2
20 0

20 0
12 9 9 33

2,261

2,261
P1 , 60,


Accounts payable includes payables to suppliers and service providers, and loan payments and othercharges received from customers in advance.
Miscellaneous mainly includes sundry credits, inter office float items, and dormant deposit accounts.

*SGVFS187254*

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

117
22.

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i e aneopen eService Charges, Fees and Commissions
Details of this account are as follows:
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C HI NA BANK I NG COR P O R AT I O N

117

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The following tables present both the roup9s and the Parent Company9s assets and liabilities as ofDecember 31, 2023 and 2022 analy ed according to whether they are expected to be recovered or settled
within one year and beyond one year from the respective reporting date:
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118

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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C HI NA BANK I NG COR P O R AT I O N

119

120
24.

it

2023

Common stock P10.00 par value
Authori ed shares
Issued and outstanding
Balance at beginning of year
Issuance through stock grant
Balance at end of year2022
Shares

3 300 000 000
2 691 2212
2 100
2 691 340 312

Amount, 00,000,000
26 912

2
21
26 913 403

2,691,2 ,212

P26,912, 2I

2,691,2 ,212

P26,912, 2

The Parent Company shares are listed in the Philippine Stock Exchange.
The summari ed information on the Parent Company9s registration of securities under the Securities
Regulation Code follows:
Date of SEC Approval
April 12, 1991
ctober 7, 1993
August 30, 1994
July 2 , 1995
September 12, 1997
September 5, 2005
September 14, 2007
September 5, 2008
August 29, 2014
September 29, 2018

Authori ed Shares
100,000,000
150,000,000
200,000,000
250,000,000
500,000,000
1,000,000,000
1, 00,000,000
2,000,000,000
2,500,000,000
3,300,000,000

"###"&##"##)!)"#" #

As reported by the Parent Company9s transfer agent, Stock Transfer Service, Inc., the total number ofstockholders is 1,82 and 1,875 as of December 31, 2023 and 2022, respectively.
entennial Stoc rant
In light of the Parent Company9s 100th anniversary, the Board of Directors approved on August 5, 2020 a
Centennial Stock rant Plan to issue common shares to eligible grantees.
The Centennial Stock rant Plan was approved and ratified by the stockholders on ctober 1, 2020 andthe approvals of the relevant regulatory agencies were completed in 2021. New shares were issued fromthe Parent Company9s authori ed but unissued shares in favor of the roup9s regular employees andcertain other officers and contractual employees as of August 1 , 2020, numbering around 8,400.

*SGVFS187254*

120

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

121n August 9, 2021, the Philippine Stock Exchange (PSE) approved the Parent Company9s application tolist 5,451, 00 common shares, with a par value of P10.00 per share, to cover the roup9s Centennial
Stock rant Plan. The Parent Company issued a total of 5.39 million shares on September 1, 2021. This
resulted in an increase in the Parent Company9s Capital stock9 and Capital paid in excess of par value9
totaling P132.02 million as of the grant date. The difference in the fair value of the stock grants upon
issuance of shares is recogni ed in the profit or loss.
Dividends
Details of the Parent Company9s cash dividend payments follow:


Cash Dividends
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
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Stock Dividends
/B3=431:/@/B7=<#/@16 #/G 
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SurplusThe computation of surplus available for dividend declaration in accordance with SEC Memorandum
Circular No. 11 issued in December 2008 differs to a certain extent from the computation following BSP
guidelines.
As of December 31, 2023 and 2022, surplus includes the amount of P1.37 billion, net of deferred tax
effect of P45 .17 million, representing transfer of revaluation increment on land which was carried atdeemed cost when the roup transitioned to PFRS in 2005 (Note 12). This amount will be available tobe declared as dividends upon sale of the underlying land.
In the consolidated financial statements, a portion of the roup9s surplus corresponding to the net
earnings of the subsidiaries and associates amounting to P10.41 billion and P7.43 billion as ofDecember 31, 2023 and 2022, respectively, is not available for dividend declaration. The accumulated
equity in net earnings becomes available for dividends upon declaration and receipt of cash dividends
from the investees.

*SGVFS187254*

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122
Reserves
In compliance with BSP regulations, 10.00% of the Parent Company9s profit from trust business isappropriated to surplus reserve. This annual appropriation is required until the surplus reserves for trust
business equals 20.00% of the Parent Company9s authori ed capital stock.
pon adoption of PFRS 9, BSP requires appropriation of a portion of the roup9s Surplus at an amountnecessary to bring to at least 1% the allowance for credit losses on loans (Note 1 ).
Capita ana ement
The primary ob ectives of the roup9s capital management are to ensure that it complies with externallyimposed capital requirements and that it maintains strong credit ratings and healthy capital ratios in orderto support its business and to maximi e shareholders9 value.
The roup manages its capital structure and makes ad ustments to it in light of changes in economic
conditions and the risk characteristics of its activities. In order to maintain or ad ust the capital structure,
the roup may ad ust the amount of dividend payment to shareholders, return capital to shareholders or
issue capital securities. No changes were made in the ob ectives, policies, and processes as ofDecember 31, 2023 and 2022.
Regulatory ualifying Capitalnder existing BSP regulations, the determination of the Parent Company9s compliance with regulatory
requirements and ratios is based on the amount of the Parent Company9s unimpaired capital (regulatory
capital) as reported to the BSP. This is determined on the basis of regulatory accounting policies which
differ from PFRS in some respects.
In addition, the risk based capital ratio of a bank, expressed as a percentage of qualifying capital torisk weighted assets (R A), should not be less than 10.00% for both solo basis (head office andbranches) and consolidated basis (Parent Company and subsidiaries engaged in financial allied
undertakings but excluding insurance companies). ualifying capital and R A are computed based on
BSP regulations. R A consists of total assets less cash on hand, due from BSP, loans covered byhold out on or assignment of deposits, loans or acceptances under letters of credit to the extent coveredby margin deposits and other non risk items determined by the Monetary Board of the BSP.
n August 4, 200 , the BSP, under BSP Circular No. 538, issued the prescribed guidelines implementing
the revised risk based capital adequacy framework for the Philippine banking system to conform to BaselII capital adequacy framework. The BSP guidelines took effect on July 1, 2007. Thereafter, banks wererequired to compute their CAR using these guidelines.
Standardi ed credit risk weights were used in the credit assessment of asset exposures. Third party credit
assessments were based on ratings by international credit assessment agencies @ Standard Poor s,
Moody s, and Fitch, and BSP recogni ed domestic credit assessment agencies such as PhilRatings. Per
BSP guidelines, domestic debt issuances may be rated by BSP recogni ed domestic credit assessment
agencies or by international credit assessment agencies which have developed a national rating system
acceptable to the BSP. Internationally issued debt obligations shall be rated by BSP recogni ed
international credit assessment agencies only.

