Double-digit growth in curiosity and non-interest revenue allowed Philippine lenders to put up an even bigger revenue within the first three months of the yr regardless of credit score losses.
Preliminary Bangko Sentral ng Pilipinas (BSP) information present that the banking system’s web revenue hit P59.66 billion within the first quarter of 2020, 9.29-percent increased in comparison with the P54.58 billion recorded throughout the identical interval in 2019.
Working revenue totaled P225.87 billion, up 22.54 % from P184.31 billion as web curiosity revenue widened by 24.40 % to P175.06 billion from P140.72 billion.
Banks’ non-interest revenue, meantime, rose 16.55 % to P50.80 billion — versus P43.59 billion — due to increased charges and commissions, buying and selling earnings and different revenue.
Dividend earnings declined by 19.42 % to P832.54 million, charges and commissions expanded by 12.56 % to P27.14 billion, buying and selling revenue gained 21.88 % to P18.20 billion, whereas different revenue was increased by 31.87 % to P4.62 billion.
Banks, nevertheless, incurred P13.59 billion in losses on monetary belongings.
The banking system’s provision for credit score losses on loans and different monetary belongings reached P14.09 billion in January to March this yr, larger than the P9.85 billion recorded a yr in the past.
Losses from unhealthy money owed written off by banks additionally climbed by 28.69 % to P1.23 billion, from P961 million in three months to March 2019.
Late final week, the central bank reported that belongings of the banking system reached P18.1 trillion at end-February 2020, which is 8.8-percent increased than the extent posted in the identical interval final yr.
Deposits additionally surged by 8.four % year-on-year to P13.6 trillion, “most of which were deployed to lending to productive activities,” the BSP stated in an announcement.
The banking system’s gross whole loan portfolio (TLP), in the meantime, was up by 10.2 % year-on-year to P10.9178 trillion at end-February this yr.
“Despite higher lending, loan quality remained satisfactory, as the banks’ non-performing loan ratio stood low at 2.2 percent at end-February this year,” the BSP added.
In a press briefing, Bangko Sentral Governor Benjamin underscored that leaner and stronger outreach backed the banking business efficiency.
Diokno stated bank workplaces grew to 12,892 on account of recent different workplaces added to the general community at end-February this yr.
“While the BSP promotes the streamlining and consolidation of the banking industry, banks are encouraged to widen their presence and broaden their geographical and digital footprints through the establishment of branch lite units, other offices, and digital access points to bring more innovative and efficient financial services to the countryside, particularly the hard-to-reach unserved and underserved areas,” he added.