Thrift banks’ income falls 27.6% in Q3

Central bank data showed the 70 thrift banks combined had lower net income in the third quarter, down 27.66 percent year- on-year to 6.86 billion. The Bangko Sentral ng Pilipinas’ (BSP) income statement report for thrift banks said non-interest income, which is income from trading activities, decline by 40 percent to

8.83 billion as of end-September compared to the same period last year of 14.7 billion.

Traditional banking services which translates to net interest income, however, increased by 19 percent from 25.13 billion to

29.92 billion during the period as thrift banks strengthened core operations, especially commercial lending activities.

Thrift banks’ loans and deposits boost interest income since the smaller banks, particularly subsidiaries of universal and commercial banks, have a significant market share for automotive and real estate loans.

As of end-September, the thrift banks’ cost-to-income ratio increased to 69.88 percent from the previous year’s 63.20 percent, while net interest margin was almost unchanged at 5.25 percent.

The banks’ return on assets and return on equity, in the meantime, both dropped to 0.92 percent and 7.83 percent from the same period last year of 1.68 percent and 13.66 percent.

The country’s top five largest thrift banks in terms of assets and loans are BPI Family Savings Bank, Philippine Savings Bank, RCBC Savings Bank, Philippine Business Bank ( PBB) and Planters Development Bank.

In terms of deposits size, the top three positions hold, while the fourth and fifth place is interchanged with PBB in the bottom top five. City Savings Bank, Inc. edges out Planters Bank in the top five in terms of highest capital base.