*SGVFS187254*

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

123
n January 15, 2013, the BSP issued Circular No. 781, asel III Im lementing uidelines on Minimum
a ital Re uirements which provides the implementing guidelines on the revised risk based capital
adequacy framework particularly on the minimum capital and disclosure requirements for universal
banks and commercial banks, as well as their subsidiary banks and quasi banks, in accordance with theBasel III standards. The circular took effect on January 1, 2014.
The Circular sets out a minimum Common Equity Tier 1 (CET1) ratio of .00% and Tier 1 capital ratioof 7.50%. It also introduces a capital conservation buffer of 2.50% comprised of CET1 capital. The
BSP9s existing requirement for Total CAR remains unchanged at 10.00% and this ratio shall bemaintained at all times.
Further, existing capital instruments as of December 31, 2010 which do not meet the eligibility criteria
for capital instruments under the revised capital framework shall no longer be recogni ed as capital upon
the effectivity of Basel III. Capital instruments issued under BSP Circular Nos. 709 and 71 (thecirculars amending the definition of qualifying capital particularly on ybrid Tier 1 and ower Tier 2
capitals), starting January 1, 2011 and before the effectivity of BSP Circular No. 781, shall be recogni ed
as qualifying capital until December 31, 2017. In addition to changes in minimum capital requirements,
this Circular also requires various regulatory ad ustments in the calculation of qualifying capital.
n April 28, 2020, the BSP issued BSP Memorandum No. M 2020 034 Relaxation in t e redit Ris
eig t for Loans to MSMEs under t e SP s Ris ased a ital Ade uac ramewor which provides
temporary relaxation in the assigned credit risk weight for loans to micro, small, and medium enterprises(MSMEs) for purposes of computing compliance with the BSP9s Risk Based Capital Adequacy
Frameworks.
The following exposures to MSMEs, as defined under Basel III shall be assigned a credit risk weight of
50 percent:a. MSME exposures that meet the criteria of qualified MSME portfolio, andb. Current MSME exposures that do not qualify as a highly diversified MSME portfolio.
The foregoing provision under BSP Memorandum No. M 2020 034 shall apply until December 31, 2021.
owever, it was extended until December 31, 2022 by the subsequent issuance of BSP Memorandum No.
M 2022 004 Extension of SP Prudential Relief Measures and further extended until June 30, 2023 by
the subsequent issuance of BSP Memorandum No. M 2022 041 Extension of SP Prudential Relief
Measure on t e Relaxation in t e redit Ris
eig t for Loans to MSMEs under t e SP s Ris aseda ital Ade uac ramewor s.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

123

124
The CAR of the roup and the Parent Company as of December 31, 2023 and 2022 as reported to the
BSP are shown in the table below.

$ '5/8'1



+8$/+6 '5/8'1
$/+6 '5/8'1
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

43741/*'8+*  
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The roup and the Parent Company have complied with all externally imposed capital requirements
throughout the period.
The issuance of BSP Circular No. 39 covering the ICAAP in 2009 supplements BSP9s risk based capital
adequacy framework under Circular No. 538. In compliance with this circular, the Parent Company has
adopted and developed its ICAAP framework to ensure that appropriate level and quality of capital are
maintained by the roup. nder this framework, the assessment of risks extends beyond the Pillar 1 setof credit, market, and operational risks and onto other risks deemed material by the Parent Company.
The level and structure of capital are assessed and determined in light of the Parent Company9s businessenvironment, plans, performance, risks, and budget, as well as regulatory edicts. BSP normally requires
submission of the ICAAP document every March 31.
owever, for 2021 and 2022, in view of the pandemic, the BSP ad usted the deadline for submission
from March 31 to June 30. It reverted back to March 31 for 2023. The roup has also complied withthis requirement.
n April 1 , 2021, the BSP issued Circular No. 1113, which requires that the recovery plan shall be
distinct and separate from the ICAAP document. It should be submitted every June 30, beginning in
2022. n ctober 18, 2022, the BSP issued Circular No. 1158, which enumerates the new guidelines onrecovery plan of banks. The roup has complied with the requirements for the 2023 submission.

*SGVFS187254*

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20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

125
Le erage Ration June 9, 2015, BSP issued circular No. 881, which approved the guidelines for the implementation of
the Basel III everage Ratio in the Philippines. The Basel III everage Ratio is designed to act as asupplementary measure to the risk based capital requirements. The leverage ratio intends to restrict thebuild up of leverage in the banking sector to avoid destabili ing deleveraging processes which candamage the broader financial system and the economy. ikewise, it reinforces the risk based
requirements with a simple, non risk based <backstop= measure. The Basel III leverage ratio is definedas the capital measure (the numerator) divided by the exposure measure (the denominator). The
monitoring of the leverage ratio was implemented as a Pillar 1 minimum requirement effective on 1 July
2018. The Basel III leverage ratio of the banks shall not be less than 5.00%.
The B R of the roup and the Parent Company as of December 31, 2023 and 2022 as reported to the
BSP are shown in the table below.
43741/*'8+*
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Li uidit o erage Ration 18 February 201 , BSP issued Circular No. 905 which approved the attached liquidity standards,
which include guidelines on liquidity coverage ratio ( CR) and CR disclosure standards that areconsistent with the Basel III framework. Banks are required to adopt Basel III s iquidity Coverage
Ratio ( CR) aimed at strengthening the short term liquidity position of banks. This requires banks tohave available igh uality iquid Assets (A) to meet anticipated net cash outflow for a 30 day
period under stress conditions. The standard prescribes that, under a normal situation, the value of theliquidity ratio be no lower than 100% on a daily basis because the stock of unencumbered
A isintended to serve as a defense against potential onset of liquidity stress. Beginning January 1, 2019, theprescribed minimum ratio of CR is 100.00%. As of December 31, 2023 and 2022, the CR in single
currency is 127.02% and 117.00%, respectively, for the roup and 125. 1% and 115.79%, respectively,
for the Parent Company.
et Stable unding Ration 24 May 2018, BSP issued Circular No. 1007 which approved the implementing guidelines on the
adoption of the Basel III Framework on iquidity Standards Net Stable Funding Ratio (NSFR). Banks
are required to adopt Basel III s NSFR aimed to promote long term resilience of banks against liquidity
risk. Banks shall maintain a stable funding profile in relation to the composition of its assets and offbalance sheet activities. The NSFR complements the iquidity Coverage Ratio ( CR), which promotes
short term resilience of a Bank9s liquidity profile. The roup started monitoring and reporting NSFR to
the BSP in 2019. The banks shall maintain a NSFR of at least 100.00% at all times. As of
December 31, 2023 and 2022, the NSFR is 113.47% and 115.9 %, respectively, for the roup and
111.84% and 114. 3%, respectively, for the Parent Company.

