Banking industry posts double-digit profit growth
The consolidated income of universal and commercial banks in the country continued to register double-digit growth, supporting projections by regulators that industry profit would rise this year as demand for bank products and services increases.
Data from the Bangko Sentral ng Pilipinas showed that the combined net income of universal and commercial banks reached P21.66 billion in the first three months, up by 17 percent from P18.55 billion in the same period last year.
The BSP data also showed that the growth in the banking industry’s profitability was driven both by lending and nonlending activities, which include payment, custodianship and underwriting services.
There are 38 universal and commercial banks in the country. Among the biggest are Banco de Oro, Metrobank and Bank of the Philippine Islands.
Regulators said the banks’ first-quarter income performance indicated the probability that their full-year profit would exceed last year’s P83.36 billion, a record high.
Last year’s net income marked a 31-percent jump from P63.72 billion in 2009.
Earlier, BSP Deputy Governor Nestor Espenilla Jr. said the banking industry’s income might exceed that of last year’s but that this year’s profit growth might not be as fast as the 31 percent recorded last year.
He said the business environment this year, although still favorable for business, faced certain challenges that were not seen last year.
These include faster inflation and higher interest rates, which could temper growth in demand for loans.
The BSP believes that banks, led by universal and commercial lenders, will continue to post rise in lending to consumers and businesses this year, supporting efforts to further boost economic growth.
The BSP earlier reported that the outstanding loans of universal and commercial banks in the country amounted to P2.37 trillion as of end-March, up by 14.1 percent from P2.08 trillion in the same period a year ago.
The profitability and liquidity of the banking sector ensures its ability to support higher consumption by individuals and increased investments by enterprises, it said.
