November 6, 2022 | 00:00
MANILA, Philippines — Total resources of the country’s banking sector improved by 7.8 percent to P21.34 trillion in the first half as the economy recovers from the pandemic.
Based on the latest semi-annual report on the Philippine financial system from Bangko Sentral ng Pilipinas, the overall assets of the banking system stood at 21.347 trillion pesos at the end of June, almost 8% higher than the level of the year. last.
The growth was also faster than the 6.4% increase in June last year and the 6.6% average rate of improvement during the pandemic.
The BSP said the expansion was largely due to deposits and mainly lending and investment activities.
Broken down, the total assets of universal and commercial banks increased by 9.5% to reach 20,070 billion pesos. This figure represented 94% of the total resources of the banking system.
Rural and cooperative banks also saw their assets jump 16.5% to 300 billion pesos, or about 1.6% of the total.
On the other hand, savings bank assets fell by a double-digit rate of 22% to 900 billion pesos as part of the rationalization of the sector.
By asset composition, loans held the majority of the banking system’s total assets at 11.31 trillion pesos or 53% of the total.
Investments and cash and bank receivables come next with 6.17 trillion pesos and 2.85 trillion pesos, respectively.
Other assets totaled 1,020 billion pesos with a share of 4.8%. The asset mix has generally held steady over the past six years.
Overall, the BSP noted that the performance of the local banking system continued to improve in the first half, despite the lingering effects of the pandemic and the challenges of the macroeconomic environment.
“The expansion in assets, loans, deposits and net income continued, which was reinforced by management’s efforts to maintain adequate capital and liquidity reserves as well as loan loss reserves” , said the BSP.
“Funded by generation of deposits, the growth in resources has enabled the banking system to provide financial products and services that meet the needs of the country,” he said.
The central bank said financial soundness indicators on capital adequacy, asset quality, profitability, liquidity and sensitivity to market risk suggest the banking system remains stable and resilient despite tougher financial conditions. strict.