Financial institutions yield increased profit as of June

The combined profit of nonbank financial institutions in the country grew in the first semester as rising income boosted the demand of Filipino individuals and corporate entities for investments.

According to the Bangko Sentral ng Pilipinas, the double-digit increase in the collective income of investment houses and financing companies indicated that the country’s entire financial sector—not just the banks—remains healthy.

According to data from the BSP, the combined  net income of investment houses and financing companies in the country amounted to P2.297 billion in the first half of this year, up by 26 percent from only P1.821 billion in the same period last year.

Data further showed that the source of income growth was broad-based, as profits were registered in various lines of businesses, such as lending, leasing and financial service fees.

Of the combined income of all nonfinancial institutions in the second quarter, P1.097 billion was accounted for by profits of investment houses.

This amount was up by 4.3 percent from P1.052 billion in the same period last year.

Financing companies accounted for P1.2 billion of the total income of nonbank financial institutions. This marked a 56-percent increase over the same period from only P769 million last year.