Resources of the Philippine banking sector grew further to hit a new record high in May as the growing economy boosted deposits, profits and capital levels of banks.
Data from the Bangko Sentral ng Pilipinas showed that combined resources of universal, commercial, thrift and rural banks in the country amounted to P7.57 trillion by the end of May, up by nearly 6 percent from P7.15 trillion in the same period last year.
Resources were driven largely by growing deposits and partly by rising retained earnings and capital of banks.
BSP officials said the continually rising resources of the banking sector gives comfort that it can help support the funding needs of the economy. With significant amount of resources, they said, banks are likely to extend more loans to corporate entities and individuals to support investments and consumption.
Of the total resources as of the period mentioned, the bulk of P6.75 trillion was owned by universal and commercial banks. This was up by 5.6 percent from P6.39 trillion a year ago.
These large banks mostly cater to the loans, deposits and other financial-service requirements of large corporate entities. Officials said the rise in resources of these banks indicated profitability that helped increase demand of large enterprises for deposit facilities of banks.
Thrift banks, which cater largely to requirements of individuals for retail services, such as deposits and housing and automobile loans, accounted for P633.11 billion of the total resources of the banking sector. The amount was up year on year by 10 percent from P573.31 billion.
Rural banks, which cater to the financial services needs of individuals and businesses in the countryside, accounted for P185.64 billion of the total resources. This was up year on year by 0.6 percent from P184.61 billion.
Growing deposits from the public are partly credited to rising incomes that allowed individuals and enterprises to keep more excess cash in banks.—Michelle V. Remo