Big banks post better earnings

BIG BANKS in the Philippines managed to grow their bottom lines during the first half of 2018 at a time of rising interest rates and bigger tax dues, latest central bank data showed.

Universal and commercial banks made a cumulative P77.364 billion net income as of end-June, 7.7% higher than the P71.842 billion they booked during first six months of 2017. These lenders made P39.768 billion during the first quarter, according to the Bangko Sentral ng Pilipinas (BSP). Big banks made P146.33 billion in 2017.

Net interest income surged by 14.9% to reach P202.492 billion during the first half of 2018, coming from P176.189 billion reported during the same period last year. So far, these big banks have granted a total of P8.331 trillion worth of loans and shored up P11.019 trillion in deposits as of June.

On the other hand, non-interest income hit P71.134 billion, up 27.2% from the P55.915 billion booked a year ago.

Trading income surged by 80% from a year ago to hit P25.876 billion, led by realized gains from dollar transactions. This came despite a 24% reduction in gains for foreign exchange trading, at a time when the peso is at trading 12-year lows versus the greenback.

Revenues from fees and commissions also grew by a tenth to hit P37.888 billion, helping offset a 12.5% drop in dividend income, data showed.

On the other hand, non-interest expenses rose by 16.9% to P174.513 billion, with spending on taxes and licenses up by a fourth to P18.576 billion.

Administrative expenses, which account for nearly half the sum, grew by 16% to P73.014 billion. Salaries for bank employees and officials also picked up by a tenth to hit P56.752 billion. •