*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

125

12
25.

etirementan

The roup has separate funded noncontributory defined benefit retirement plans covering substantially
all its officers and regular employees. The retirement plans are administered by the Parent Company9s
Trust roup which acts as the trustee of the plans. nder these retirement plans, all covered officers andemployees are entitled to cash benefits after satisfying certain age and service requirements. The latest
actuarial valuation studies of the retirement plans were made as of December 31, 2023.
The roup9s annual contribution to the retirement plan consists of a payment covering the current service
cost, unfunded actuarial accrued liability, and interest on such unfunded actuarial liability.
The amounts of net defined benefit asset in the balance sheets follow:

et plan assets ( ote 1 )Retirement liabilities ( ote 21)2023
34 9 330 393
04 0

2022
P 00, 16
(22,6 9)
P , 2

66

2023

2022
P2 ,12066

P2 ,120*SGVFS187254*

126

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

127
The movements in the defined benefit asset, present value of defined benefit obligation and fair value of plan assets follow:






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*SGVFS187254*

C HI NA BANK I NG COR P O R AT I O N

127

129
The roup and the Parent Company is recommended to contribute to its defined benefit pension planin 2024 amounting to P72.23 million and nil, respectively.
In 2023 and 2022, the ma or categories of plan assets as a percentage of the fair value of total plan
assets are as follows:
Con o i ate
2022
25.84%
13.73%
0.09%
57.35%
2.99%
100.00%Parent Company shares (Note 30)
Equity instruments
Cash and cash equivalents
Debt instruments
ther assets

arent Compan
2022
29.4 %
13.03%
0.10%
5 . 2%
0.79%
100.00%The following table shows the breakdown of fair value of the plan assets:
Con o i ate
Deposits in banks
Financial assets at FVTP
uoted debt securities
uoted equity securities
Parent Company shares
Investments in unit investment
trust fundoans and receivable
Investment properties
ther assets

2022
P5,28

arent Compan

2022
P5,24

3,235, 22795,788
1,498,200

2,879,178
2,570
1,498,200

89,70411
3,000
170,352
P5,798,0 8

11
3,000
3 , 33
P5,084,943

Investment properties comprise properties located in Manila

The principal actuarial assumptions used in 2023 and 2022 in determining the retirement liability forthe roup9s and Parent Company9s retirement plans are shown below:
arent

C

Parent
4. 7%
.70%
.00%

I

CI I C C

CCI

C CC

C

C

CBSI

2022
CIBI CBC PCCI

CBCC

CBSC

4.14%
.52%
.00%

4.14%
.79%
.00%

4.35%
.79%
.00%

4.55%
.79%
.00%

Discount rate:
January 1
December 31
Salary increase rate

Discount rate:
January 1
December 31
Salary increase rate

4.91%
.93%
.00%

*SGVFS187254*
128

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

130
The sensitivity analysis below has been determined based on the impact of reasonably possible
changes of each significant assumption on the defined benefit liability as of the end of the reporting
period, assuming all other assumptions were held constant:
31 2023
iscount rate
( 1%)
( 1%)

942
110 4

22 213
2 113

2 16
2 1

3
4

1

2 40
3 016

22
636

Salary increase rate
( 1%)
( 1%)

104 62
6 103

26 01
21 63

26 0
2 136

43 0
3 4

2 909
2 06

613
14

ecember 1, 2022
iscount rate
( 1%)
( 1%)

ParentCBSICIBI

CBC PCCI

CBCC

CBSC

(P6 ,9 )2, 12(P19, 19)
2 ,(P906)
1,11(P ,109),6(P1, 2 )2,191(P 09)
6

Salary increase rate
( 1%)
( 1%)

, 0(6 ,002)22, 61(19,62 )

1,0 6
( 91)

,
( ,0 2)

2,1 0(1, 2 )

6
( 0 )The weighted average durations (in years) of the defined benefit obligation are presented below:
e em er

December 31,
2022
8

Parent Company
CBSI
CIBI
CBC PCCI
CBCC
CBSC

9
12
9
9

The maturity analyses of the undiscounted benefit payments as of December 31, 2023 and 2022 are as
follows:
.,.5+.9   
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B= G3/@A#=@3B6/< G3/@A
B= G3/@A#=@3B6/< G3/@A&/@3<B&    ) &   &   

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*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

129

131
The defined benefit plan exposes the roup and the Parent Company to actuarial risks such as
longevity risk, investment risk, market risk, and salary risk.
2 .

eri ati e inan ia In tr ment
Derivative Contracts not Designated as edges
ccasionally, the Parent Company enters into forward exchange contracts as an accommodation to its
clients. These derivatives are not designated as accounting hedges. As of December 31, 2023 and2022, the fair values of these derivatives follow:
2023
Currency forwards
Interest rate swaps (IRS) 
Futures
Cross currency swaps
arrants
41 44
444 62162311 414 0 913
296
10 13
3 440

93

22

2022
erivative
Asset
P 9 ,
,29
9,90
2 ,1 210,
P1,01 ,662

erivative
iability
P1,02 ,0 2
21, 9
121
P1, 9, 61urrenc forwards
As of December 31, 2023 and 2022, the aggregate notional amount of outstanding currency forwards
and its weighted average rate are as follows:%#522(7
:75(6(4,8,',4







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" Interest rate swa s
The aggregate notional amounts of the outstanding IRS as of December 31, 2023 and 2022 are as
follows:






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-.67526*;.-
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##*SGVFS187254*
130

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

132
utures
The aggregate notional amounts of the outstanding futures amounted to S 35 million andS 2 million as of December 31, 2023 and 2022, respectively.
ross currenc swa s
The aggregate notional amounts of the outstanding CCS as of December 31, 2022 are as follows: '%-744*9L L
L
CGL
CL
LL

otionalAmount2022
erivative
Asseterivative
iabilityL   L   LL
&   &   


&

&

L



Fair Value Changes of Derivatives
The net movements in fair value changes of derivative instruments are as follows:
2022
P82,078(1, 21,474)
1,005,497(P533,899)

Balance at beginning of year
Fair value changes during the year
Net settled transactions
Balance at end of year

The net movements in the value of the derivatives are presented in the statements of income under thefollowing accounts:
Foreign exchange losses
Trading and securities gain
(Note 22)2022
(P2,811, 74)

2021(P378,4 9)

1,190,200(P1, 21,474)

9,013(P309,45 )et movements in the value related to IRS and futures

Interest income on IRS in 2023, 2022, and 2021 amounted to P280. 1 million, P227.20 million, andP332.18 million, respectively, while interest expense on IRS in 2023, 2022, and 2021 amounted toP290.57 million, P250. 4 million, and P350.32 million, respectively.
Derivative Contracts Designated as edges
The Parent Company enters into hedging transactions, particularly cash flow hedges, to hedge its
exposure to variability in future cash flows associated with its assets, liabilities, or highly probable
forecast transactions. The following table shows the summary of the hedging transactions of the
Parent Company designated as cash flow hedges and the related balances as of December 31, 2023
and 2022, respectively:-,/16/6:;9<5-6;

