ASEAN KEY DESTINATIONS
Philippine banks post double-digit income rise
The profit of the country’s universal and commercial banks increased by double digits in the first three quarters of the year as the growing economy led to higher demand for financial products and services.
Regulators said the healthy financial condition of banks showed that they have the ability to support consumption and investment activities, mainly through loans, and thus help maintain the robust growth of the economy.
Data from the Bangko Sentral ng Pilipinas (BSP) or central bank showed that big banks registered a combined net income of 80.11 billion pesos (US$1.9 billion) as of end-September, up by 15 per cent from the 69.63 billion pesos recorded in the same period last year.
Data showed that interest income, mainly earnings from interest on loans extended to clients, amounted to 216.02 billion pesos, up by 0.4 per cent from 215.15 billion pesos.
Non-interest income—which includes earnings from services like bills payment, remittance facilitation, custodianship and underwriting—reached 96.88 billion pesos, up by 16 per cent from 83.57 billion pesos.
The banking sector usually moves with the economy, as the demand for financial services, such as loans to fund investments, rises when there is economic growth.
In the first three quarters, the Philippine economy grew by 6.5 per cent, and expectations are that full-year growth will exceed the official target of 5 to 6 per cent.
In the third quarter alone, the economy grew by a surprising 7.1 per cent, the fastest in Southeast Asia.
According to the BSP, the country’s banking sector is sound and stable, and will be able to continue providing the funding support for the economy.*US$1=40.9 pesos
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