Big banks’ profit up 7.68% in first half

The country’s big banks made combined net profits of 177.36 billion in the first half of 2018, up 7.68 percent year-on-year, and boosted by increasing resources, deposits and lending growth despite outflows and the weak peso.

Overall, the Bangko Sentral ng Pilipinas (BSP) said the entire banking sector’s total net profits increased by 3.71 percent year-on-year to 185.39 billion during the period. These includes thrift and rural banks.

Banks reported total net interest income of 1202.49 billion as of end-June, up 14.92 percent from 1172.19 billion. Non-interest income increased by 27.22 percent to 171.13 billion from 155.91 billion.

The large lenders or the universal and commercial banks accounted for more than 90 percent of both resources and earnings.

BSP Governor Nestor A. Espenilla Jr. said the banking industry is growing along with the positive economic performance, and stronger from past reforms.

He said these reforms “put in place by the BSP along with the banks’ commitment to improve their ability to manage risks have resulted in significant improvements in the quality of banks’ assets and loan portfolios,” Espenilla said.

Regulatory changes have also reinforced banks’ capital health while the growth also continue to get a boost from the double-digit expansion in bank loans and investments as banks are better in handling risks.