Non-banks book income of R9.42 billion in 2017

Nine non-banks with quasi-banking functions (NBQB) reported a combined net income of R9.42 billion at the end of 2017, up 41.88 percent from the previous year’s R6.64 billion.

NBQBs are financing firms and investment houses, of which there are five and three in operation, and only one “other non-bank.”

Last year, the Bangko Sentral ng Pilipinas (BSP) reported that nonbanks’ net interest income rose to R18.82 billion from R15.17 billion in 2016, while non-interest income went up to R5.40 billion from R3.19 billion.

Financing firms’ net income increased to R7.31 billion last year while investment houses’ went up to R2.11 billion, from R4.88 billion and R1.76 billion, respectively.

NBQBs as non-bank financial institutions are not licensed to operate full banking operations but are allowed to offer bank-related financial services such as investment, risk pooling, contractual savings and market brokering.

The supervised NBQBs include BPI Capital Corp., First Metro Investment Corp., MetroCard Corp., RCBC Capital Corp., Philippine Depository and Trust Corp., Toyota Financial Services Phils. Corp., Cebu International Finance Corp. and Orix Metro Leasing & Finance Corp.

Combined, these nine NBQBs have total assets of R260.92 billion at the end of 2017, up 18 percent yearon-year.

The BSP also monitor non-banks without quasi banking functions including pawnshops, non-stock savings and loan associations, and investment houses with trust operations. These numbered 5,510 as of end-2017, of which 5,371 are pawnshops. (LCC)