China Bank declares dividends

Shareholders of publicly-listed China Banking Corp. are set to receive higher dividends next month as the Board of Directors approved an increase in their regular cash dividends.

In a disclosure to the Philippine Stock Exchange (PSE), China Bank declared P5.1 billion worth of cash dividends. This is a 28 percent increase compared to the previous year’s level.

The bank’s Board of Directors approved the declaration of P1.00 per share regular cash dividend and an additional P0.90 per share special cash dividend, payable on May 18 to all stockholders on record as of May 5.

“We are committed to distribute a fair share of the bank’s profits to our shareholders resulting in an attractive yield to their equity” China Bank President and CEO Romeo D. Uyan Jr. said.

The bank said the dividends represent 27 percent of China Bank’s full year 2022 net income of P19.1 billion and translate to a cash dividend yield of 5.9 percent based on the bank’s closing price of P32 as of April 19.

China Bank said its strong earnings, which more than doubled since 2018, enabled it to consistently pay cash dividends every year.

In 2022, the bank paid a total of P4 billion in cash dividends consisting of P1 per share regular dividend and P0.50 per share special dividend.

The bank earlier reported that despite the rise in its operating expenses driven by higher inflation, its net income rose by 27 percent to P19.1 billion in 2022.