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*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

131

133


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As of December 31, 2023 and 2022, the Parent Company assessed that the hedging relationships are
expected to be highly effective.
The aggregate net interest income on the IRS designated as hedge amounted to P2.78 billion andP 20.19 million in 2023 and 2022, respectively. The aggregate net interest expense on the IRS
designated as hedge amounted to P22 .51 million in 2021. The ineffective portion of the hedging
relationships recogni ed under Trading and securities gain (loss) net9 in the statements of income
is a gain amounting to P124.52 million for 2023 (Note 22).
The cost of hedging pertaining to the amorti ation of the forward element presented under Foreignexchange gain (loss) net9 in the statements of income amounted to P7.90 billion andP8 .80 million for 2023 and 2022, respectively.

*SGVFS187254*
132

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

134
27.

ea e Contra t
The lease contracts are for periods ranging from one (1) to 15 years from the dates of the contracts
and are renewable under certain terms and conditions. Various lease contracts include escalation
clauses, most of which bear an annual rent increase of 5.00% to 10.00%.
Movements in the lease liabilities account are as follows:43741/*'8+*    
     

'6+38425'3=              Expenses related to short term leases amounting to P 04.55 million and P484.38 million for theroup and Parent Company in 2023, respectively, and P713.25 million and P5 5.72 million for theroup and Parent Company in 2022, respectively, are included in the ccupancy cost9 account.
Total cash outflows for leases amounted to P1.52billion and P1.12 billion for the roup and Parent
Company in 2023, respectively, and P1.3 billion and P0.97 billion for the roup and Parent
Company in 2022, respectively.
The roup and the Parent Company have also entered into commercial property leases on its
investment properties (Note 13).
Future minimum rentals receivable under noncancellable operating leases follow:
43741/*'8+*  

'6+38425'3= 








  



Future minimum rentals payable under noncancellable leases follow:
43741/*'8+*    
    '6+38425'3=          *SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

133

135
28. In ome ant er a e

Income taxes include corporate income tax and FCD final taxes, as discussed below, and final tax
paid at the rate of 20.00% on gross interest income from government securities and other deposit
substitutes. These income taxes, as well as the deferred tax benefits and provisions, are presented as
Provision for income tax9 in the statements of income.
Republic Act (RA) No. 9337, An Act Amending ational Internal Re enue ode, as amended by RA
109 3 otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) and RA 11534
otherwise known as Corporate Recovery and Tax Incentives for Enterprises (CREATE), provides that
RCIT rate shall be 25.00% while interest expense allowed as a deductible expense is reduced to
20.00% of interest income sub ect to final tax.
An MCIT of 1.00% for gross income from January 1, 2023 to June 30, 2023, and 2.00% for grossincome from July 1, 2023 to December 31, 2023, under Revenue Memorandum Circular (RMC) No.
9 2023 pursuant to CREATE aw, are computed and compared with the RCIT. Any excess MCIT
over RCIT is deferred and can be used as a tax credit against future income tax liability for the next
three years. In addition, the N C is allowed as a deduction from taxable income in the next three
years from the year of inception.
Effective in May 2004, RA No. 9294 restored the tax exemption of FCD s and offshore banking
units ( B s). nder such law, the income derived by the FCD from foreign currency transactions
with nonresidents, B s, local commercial banks including branches of foreign banks is tax exempt
while interest income on foreign currency loans from residents other than B s or other depository
banks under the expanded system is sub ect to 10.00% gross income tax. All other income of the
FCD is sub ect to the 25.00% corporate tax under the CREATE aw.
Current tax regulations also provide for the ceiling on the amount of entertainment, amusement, andrecreation (EAR) expense that can be claimed as a deduction against taxable income. nder the
regulations, EAR expense allowed as a deductible expense is limited to the actual EAR paid or
incurred but not to exceed 1.00% of the Parent Company9s net revenue.
TRAIN aw
RA No. 109 3, the Tax Reform for Acceleration and Inclusion (TRAIN), is the first package of thecomprehensive tax reform program of the government. The bill was signed into law on
December 19, 2018 and took effect on January 1, 2018, amending some provisions of the oldPhilippine tax system.
Except for resident foreign corporations, which, under the said law, is sub ect to 7.50%, tax oninterest income of foreign currency deposit was increased to 15.00% under TRAIN. Documentarystamp tax on bank checks, drafts, certificate of deposit not bearing interest, all debt instruments, billsof exchange, letters of credit, mortgages, deeds, and others are now sub ected to a higher rate.
CREATE aw
RA 11534 otherwise known as Corporate Recovery and Tax Incentives for Enterprises (CREATE)
was signed into law last March 2 , 2021. The law became effective on April 11, 2021, fifteen (15)days after its publication in a newspaper of general circulation on March 27, 2021.

*SGVFS187254*
134

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

13
The key changes to the Philippine tax law pursuant to the CREATE aw which have an impact on the
Bank are the following:•••

Effective July 1, 2020, regular corporate income tax (RCIT) rate is reduced from 30.00% to
25.00% for domestic and resident foreign corporations
Minimum corporate income tax (MCIT) rate reduced from 2.00% to 1.00% of gross income
effective July 1, 2020 to June 30, 2023. From July 1, 2023, RMC No. 9 2023 reverts the rate of
MCIT to 2.00% based on the gross income of domestic and resident foreign corporations,
including ffshore Banking nits and Regional perating eadquarters andInterest income of foreign currency remittance transaction deposit received by resident foreign
corporations are now sub ect to 15.00% final tax.

