Stock Signals Philippines - Trade Independently - Invest Profitably

MANILA, Philippines – In spite of the sudden drop in the industry’s market income, it was reported by the BSP yesterday that the Philippines’ prominent banks booked a growth of 6.8 percent last year.

It was seen from the initial data that was released by the Philippine central bank that the commercial and universal bank profits last year have amounted to 146.33 billion pesos. This is higher by 9.38 billion pesos compared to the amount recorded in 2016 which is 136.95 billion pesos.

The interest profits of prominent banks progressed to 16.9 percent from 405.97 billion pesos to 474.58 billion pesos. At the same time, interest rate also increased by 15.3 percent from 91.03 billion pesos to 104.94 billion pesos, causing the double-digit increase in net interest revenue progressing 17.3 percent from 314.88 billion pesos to 369.38 billion pesos.

On the contrary, while trading income fell by 28.3 percent from 50.28 billion pesos to 36.05 billion pesos, non-interest revenue dropped 5.44 percent from 128.86 billion pesos to 121.84 billion pesos.

Profit is seen in the data showing sale or return of securities from 2016’s 24.88 billion pesos to last year’s 7.94 billion pesos by 68.1 percent dropping 68.1 percent.

In addition to that, profit coming from transactions of foreign exchange fell to 3.93 billion pesos from 6.73 billion pesos by 41.6 percent. At the same time, profits from foreign exchange dropped 38.5 percent from 11.45 billion pesos to 7.04 billion pesos at the moment that monetary authorities permitted the controlled and continuous decreasing value of the Philippine peso opposed to the dollar.

Non-interest expenditure of prominent banks grew by 11.4 percent from 279.86 billion pesos during 2016 to last year’s 311.77 billion pesos.

Banking companies that dominate the industry are tycoon Henry Sy’s Banco de Oro Unibank, Inc., magnate George SK Ty’s Metrobank Group, Ayala’s Bank of the Philippine Islands, Dy family’s Security Bank, Lucio Tan’s Philippine National Bank, Sy’s China Bank, Aboitiz’ Union Bank, and Yuchengco’s Rizal Commercial Banking Corporation.

The earnings of the prudent banks rose by 29.1 percent from 13.89 billion pesos in 2016 to last year’s 17.04 billion pesos, according to the Banko Sentral ng Pilipinas.

During the central bank’s annual party held last month, Nestor Espanilla Jr., the current governor of the BSP, said in his speech that the banking system in the Philippines is doing well, with strong growth in credit and showing capital sufficiency, liquidity, asset quality, and profitability. He noted that the financial system contributed support to the country’s economic events that happened in 2017. Balance sheets of banks increased in deposits and assets with double-digit progress.

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