PH banks post double-digit income rise as of Q3


The profit of Philippine universal and commercial banks increased by double digits in the first three quarters of 2012 as the growing economy led to higher demand for financial products and services.

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 showed that big banks registered a combined net income of P80.11 billion as of end-September, up by 15 percent from the P69.63 billion recorded in the same period last year.

Data showed that interest income, mainly earnings from interest on loans extended to clients, amounted to P216.02 billion, up by 0.4 percent from P215.15 billion.

Non-interest income—which includes earnings from services like bills payment, remittance facilitation, custodianship and underwriting—reached P96.88 billion, up by 16 percent from P83.57 billion.

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 percent, and expectations are that full-year growth will exceed the official target of 5 to 6 percent.

In the third quarter alone, the economy grew by a surprising 7.1 percent, the fastest in Southeast Asia.

The growth was credited to higher government spending and robust household consumption, which is partly aided by remittances from overseas-based Filipinos.

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.—Michelle V. Remo

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  • henry21

    I hope these banks will share portion of their profits to their bank clients by increasing the interest rates of the deposited monies and lowering the interest in bank loans.

    Banks are earning in billions every month and yet monies deposited in these banks earn a measly centavos per month. Central bank should do something about this.

  • George

    Beware of 2 banks..owned by Tan…

  • George

    The modus operandi of these banks is this, they get a bank, make it appear to be earning, then apply to be listed and later let them go under…calling PDI, why didn’t you ask export bank to pay you the 7B peso Urban bank owed you before you let Export bank took over the failed urban bank? Why?

    • tower_of_power

      PDI works in connivance with these banks … hati hati ang mga yan sa na swindle ng mga banko … isama mo na rin dyan ang Central bank!!! Maliwanag pa sa araw ang gawain ng mga yan!!!

  • George

    Big banks are making profits, while rural banks and banks by scalawags like export bank groups ( see their directors ), are selling IPOs and letting their banks fail, beware, BSP and PDIC are letting these scalawags get away with stealing depositors money.

  • Baket?

    Naks naman. Ingat lang ha. Baka mabulunan.

  • victor1052

    It’s no wonder local banks post huge profits because of an inutile BSP. Banks make a huge part of the profits by exacting triple punitive interests on hapless borrowers. The borrower is harassed to pay the triple compounded interest on pain of foreclosure of his property when the BSP can control such greediness of the banks. This malpractice has been going on for many years with indifference of the BSP or in cahoots with the banks.

    • Pons Corpuz

      At some point you are right that there is greediness among banks, but who in this world is not greedy anyway? we are all greedy in some way and banks are greedy on making profit because that’s what they are made for. 

      • victor1052

        What i am diving at is making a profit with a clear conscience. In Taiwan, banks and especially credit companies used to operate much like our system here, causing a lot of foreclosures, and suicides; until the government steps in and  put a lid on everything that resembles greed. The triple compounded interest is the most cruel of them all.  

    • Guest

       Only socialists, weaklings, losers use the term “greed”.

      • victor1052

        Tell that to the borrowers, or better still, the BSP

  • Ding

    Thank you overseas-based Filipinos sa inyong mga remittances.
    These OFW remittances been there almost for 40 years…ngayon lang
    sa tamang paghahandle ng mga pondo ng Pilipinas, nag-uumpisa nang
    magkaroon ng pagbabago sa ekonomiya ng bansa.
    God Bless You, PNoy, and God Bless the Filipinoi People.

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