In 2021, the roup applied the provisions of the CREATE aw on its income tax payable, deferred
tax assets, and deferred tax liabilities as of December 31, 2020.
There were no tax related contingent liabilities and contingent assets arising from the changes in the
tax rates due to CREATE aw.
RRn March 15, 2011, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 4
2011 which prescribed the attribution and allocation of expenses between FCD s EFCD s or B
and RB and within RB .
n April , 2015, the Parent Company and other member banks of the Bankers Association of thePhilippines (BAP), filed a Petition for Declaratory Relief with Application for Temporary Restrainingrder (TR ) and or rit of Preliminary In unction with the Regional Trial Court of Makati (Makati
Trial Court). Further, in Civil Case No. 15 287, the Parent Company and other BAP member banks
assailed the validity of RR 4 2011 on the ground, among others, that (a) the RR violates thepetitioner banks substantive due process rights (b) it is not only illegal but also unfair (c) that itserves as a deterrent to banks to invest in capital market transactions to the pre udice of the economy(d) it sets a dangerous precedent for the disallowance of full deductions due to the prescribed methodof allocation and (e) it violates the equal protection clause of the Constitution.
n April 8, 2015, the Makati Trial Court issued a TR en oining the BIR from enforcing RR 4 2011.
Also, on April 25, 2015, the Makati Trial Court issued a rit of Preliminary In unction en oining the
BIR from enforcing, carrying out, or implementing in any way or manner RR 4 2011 against the
Parent Company and other BAP member banks, including issuing Preliminary Assessment Notice or
Final Assessment Notice against them during the pendency of the litigation, unless sooner dissolved.
n June 10, 2015, the Makati Trial Court issued a Confirmatory rder stating that the TR and ritof Preliminary In unction also prohibits the BIR from ruling or deciding on any administrative matter
pending before it in relation to the sub ect revenue regulations and insofar as the Parent Company andother BAP member banks are concerned.
n May 25, 2019, the Makati Trial Court issued a decision annulling RR 4 2011 and making theof Preliminary In unction permanent.

rit

n May 10, 2022, the Supreme Court Decision promulgated on December 1, 2021 ruled that RR
No. 4 2011 is invalid and void.

*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

135

137
The provision for income tax consists of:C@@3<B
 7</:B/F ( *343@@32


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&   &            &  & #           #   #*9.6;758*6?




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The details of net deferred tax assets follow:2023
eferred ta assets (liabilities) on 
Allowance for impairment and credit
losses
Revaluation increment on land
( otes 12 and 2 )Fair value ad ustments on asset
foreclosure and dacion transactions net of depreciated portion
et defined benefit asset
erivative contracts designated ashedgesOthers

041 4

2022
P , 2,22023
3 63 904

2022
P ,612, 1

4 61 1( 6,1 1)

4 61 1( 6,1 1)46
1 1 40(2 ,96 )(99, 0 )201 9111
96(11 , 0 )( , 1 )

1 0 323 1 102
6 0 6

0,092
P , 2,692

1 0 32336 1
4 961 0 6

191, 6
P ,1 0,610

thers pertains primarily to the deferred tax assets on derivatives, leases, and foreign exchange
revaluation.
The details of net deferred tax liabilities follow:

eferred ta liabilities (assets) on 
Branch licenses arising fromac uisition of P BFair value ad ustments on net
assets liabilities of P B andnity Bank, and others

2023

2022

00

P6 , 00P

1 4 614
92 114

1 6,9 2
P 9 , 2

P

63

2023

2022

In 2023, deferred tax credited to CI amounted to P 47.25 million and P 30.88 million for the roup
the Parent Company, respectively. In 2022, deferred tax debited to CI amounted to P35.08 million
and P38.10 million for the roup and the Parent Company, respectively.
The roup did not set up deferred tax assets on the following temporary differences as it believes that
it is highly probable that these temporary differences will not be reali ed in the near foreseeable
future:Allowance for impairment and credit
lossesOthers

2023

2022

6 2 4
6 2 4

P 99, 016, 61
P916, 1

2023

2022
P
P

*SGVFS187254*
136

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

138
The reconciliation of the statutory income tax to the provision for income tax follows:)B/BCB=@G7<1=;3B/F
*/F34431BA=4+7<1=;3$=<B/F/0:37<1=;3
<B3@3AB7<1=;3
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29.

r t




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
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&                          

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 #  
&          #  &               
 



 &   

peration

Securities and other properties (other than deposits) held by the Parent Company in fiduciary oragency capacities for clients and beneficiaries are not included in the accompanying balance sheets
since these are not assets of the Parent Company (Note 31).
In compliance with the requirements of current banking regulations relative to the Parent Company9s
trust functions: (a) government bonds included under financial assets at FV CI with total face valueof P2.91 billion and P2.38 billion as of December 31, 2023 and 2022, respectively, are deposited with
the BSP as security for the Parent Company9s faithful compliance with its fiduciary obligations (Note9) and (b) a certain percentage of the Parent Company9s trust fee income is transferred to surplus
reserve. This yearly transfer is required until the surplus reserve for trust function equals 20.00% of
the Parent Company9s authori ed capital stock.

30.

e ate

art

ran a tion

Parties are considered to be related if one party has the ability, directly or indirectly, to control theother party or exercise significant influence over the other party in making financial and operating
decisions. The roup9s related parties include:••••

key management personnel, close family members of key management personnel and entities
which are controlled, significantly influenced by or for which significant voting power is held by
key management personnel or their close family members,
significant investors,
subsidiaries, oint ventures and associates and their respective subsidiaries, andpost employment benefit plans for the benefit of the roup9s employees.

The roup has several business relationships with related parties. Transactions with such parties arenormally made in the ordinary course of business and based on the terms and conditions discussed
below. Transactions with related parties are settled in cash, unless otherwise indicated.
Transactions with Retirement Plans
nder PFRS, certain post employment benefit plans are considered as related parties. The roup hasbusiness relationships with a number of its retirement plans pursuant to which it provides trust andmanagement services to these plans. Income earned by the roup and Parent Company from such

*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

137

139
services amounted to 5 .74 million and 49.77 million, respectively, in 2023, 53.24 million and
4 .24 million, respectively, in 2022, and 49.48 million and 42.91 million, respectively, in 2021.
The roup9s retirement funds may hold or trade the Parent Company9s shares or securities.
Significant transactions of the retirement fund, particularly with related parties, are approved by theTrust Investment Committee (TIC) and the Related Party Transaction (RPT) Committee of the Parent
Company. The members of the TIC are directors and key management personnel of the Parent
Company.
A summary of transactions with related party retirement plans follows:2023
46
1 6 3 69
103 019
1 6 3 69
4 9

eposits in banks
Financial assets at F TP 
ividend incomeInterest income
Total market value of shares
umber of shares held (in thousands)

2022
P ,2
1, 9 ,200, 9
6
1, 9 ,200
, 9

2023
19
1 6 3 69
103 019
1 6 3 69
4 9

2022
P ,2 6
1, 9 ,200, 9
1, 9 ,200, 9

In 2021, dividend income and interest income of the retirement plan from investments andplacements amounted to 54.58 million and 0.04 million, respectively, for the roup, and 54.58
million and 0.02 million, respectively, for the Parent Company.
Financial assets at FVTP represent shares of stock of the Parent Company. Voting rights over the
Parent Company9s shares are exercised by an authori ed trust officer.
Remunerations of Directors and other ey Management Personnel
ey management personnel are those persons having authority and responsibility for planning,
directing, and controlling the activities of the roup, directly or indirectly. The roup considers themembers of the ManCom to constitute key management personnel for purposes of PAS 24.
Total remunerations of key management personnel are as follows:
)6=@BB3@;3;>:=G3303<347BA
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   #   

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
&  &  
& #    #   #*9.6;758*6?
& &

&  &  Members of the B D are entitled to a per diem and to four percent (4.00%) of the Parent Company9s
net earnings, with certain deductions in accordance with BSP regulation. n July 18, 2022, the SEC
approved the amendment of the Parent Company9s by laws increasing the per diem of the directors
for attendance at each meeting of the Board or of any committees to an amount up to P10,000(previously, a fixed amount of P500.00) to align with the current industry practice and standards.
Non executive directors do not receive any performance related compensation. Directors9
remuneration covers all Parent Company9s Board activities and membership of committees andsubsidiary companies.
The roup also provides banking services to directors and other key management personnel andpersons connected to them. These transactions are presented in the tables below.

