China Banking Corp. is seeking potential buyers for a 14-hectare property in Mactan, Cebu, the site of the unfinished Emerald Bay Resort, following the expiration of its leaseback agreement with PH Resorts Group Holdings Inc.
The bank now holds full ownership of the land and plans to open it up to interested investors. Several parties have reportedly expressed preliminary interest in acquiring the property.
The land was previously held by PH Resorts subsidiaries Lapulapu Leisure Inc. and Lapulapu Land Corp., which had entered into a sale-and-leaseback deal with Chinabank in October 2023.
The arrangement formed part of a debt restructuring agreement, allowing the subsidiaries to repay a 2018 bridge loan while retaining temporary use of the property for continued development of the resort.
Under the terms of the deal, PH Resorts had an option to repurchase the land until March 31, 2025, including associated costs and expenses incurred by the bank.
PH Resorts said in its annual report it was exploring a possible repurchase, but the leaseback arrangement has since lapsed without renewal.
Chinabank is no longer considering an extension of the agreement. Meanwhile, SM Investments Corp., linked to the bank’s leadership, is not pursuing acquisition of the site due to existing development commitments elsewhere.
The Emerald Bay project was originally positioned as a flagship integrated resort development but has been beset by financial setbacks and delays.
Sustained momentum
Chinabank sustained its momentum from strong core business growth, posting P6.5 billion in net income in the first quarter of 2025, up 10% from the same period last year.
The robust performance translated to a return on equity of 15.1% and a return on assets of 1.6%, still among the highest in the industry.
“Our first quarter results reflect the fruits of the concerted efforts across all our different businesses to drive organic growth and support our customers,” Chinabank President & Chief Executive Officer Romeo D. Uyan Jr. said.
Net interest income jumped by 14% to P17.1 billion, driven by higher asset yields and loan volume which offset increased interest expenses. Net interest margin remained at a healthy 4.5%. Total revenues reached P16.3 billion, up 8% year-on-year.
Operating expenses went up by 17% to P8.4 billion driven by continued investments to boost its digital, infrastructure, and talent capabilities.
Total assets increased by 10% to P1.7 trillion, cementing Chinabank’s position as the 4th largest private universal bank in the Philippines.
