China Bank Savings is building more room to raise capital as part of a regulatory plan for dealing with severe financial stress.
The thrift banking arm of China Banking Corp. led by ultra bilyonaryo Hans Sy is moving to increase its authorized capital to ₱19 billion from ₱14 billion, a move it disclosed is partly tied to a “BSP-prescribed Recovery Plan.”
CBS shareholders approved the increase on June 18 through the creation of 50 million common shares with a par value of ₱100 each.
“The increase aims to strengthen CBSI’s capital base, support capital-raising initiatives and expansion, and form part of its BSP-prescribed Recovery Plan,” Chinabank said in its second-quarter filing.
Recovery plans are required by the Bangko Sentral ng Pilipinas and spell out steps banks can take to restore their financial position if they come under serious stress. .
The bigger capital cushion comes as CBS is also taking a more defensive stance on credit.
CBS president James Christian Dee said in June that the lender had more than doubled its provisions for credit losses in the first quarter compared with a year earlier.
“This strengthens our balance sheet and ensures we remain prepared for potential risks,” Dee said.
Dee, however, said CBS had not seen significant stress in its loan portfolio. Its non-performing loan ratio stood at 2.9% in March, compared with 6.3% for the thrift banking industry, while deposits increased 12% to ₱191.4 billion.
“Overall, our portfolio remains healthy, customer activity remains strong, and we continue to balance prudent risk management with sustainable growth,” Dee said.
CBS Chairman Ricardo Chua said the bank was reviewing its plans amid geopolitical tensions, domestic political uncertainty and a weaker economic environment.
“While we observe this short term downturn in the economy, we continue to address the long term structural need of the bank,” Chua said.
CBS also continues to expand, opening five branches and upgrading 10 branch-lite units in the first half, with more network expansion planned.
The thrift bank earned ₱1.19 billion in the first half of 2026, unchanged from a year earlier, while assets climbed nearly 10% to ₱225.5 billion from ₱205.5 billion.