*SGVFS187254*
138

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

140
ther Related Party Transactions
Transactions between the Parent Company and its subsidiaries meet the definition of related party
transactions. Transactions between the roup and its associated companies also qualify as related
party transactions. Details of the Parent Company9s subsidiaries and associate are disclosed in
Notes 1 and 11.
rou
Related party transactions of the roup by category of related party are presented below.
%5)+138
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'2/;/+:/-2/-4371+--8=7<;?3<2+77=+5+>/:+1/:+</80  (7;/-=:/.8003-/:;-:/.3<-+:.+--8=7<;?3<237</:/;<80+7.58+7+--8=7<;?3<2+>/:+1/:+</ '2/;/+:/-2/-4371;+>371;+7.<36/./98;3<;?3<2+77=+5+>/:+1/37</:/;<:+</;
:+713710:86 <8&/-=:/.+7.=7;/-=:/.58+7;+68=7<371<8$ ,355387+7.$ ,355387
:/;9/-<3>/5A?3<237</:/;<:+</;:+71371
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</:6<86+<=:3<A,/<?//7
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 6355387 
'2/;/+:/-2/-4371+7.;+>371;+--8=7<;
?3<2+77=+5+>/:+1/37</:/;<:+</;:+71371
0:86 <8

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'2/;/+:/-2/-4371+--8=7<;?3<2+77=+5+>/:+1/:+</80  (7;/-=:/.8003-/:;-:/.3<-+:.+--8=7<;
?3<237</:/;<80 +7.58+7+--8=7<;
?3<2+>/:+1/:+</ '2/;/+:/-2/-4371;+>371;+7.<36/./98;3<;?3<2+77=+5+>/:+1/37</:/;<:+</;:+713710:86 <8&/-=:/.+7.=7;/-=:/.58+7;+68=7<371<8$ ,355387+7.$
,355387
:/;9/-<3>/5A?3<237</:/;<:+</;:+71371
0:86 <8 ?3<2:/6+37371
</:6<86+<=:3<A,/<?//7 A/+:;<8 A/+:;?3<2+558?+7-/08:-:/.3<58;;/;80$
  6355387 
'2/;/+:/-2/-4371+7.;+>371;+--8=7<;
?3<2+77=+5+>/:+1/37</:/;<:+</;
:+713710:86 <8*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

139

141
Interest income earned and interest expense incurred from the above loans and deposit liabilities in
2023, 2022, and 2021 follow:
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&   &      Related party transactions of the roup with significant investor, associate, and other related parties
pertain to transactions of the Parent Company with these related parties.
Parent om an
Related party transactions of the Parent Company by category of related party are presented below.
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9 


 
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 (7;/-=:/.8003-/:;-:/.3<-+:.+--8=7<;?3<237</:/;<80   '2/;/+:/-2/-4371;+>371;+7.<36/./98;3<+--8=7<?3<2
+77=+5+>/:+1/37</:/;<:+</;:+713710:86 <8   &/-=:/.+7.=7;/-=:/.58+7;+68=7<371<8$ ,355387+7.$ ,355387:/;9/-<3>/5A?3<237</:/;<:+</;:+713710:86  <8  ?3<2:/6+37371</:6<86+<=:3<A,/<?//7
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 
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*SGVFS187254*
140

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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+>/:+1/37</:/;<:+</;:+713710:86 <8  
The related party transactions shall be settled in cash.
Interest income earned and interest expense incurred from the above loans and deposit liabilities in
2023, 2022, and 2021 follow:
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& &  utright sale of debt securities of the Parent Company with its subsidiaries in 2023 and 2022
amounted to P21.27 billion and P2.84 billion, respectively.
The following table shows the amount and outstanding balance of other related party transactions
included in the financial statements:
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C HI NA BANK I NG COR P O R AT I O N

141

143


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ia i itie

In the normal course of the roup9s operations, there are various outstanding commitments andcontingent liabilities which are not reflected in the accompanying financial statements. Management
does not anticipate any material losses as a result of these transactions.
There are several suits, assessments or notices and claims that remain contested. Management
believes, based on the opinion of its legal counsels, that the ultimate outcome of such suits,assessments and claims will not have a material effect on the roup9s and the Parent Bank9s financial
position and results of operations.
The following is a summary of contingencies and commitments of the roup and the Parent
Company with the equivalent Peso contractual amounts:"4756()2%46/)06%''1706516) 14)-+0):',%0+)&17+,6 !4)')-8%&.)
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*SGVFS187254*
142

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

144
32. e ment Information
The roup9s operating businesses are recogni ed and managed separately according to the nature ofservices provided and the markets served, with each segment representing a strategic business unit.
The businesses are organi ed to cater to the banking needs of market segments, facilitate customer
engagement, ensure timely delivery of products and services as well as achieve cost efficiency andeconomies of scale. In 2022, the ending Business Segment was split into two separate segments,
namely, Institutional Banking Segment and Consumer Banking Segment to integrate various business
units for synergy and maximi ation of potential value in terms of market share, product line, customer
base and operational efficiency. Corresponding segment information for all periods presented herein
are restated to reflect such change.
The roup9s business segments are as follows:a. Institutional Banking principally handles lending, trade finance and corollary banking products
and services offered to corporate and institutional customers as well as selected middle market
clientsb. Consumer Banking principally handles home loans, contract to sell receivables, loans todevelopers, auto loans, and credit cards for individual and or corporate customers
c. Retail Banking Business principally handles retail and commercial loans, individual andcorporate deposits, overdrafts and funds transfer facilities, trade facilities, and all other services
for retail customers
d. Financial Markets principally provides money market, trading and treasury services, manages
the Bank s funding operations through the use of government securities, placements andacceptances with other banks as well as offers advisory and capital raising services to corporateclients and remittance transactionse.

thers handles other services including but not limited to trust and investment management
services, wealth management services to high net worth customers, asset management, credit
management, operations and financial control, cash management services and other support
services andf.

Subsidiaries handles services of the Parent Bank s subsidiaries and affiliates such as thriftbanking business, investment house, insurance brokerage, bancassurance business, stock
brokerage and computer related services.

The roup reports its primary segment information to the Chief perating Decision Maker (C DM)
on the basis of the above mentioned segments. The C DM of the roup is the President of the
Parent Company.
Segment assets are those operating assets that are employed by a segment in its operating activities
that are either directly attributable to the segment or can be allocated to the segment on a reasonablebasis.
Segment liabilities are those operating liabilities that result from the operating activities of a segment
and that either are directly attributable to the segment or can be allocated to the segment on areasonable basis.

*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

143

145
Interest income is reported net as management primarily relies on the net interest income as
performance measure, instead of gross income and expense.
The segment results include internal transfer pricing ad ustments across business units as deemed
appropriate by management. Transactions between segments are conducted at estimated market rates
on an arm9s length basis. Interest is charged credited to the business units based on a pool of funds
rate which approximates the marginal cost of funds.
ther operating income mainly consists of trading and securities gain (loss) net, service charges,
fees and commissions, trust fee income and foreign exchange gain net. ther operating expense
mainly consists of compensation and fringe benefits, provision for impairment and credit losses, taxes
and licenses, occupancy, depreciation and amorti ation, stationery, supplies and postage, andinsurance. ther operating income and expense are allocated between segments based on equitable
sharing arrangements.
The roup has no significant customers which contributes 10.00% or more of the consolidated
revenues.
The roup9s asset producing revenues are located in the Philippines (i.e., one geographical location)
therefore, geographical segment information is no longer presented.
The following tables present relevant financial information regarding business segments measured inaccordance with PFRS as of and for the years ended December 31, 2023, 2022, and 2021:
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*SGVFS187254*
144

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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" The roup9s share in net income (loss) of an associate included in other operating income amounting
to P435.08 million, P285.0 million, and (P1. 0 million) million in 2023, 2022 and 2021,
respectively, are reported under ther Business and Support nits9.

*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

145

147
33.

arnin

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are

Basic EPS amounts are calculated by dividing the net income for the year by the weighted average
number of common shares outstanding during the year.
The following reflects the income and share data used in the basic earnings per share computations:



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As of December 31, 2023, 2022 and 2021, there were no outstanding dilutive potential commonshares.

34.

pp ementar Information for Ca

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The following is a summary of certain non cash investing activities that relate to the analysis of thestatements of cash flows:  
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*SGVFS187254*
146

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

148
The following table shows the reconciliation analysis of bonds payable, bills payable, and leaseliability under financing activities for both the roup and Parent Company for the years ended
December 31, 2023 and 2022:
2023
Balance at beginning of year
Cash flows during the year
Proceeds
Settlement payment
on-cash changes
Additions
Accretion of interest pretermination
Foreign e change movement
Balance at end of year




26 

2 312

0

2 9 0 301

63 32 304
4 623 126

322 16912 101

4 9 6
4 9 4 939 6
41 0 319 9 9 30

1 042 99
246 90101 6

4363 32 304
394

3 34 91 042 99
2 64
2 039
10 13
3

Total
P111,12 , 0
02, 6, 6( 19,6 , ) !"#' '#!!"## ! #!"# #"

Balance at beginning of year
Cash flows during the year
Proceeds
Settlement payment
on-cash changes
Additions
Accretion of interest
Foreign e change movement
Balance at end of year

03

Bills Payable
P6 , 06,2

Bonds Payable
P 2, ,

Consolidated
2022
ease iability
P2, 6,01

02, 6, 6( 0 ,99 , )(1 ,000,000)(6 ,99 )6,126, 1
P 0, ,26

126,06
1 ,2 9P2 , 12, 0

91, 91
1 1, 9P2,9 0, 01

91, 910 , 2
6, 9,962
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2023
Balance at beginning of year
Cash flows during the year
Proceeds
Settlement payment
on-cash changes
Additions
Accretion of interest pretermination
Foreign e change movement
Balance at end of year

03

26 

2 312

0

2 393 362

101 0 1 499

63 32 304
4 623 126

322 1663 90263 32 304
3 19

4 9 6
4 9 4 939 6
41 0 319 9 9 30

629 4
193 3
2

292

629 4
233 042
2 039
10 366 0 !"#' '#!!"## ! #!"# #"

Balance at beginning of year
Cash flows during the year
Proceeds
Settlement payment
on-cash changes
Additions
Accretion of interest
Foreign e change movement
Balance at end of year

Bills Payable
P6 , 06,2

Bonds Payable
P 2, ,

2022
ease iability
P2,1 , 9

Total
P110, 6 , 0

02, 6, 6( 0 ,99 , )(1 ,000,000)( 0 ,6 2)

02, 6, 6( 19, 99,1 9)

6,126, 1
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69,1 6
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*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

147

149
35.

ff ettin of inan ia

et ania i itie

The amendments to PFRS 7 require the roup to disclose information about rights of offset andrelated arrangements (such as collateral posting requirements) for financial instruments underenforceable master netting agreements or similar arrangements. The effects of these arrangements aredisclosed in the succeeding tables.
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*SGVFS187254*
148

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

150
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The amounts disclosed in column (d) include those rights to set off amounts that are only enforceable
and exercisable in the event of default, insolvency or bankruptcy. These include amounts related tofinancial collateral both received and pledged, whether cash or non cash collateral, excluding theextent of over collaterali ation.

3 .

ppro a of t e inan ia

tatement

The accompanying consolidated and parent company financial statements were authori ed for issue
by the Parent Company9s B D on February 2 , 2024.
37.

pp ementar Information e

ire

n er e tionof t ePresented below is the supplementary information required by BSP under Appendix 55 of BSP
Circular 1074 to be disclosed as part of the notes to financial statements. This supplementary
information is not a required disclosure under PFRS.
asic uantitati e indicators of financial erformance
The following basic ratios measure the financial performance of the roup and the Parent Company:

Return on average e uity
Return on average assets
et interest margin2023
1 .46%
1. %
4.24%

2022
1 .0 %
1. 6%
.21%

2021
1 . %
1. %
.2 %

2023
1 .46%
1. 2%
4.0 %

2022
1 .0 %
1. 0%
.9 %

2021
1 . %
1. %
.02%

Descri tion of ca ital instruments issued
The roup and the Parent Company consider its common stock as capital instruments eligible asTier 1 capital.

*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

149

151
Significant credit ex osures
Information on the significant credit exposures (gross of unearned discounts and allowance for
impairment and credit losses) of the roup and Parent Company are as follows:#.*4.;<*<.:.6<260*6-+=;26.;;;.:>2,.;
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The BSP considers significant credit exposures when the total loan exposure to a particular industry
or economic sector exceeds 30.00% of total loan portfolio or 10.00% of Tier 1 capital (see Note 24).


Status of loans
Information on the amounts of performing and non performing loans and receivables (gross ofallowance for impairment and credit losses) of the roup and Parent Company are as follows:
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150

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

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Loans er securit
As of December 31, 2023 and 2022, secured and unsecured non performing loans (NP s) of theroup and the Parent Company follow:
Consolidated
2023
13 1 3 4
6 42 320 0
4Securednsecured2022
P11, , 2
,0 ,2 6P16, 62,0 

Parent Company
2023
2022
11 432 03
P9,210, 69 
013 1 2
, 69, 116 44 190
P12, 9,900 

According to BSP Circular 941, Amendments to t e Regulations on Past Due and on Performing
Loans, loans shall be considered non performing, even without any missed contractual payments,
when it is considered impaired under existing accounting standards, classified as doubtful or loss, inlitigation, and or there is evidence that full repayment of principal and interest is unlikely without
foreclosure of collateral, if any. All other loans, even if not considered impaired, shall be considered
non performing if any principal and or interest are unpaid for more than ninety (90) days fromcontractual due date, or accrued interests for more than ninety (90) days have been capitali ed,
refinanced, or delayed by agreement.
Information on the amounts of secured and unsecured loans and receivables (gross of unearned
discounts and allowance for impairment and credit losses) of the roup and Parent Company are as
follows:
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%B63@A7<1:C23A:=/<AA31C@320GA6/@3A=4AB=19A=4=B63@47@;A2332=4/AA75<;3<B=4/11=C<BA@3137D/0:3/AA75<;3<B >:3253=4
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Secured liabilit and assets ledged as securit
The carrying amount of foreign currency denominated investment securities at amorti ed costpledged by the Parent Company as collateral for its interbank borrowings amounted to P82.00 billion
and P 7.00 billion as of December 31, 2023 and 2022, respectively. The carrying amount of thepeso denominated investment securities at amorti ed cost pledged by the Parent Company as
collateral for its interbank borrowings amounted to P9.90 billion and P14. 3 billion as of*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

151

153
December 31, 2023 and 2022, respectively. The fair value of investment securities at amorti ed costpledged as collateral amounted to P85.15 billion and P75.45 billion as of December 31, 2023 and2022, respectively. The aggregate fair value of financial assets at FV CI pledged as collateralamounted to P5.49 billion nil and nil as of December 31, 2023 and 2022, respectively.
Related art loans
As required by the BSP, the roup discloses loan transactions with its and affiliates and investees andwith certain directors, officers, stockholders, and related interests (D SRI). nder existing banking
regulations, the limit on the amount of individual loans to D SRI, of which 70.00% must be secured,
should not exceed the regulatory capital or 15.00% of the total loan portfolio, whichever is lower.
These limits do not apply to loans secured by assets considered as non risk as defined in theregulations.
BSP Circular No. 423, dated March 15, 2004, amended the definition of D SRI accounts. The
following table shows information relating to the loans, other credit accommodations, and guarantees
classified as D SRI accounts under regulations existing prior to said Circular, and new D SRI loans,other credit accommodations granted under said Circular:
2023

Total outstanding OSRI loans
Percent of OSRI Related Party loans
to total loan portfolio
Percent of unsecured OSRI Related
Party loans to total outstanding
OSRI Related Party loansPercent past due OSRI Related Partyloans to total outstanding
OSRI Related Party loans 
Percent of non-performing
OSRI Related Party loans to total
outstanding OSRI Related Partyloans 


9 222 120

2022

6 300




1.1 %

.63%

1.2 %

. 6%

2.93%

64.90%

2. %6 .9 %









2023

2022


Outstanding OSRI loans
Percent of OSRI Related Party loans
to total loan portfolio 
Percent of unsecured OSRI Related
Party loans to total outstanding
OSRI Related Party loans 
Percent past due OSRI Related Partyloans to total outstanding
OSRI Related Party loans 
Percent of non-performing
OSRI Related Party loans to total
outstanding OSRI Related Partyloans Related Partyoans (inclusive of
OSRI oans
OSRI oans)
P9,162,
P 9,9 1,6

9 21 41

6 293




Related Partyoans (inclusive of
OSRI oans
OSRI oans)
P9,1 6,
P 9,2 6,1 2

1.36%

10.0 %

1. 6%

9. %

2.92%

64.91%

2. %

6 . %

*SGVFS187254*
152

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

154
The amounts of loans disclosed for related parties above differ with the amounts disclosed for key
management personnel since the composition of D SRI is more expansive than that of key
management personnel.
BSP Circular No. 5 0 provides that the total outstanding loans, other credit accommodations, andguarantees to each of the bank9s quasi bank9s subsidiaries and affiliates shall not exceed 10.00% of
the net worth of the lending bank quasi bank, provided that the unsecured portion of which shall not
exceed 5.00% of such net worth. Further, the total outstanding loans, credit accommodations, andguarantees to all subsidiaries and affiliates shall not exceed 20.00% of the net worth of the lendingbank quasi bank and the subsidiaries and affiliates of the lending bank quasi bank are not related
interest of any director, officer, and or stockholder of the lending institution, except where suchdirector, officer, or stockholder sits in the B D or is appointed officer of such corporation as
representative of the bank quasi bank.
n May 12, 2009, BSP issued Circular No. 54 allowing a separate individual limit of twenty five(25.00%) of the net worth of the lending bank quasi bank to loans of banks quasi banks to theirsubsidiaries and affiliates engaged in energy and power generation.
ommitments and contingencies
The following is a summary of contingencies and commitments of the roup and the Parent
Company with the equivalent Peso contractual amounts:"4756()2%46/)06%''1706516) 14)-+0):',%0+)&17+,6 !4)')-8%&.)
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o

In compliance with the requirements set forth by RR No. 15 2010, hereunder are the details ofpercentage and other taxes paid or accrued by the Parent Company in 2023.
ross receipts tax
Documentary stamps tax
ocal taxes
Fringe benefit tax
thers
Total for the year

P2,722, 09
1,513,81
104,774
17,09749,033
P4,407,329*SGVFS187254*
C HI NA BANK I NG COR P O R AT I O N

153

155
ithholding Taxes
Details of total remittances of withholding taxes in 2023 and amounts outstanding as ofDecember 31, 2023 are as follows:

Final withholding taxes
ithholding taxes on compensation and benefits
Expanded withholding taxes

Total
remittances
P3,908, 13
834,527
204,219
P4,947,359

Amounts
outstanding
P3 5,983
4 ,197
14,524
P42 ,704

Tax Assessment
As of December 31, 2023, the Parent Company has no pending tax assessment from the BIR.

*SGVFS187254*
154

20 2 3 ANNUAL F I NANC I AL AND S USTAI NAB I LI T Y R EP O RT

CHINA BANKING CORPORATION

Chinabank Building, 8745 Paseo de Roxas
corner Villar Street, Makati City 1226 Philippines